UK watchdog slams Google Search’s market dominance, starts antitrust investigations

The United Kingdom’s Competition and Markets Authority (CMA) has initiated an antitrust investigation into Google’s market dominance in search and search advertising. This marks the regulator’s first strategic market status (SMS) designation inquiry under the newly enacted Digital Markets, Competition and Consumers Act (DMCC).

According to a UK government post, the CMA’s investigation will assess whether Google’s search and advertising services harm competition and innovation. It will also look at whether consumers and businesses are receiving fair outcomes from the company’s services. 

Google’s search business, which reportedly accounts for over 90% of general search queries in the UK, is at the helm of economic connectivity, facilitating business interactions and generating data for AI-driven innovations.

UK legislation to focus on strategic market status

The DMCC, which took effect on January 1, 2025, aims to prevent anti-competitive practices in digital markets. Under this regime, companies with SMS can be subjected to regulatory changes to promote competition. 

The CMA estimates that enhanced competition in search advertising could save UK households up to £500 annually through lower prices across the economy.

According to the UK antitrust watchdog, designating Google’s search business as having SMS would allow the regulator to impose conduct requirements or propose pro-competition measures.

The recently announced probe will examine whether Google’s dominance hinders competition and innovation in search. While Google’s market share highlights weak competition, advances by companies like OpenAI make the argument that there is sufficient innovation in alternative search solutions. 

Additionally, the investigation will also evaluate whether the tech giant unfairly prioritizes its own services in advertising and AI, potentially harming competitors and reducing consumer choice.

Authorities will scrutinize Google’s use of consumer data without informed consent, particularly regarding intellectual property and content from publishers. They have given commenters up to February 3 to make or break the company’s case.

Google’s history with antitrust cases

Google has faced multiple antitrust queries globally, including in the United States and Europe. In its home market, US prosecutors argue that Google should divest its Chrome browser, share data and search results with rivals, and implement measures to reduce its monopoly in online search.

The CMA noted that it is maintaining regular contact with other authorities worldwide to coordinate efforts. 

“Millions of people and businesses rely on Google’s search and advertising services,” said CMA Chief Executive Sarah Cardell. “It’s our job to ensure people benefit from choice and innovation in search services and get a fair deal.”

Google’s search advertising platform supports over 200,000 UK businesses and facilitates connections between businesses, investors, and customers. It also generates valuable data for AI-driven products. For this reason, regulators believe it is imperative to monitor the search engine’s prowess in the market.

The regulator’s inquiry also aligns with broader efforts to curb anti-competitive practices in digital markets. Under the DMCC, firms with SMS in specific digital activities can be subject to tailored regulatory interventions to ensure positive outcomes for consumers and businesses.

Parallel investigations in the tech sector

In other news, the UK regulator recently accepted remedies proposed by Synopsys and Ansys provisionally to address competition concerns linked to their $35 billion acquisition deal. 

The companies, known for their expertise in electronic design automation and engineering simulation, respectively, offered to divest overlapping business units to alleviate market dominance concerns.

Per the CMA, Synopsys and Ansys’ proposed divestitures aim to maintain competition in key areas, including power consumption analysis tools and optics software. The regulator has until March 2025 to finalize its decision on fully accepting the proposals, with an option to extend the deadline up to early May for further deliberation.

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