The UK's Competition and Markets Authority (CMA) has launched an investigation into Google's search advertising business, amid growing global concerns about the tech giant's competitive practices. This inquiry will assess whether Google is stifling innovation, favoring its own services, or misusing user data.
Utilizing new powers under the digital markets competition regime, the CMA aims to determine if Google should be designated with 'strategic market status.' This designation could lead to enforced changes in Google's behavior, particularly regarding its AI-powered search services that increasingly prioritize AI-generated responses over traditional website links.
Sarah Cardell, Chief Executive of the CMA, emphasized the importance of fair competition, stating that it is crucial for consumers to have access to diverse and innovative search options while ensuring their data is handled responsibly. The investigation will also scrutinize Google's vast data collection practices and its use of publisher content without adequate compensation.
This investigation reflects a broader regulatory trend, as authorities in the US, Canada, and the European Union are also targeting Google's advertising practices, citing concerns over anti-competitive behavior. The CMA's findings, expected by October 2025, could have significant implications for Google's operations and the digital advertising landscape.