CMA launches competition probe of Google's search services

(Sharecast News) - Competition regulators in the UK have announced they are launching an investigation into whether Google is using anti-competitive practices in the search services sector.

The probe is the Competition and Markets Authority's first "strategic market status" (SMS) designation investigation under the new digital markets competition regime, which came into force on 1 January.

If Google is designated with SMS, the CMA can then impose conduct requirements or propose pro-competition interventions.

"For businesses, effective competition could keep down the costs of search advertising, equivalent to nearly �500 per household per year, in turn lowering prices across the economy," the regulator said in a statement.

"An effective, competitive market could also allow businesses to innovate in a way which creates alternatives to traditional search services, including by, for example, ensuring that new AI start-ups can compete with Google and other existing players on an equal footing."

The CMA is looking into whether there are inappropriate barriers to entry in the search space, and whether Google is using its foothold in the market to prevent competition or innovation.

It will also investigate whether Google is using its position to "self-preference its own services", as well as look into other potential exploitative conduct by the tech giant.

Commenting on the investigation, the CMA's chief executive Sarah Cardell said: "It's our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal - for example in how their data is collected and stored. And for businesses, 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."