UK competition watchdog to probe Google's search and advertising practices

Google processes 90% of all general search queries in the UK

The UK Competition and Markets Authority (CMA) has launched an extensive investigation into Google, focusing on its dominance in search and advertising markets.

The inquiry, announced on Tuesday, aims to assess the impact of Google's practices on consumers, businesses, advertisers, publishers and rival search engines, amidst concerns over potential anti-competitive behaviour and exploitative data collection.

"Given the importance of search as a key digital service for people, businesses and the economy, it is critical that competition works well," the CMA stated in a press release.

"Effective competition ensures people benefit from greater choice, new and innovative services, and have control over their data. Effective competition could help ensure that people can access a wide range of content and that publishers are treated fairly for the use of their content."

The investigation will determine whether Google holds "strategic market status" in search and search advertising services, and whether it engages in practices that prevent competitors from entering or expanding within the market.

Firms with "strategic market status" are defined as companies possessing entrenched market power in specific digital activities and meeting revenue thresholds of £25 billion globally or £1 billion within the UK.

Google, which processes 90% of all general search queries in the UK, also serves more than 200,000 UK advertisers through its search advertising platform.

The CMA's investigation will also examine Google's use of consumer data, particularly whether the company collects this data without proper consent, and whether such actions constitute "potential exploitative conduct."

It will also explore whether the firm leverages its dominant position to unfairly promote its own shopping and travel services over competitors, undermining a level playing field in the digital economy.

The CMA will now gather evidence from Google and engage with stakeholders, including advertisers, news publishers, and user groups. The investigation is expected to be completed within nine months, with a decision due by 13 October 2025.

The probe could lead to significant changes in how Google operates within the UK.

Possible outcomes include requirements for Google to share its extensive data repositories with competitors, granting publishers more control over how their content is used, especially in Google's artificial intelligence tools, such as its Gemini AI assistant.

This is the first major inquiry under the UK's new digital markets competition regime, which came into effect on 1^st January 2025.

Responding to CMA's decision, Oliver Bethell, director of competition at Google, expressed the company's commitment to constructive engagement with the regulator.

He highlighted the significant economic role Google Search plays in the UK. In 2023, Google's products generated an estimated £118 billion in economic activity, supporting over one million British businesses, Bethell said.

He cited the CMA's own acknowledgment of search engines as "vital for economic growth" and said it was important that regulatory decisions align with the UK government's growth priorities.

"A pro-innovation, evidence-based regime will help UK consumers and businesses by expanding options, reducing prices, and opening new markets," he noted.

"The alternative of overly prescriptive digital competition rules would end up stifling choice and opportunity for consumers and businesses. We will do our best to advocate for new rules that benefit every business and let people in the UK benefit from helpful, cutting-edge services."

CMA CEO Sarah Cardell has said the new regime aims to foster innovation while ensuring fairness.

"It will ensure that the multitude of UK businesses and consumers who depend on these large firms for critical products and services benefit from more innovation, more choice and more competitive prices,” she stated last week.

"The regime has been carefully designed to ensure that the UK keeps pace with future developments and maximises its international attractiveness to innovators and investors in these dynamic markets."