New Delhi: Britain's competition watchdog has initiated an investigation into Google's dominant position in the search engine market, focusing on the impacts on both consumers and businesses.
The Competition and Markets Authority (CMA) announced the probe, marking it as the first major scrutiny under the UK's new digital market rules.
The CMA's investigation aims to determine if Google, which commands a staggering 90% of the UK's web searches, is leveraging its position to stifle innovation, favour its services over competitors, or engage in exploitative practices. This includes examining whether Google's practices prevent other search engines from innovating or entering the market and whether the company gives preferential treatment to its own services within search results.
A key aspect of the inquiry will be the examination of Google's data collection practices. The CMA will look into whether Google collects and uses large amounts of consumer data without explicit, informed consent, a practice that could have significant privacy implications for users.
Sarah Cardell, the CMA's chief executive, emphasised the importance of the investigation, stating, "Millions of people and businesses across the UK rely on Google's search and advertising services. It's crucial that these services are delivering good outcomes for people and businesses and that there is a level playing field for competitors."
The probe could lead to Google being designated with "strategic market status," subjecting it to stringent regulatory requirements under the newly enforced Digital Markets, Competition and Consumers Act. This status would empower the CMA to enforce changes in how Google operates its search business, potentially reshaping advertising practices and data handling within the UK.
Google has responded to the investigation, with a spokesperson indicating that the company will "continue to engage constructively with the CMA." Google Search, they noted, "supports millions of UK businesses to grow by reaching customers in innovative ways."
The timeline for the investigation has been set with the aim to reach an outcome by October 2025. This move by the UK regulator aligns with a broader global trend of examining the power dynamics in digital markets, with similar investigations and legal challenges against Google ongoing in the United States, where the Department of Justice is also pushing to address Google's market dominance in search and advertising.
This investigation into Google's practices could have far-reaching implications for the tech industry, setting a precedent for how dominant digital platforms are regulated to ensure fair competition and consumer protection in the digital age.