The Competition and Markets Authority (CMA) in the United Kingdom has launched an investigation into Google’s search services, using its recently enhanced regulatory powers to examine the tech giant's influence on consumers, advertisers, and competitors.

This step comes amid increasing demands in the United States for tougher actions against the company, potentially even a breakup.

Sarah Cardell, chief executive of the CMA, highlighted the necessity of fair competition in search services, which are crucial for economic growth.

"Millions of individuals and businesses use Google's search and advertising services, with ninety percent of searches conducted on their platform and over two hundred thousand UK businesses advertising there," she stated.

"Our responsibility is to ensure that people benefit from choice and innovation in search services and receive a fair deal."

Oliver Bethell, Google's competition director, responded via a blog post, expressing the company’s readiness to cooperate with the CMA.

He emphasized the significance of digital services like Google Search in fostering economic growth and advocated for evidence-based, innovation-friendly regulations.

Bethell cautioned that overly strict competition rules might hinder opportunities for consumers and businesses.

The UK regulator’s inquiry will focus on several key issues, including:
- Whether Google’s market dominance creates barriers to entry and hinders innovation in the search market.

- The possible preferential treatment of Google’s own services over those of competitors.

- Google’s acquisition and utilization of vast amounts of consumer data.

- The development of AI-powered search engines, like ChatGPT, and whether Google’s practices influence or obstruct these emerging technologies.

The CMA’s investigation follows a U.S. antitrust case where prosecutors argued that Google must take actions such as divesting its Chrome browser and sharing data with rivals to counter its purported monopoly on online search.

In August, a U.S. judge ruled that Google had breached antitrust laws by spending billions to secure its place as the world’s default search engine.

The UK inquiry will also assess whether Google should be classified as having Strategic Market Status (SMS) in search and search advertising, a designation that would enable the CMA to enforce certain conduct requirements or intervene in the market.

This aligns with the CMA’s broader efforts to tackle competition issues in the digital economy, which have also included probes into Amazon, Microsoft, and the Google-Apple dominance in mobile browsers.

The conclusions of the investigation, expected to take up to nine months, could result in significant actions, such as mandatory data sharing with competitors and granting publishers more control over their content.

The CMA’s initiative highlights the growing scrutiny of major tech companies worldwide and the challenges they face in navigating increasingly complex regulatory environments.