Britain’s competition watchdog has launched an investigation into Google to determine whether the company has too much power in online search.
Google represents 90% of web searches: the Competition and Markets Authority (CMA) is examining whether it is using this dominant position to harm competition or user choice.
This is its first investigation after gaining new powers to investigate and enforce changes in companies it considers to have “strategic market status” in digital markets.
The CMA says it wants to ensure the tech giant “delivers good outcomes for people and businesses” and that there is a “level playing field” for its competitors.
In a statement, Google said: “We will continue to work constructively with the CMA to ensure the new rules benefit all types of websites, while enabling UK citizens to benefit from useful services and point.”
It’s the latest in a series of investigations Google faces around the world over its immense power in search and advertising technology.
In the United States, the government wants to sell its Chrome browser to respond to competition concerns.
The CMA says potential changes it could impose include sharing data collected by Google with other companies or giving publishers more oversight over how their data is used for its advertising features. artificial intelligence (AI).
“Millions of people and businesses across the UK rely on Google’s search and advertising services,” Sarah Cardell, chief executive of the CMA, said on Tuesday.
“And for businesses, whether you’re a competing search engine, advertiser or news agency, we want to ensure a level playing field for all businesses, large and small, to succeed.” ” she added, especially given the potential of AI to “transform” the market.
The CMA’s announcement of its investigation into Google search and advertising follows the digital market competition regime coming into force in January.
It gives the CMA the power to investigate companies it believes could dominate or occupy a key strategic position in a given sector.
An explanation on its website states that a company must meet several conditions before it can be considered to have “strategic market status.”
These include having a UK turnover of over £1 billion or a global turnover of £25 billion, being in a position of strategic importance or of “well-established market power” in relation to a certain digital activity.
The CMA says it will examine whether Google is using its position in search to prevent competitors from innovating or entering the market, or whether it is “self-privileging” its own services.
It will also examine whether Google collects large amounts of user data without proper and informed consent.
“It is our duty to ensure that people benefit fully from choice and innovation in search services and get fair treatment – for example in the way their data is collected and stored,” Ms Cardell said.
She will have nine months to carry out her investigation and two options if she considers that Google has a strategic status in the market: impose rules on its behavior or carry out interventions intended to stimulate competition.
It comes after Prime Minister Sir Keir Starmer touted the “vast potential” of AI to transform public services.
In a speech on Monday, Sir Keir said the recommendations of the AI Opportunities Action Plan – a set of proposals backed by several technology companies – would be implemented in a range of areas to help drive the growth of the economy and making AI “work for workers”.
