The UK competition probe into Google, led by the Competition & Markets Authority (CMA), marks the first investigation under new digital markets competition rules. These rules, effective this month, aim to evaluate if large tech companies like Google should be designated with “strategic market status.” If so, they would face stricter conduct requirements to improve market competition for businesses and consumers.
Google, through its search engine arm, dominates over 90% of general search queries globally. This investigation will determine if this dominance in search and advertising impacts market innovation, fairness, and competition.
Impacts on Businesses and Consumers
The CMA emphasized the potential benefits of effective competition, noting that it could reduce search advertising costs. These costs currently amount to nearly £500 per UK household annually. Lowering these expenses could lead to reduced prices across the economy.
The probe will examine whether Google:
- Uses its position to stifle innovation.
- Promotes its own services in areas like shopping and travel unfairly.
- Collects and utilizes consumer data without informed consent.
- Engages with publishers under unfair terms and compensation.
Broader Legal Context
The UK competition probe follows a £13.6 billion ($17.2 billion) court case involving UK publishers, who allege that Google abused its power in online advertising. This case has been greenlit by the competition tribunal, signaling the growing scrutiny of Google’s practices.
Additionally, the CMA’s investigation builds on past concerns. Last August, the regulator halted a probe into Google and Apple due to administrative priorities, despite unresolved issues surrounding app store policies and fairness toward UK developers.
Timeline and Next Steps
The CMA aims to complete its investigation by September, with a decision expected by October 13, 2025. If Google and other tech giants are designated with “strategic market status,” the CMA will gain enhanced powers to address competitive and consumer protection concerns holistically.
The ongoing UK competition probe into Google reflects growing regulatory oversight of major tech companies. By addressing issues like market dominance, advertising costs, and data privacy, the CMA’s actions could reshape the digital landscape for consumers and businesses alike.
Stay informed about updates as the investigation progresses.
