Google faces UK investigation over search dominance

The UK’s competition watchdog has launched an investigation into Google to probe whether it has too much power in online search.

Google accounts for 90% of UK web searches – the Competition and Markets Authority (CMA) is looking at whether it is using that dominant position to damage competition or selection for users.

It is its first investigation after gaining recent powers to investigate and enforce changes at firms it determines to have “strategic trade position” in digital markets.

The CMA says it wants to ensure the tech giant is “delivering excellent outcomes for people and businesses” and that there is a “level playing field” for rivals.

In a statement Google said: “We will continue to engage constructively with the CMA to ensure that recent rules advantage all types of websites, and still allow people in the UK to advantage from helpful and cutting edge services.”

It is the latest in a series of investigations Google faces worldwide over its immense power in search and advertising technology.

In the US, the government wants it to sell its browser, Chrome, to address competition concerns.

The CMA says potential changes it could impose include sharing data Google collects with other businesses, or giving publishers more oversight of how their data is used for its artificial intelligence (AI) features.

“Millions of people and businesses across the UK depend on Google’s search and advertising services,” said Sarah Cardell, the CMA’s chief executive on Tuesday.

“And for businesses, whether you are a rival search engine, an advertiser or a information organisation, we desire to ensure there is a level playing field for all businesses, large and tiny, to achieve.” she added, especially given the potential for AI to “transform” the trade.

The CMA’s announcement of its Google search and advertising investigation follows the digital trade competition regime coming into force in January.

It gives the CMA powers to investigate firms it believes may dominate or occupy a key strategic position in a sure sector.

An explainer on its website says a business must meet several conditions before it can be determined to have “strategic trade position”.

These include having a UK turnover of more than £1bn or global turnover of £25bn, occupying a position of strategic significance or “entrenched trade power” in relation to a sure digital activity.

The CMA says it will look at whether Google is using its position in search to prevent rivals from innovating or entering the trade, or if it is “self-preferencing” its own services.

It will also look at whether Google is collecting large amounts of user data without proper, informed consent.

“It’s our job to ensure people get the packed advantage of selection and innovation in search services and get a fair deal – for example in how their data is collected and stored,” said Ms Cardell.

It will have nine months to carry out its investigation and two options at its disposal if it finds Google to have strategic trade position – imposing rules on how it behaves, or making interventions designed to boost competition.

It comes after the Prime Minister Sir Keir Starmer lauded AI’s “vast potential” to transform community services.

In a talk on Monday, Sir Keir said recommendations from the AI Opportunities Action schedule – a set of proposals backed by several tech firms – would be implemented across a range of areas to assist develop the economy and make AI “work for working people”.