1:16 am - January 23, 2025

The Competition and Markets Authority has begun a major inquiry into Google just after new powers came into effect on January 1.

The UK Competition and Markets Authority (CMA) has initiated an investigation into the search services market to evaluate whether Google maintains a dominant position that adversely affects users, media companies and advertisers. This inquiry marks the first enforcement of regulations under the newly established Digital Markets, Competition and Consumer Act, which is specifically designed to scrutinise companies with global revenues exceeding £25 billion ($44.6 billion), and came into force this month.

The CMA issued a press release detailing the focus of the investigation, saying: “The investigation will assess Google’s position in search and search advertising services and how this impacts consumers and businesses including advertisers, news publishers and rival search engines.”

The release acknowledged that Google had brought significant benefits to the UK economy but said that fair competition was important in this crucial marketplace.

Sarah Cardell, chief executive of the CMA, said of the business side of the investigation: “Whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.”

The investigation will explore a range of concerns, including whether Google has obstructed competition in the market, whether it has collected user data without proper consent, and whether the company has exploited news and other content without adequate compensation to the content creators. The CMA expects to conclude its investigation by October.

The scrutiny of Google’s market dominance is not confined to the UK. In the United States, the Department of Justice has pursued legal action against Google, alleging that it unlawfully maintains its supremacy in the online search domain through practices such as paying smartphone manufacturers to set its search engine as the default. This legal battle, which commenced in November last year, aims to enforce a forced sale of Google’s Chrome browser. A decision on this matter is anticipated in August.

Source: Noah Wire Services

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