Google’s Search Business Faces UK Antitrust Investigation

Google is the first tech company investigated under the United Kingdom’s new competition law.

The Competition and Markets Authority (CMA) began its first strategic market status (SMS) designation investigation under the new digital markets competition regime, which came into force at the start of the year, according to a Tuesday (Jan. 14) press release.

The CMA will examine Google’s position in search and search advertising services and how this affects consumers and businesses such as advertisers, news outlets and rival search engines, per the release.

“Given the importance of search as a key digital service for people, businesses and the economy, it is critical that competition works well,” the release said. “Effective competition ensures people benefit from greater choice, new and innovative services, and have control over their data.”

“People across the UK trust Google Search to help them find what they need,” the company said in a statement provided to PYMNTS. “Google Search supports millions of UK businesses to grow by reaching customers in innovative ways. The CMA’s announcement today recognizes that: “Search is vital for economic growth”. We will continue to engage constructively with the CMA to ensure that new rules benefit all types of websites, and still allow people in the UK to benefit from helpful and cutting-edge services.”

Google accounts for 90% of all search queries in the U.K., and more than 200,000 advertisers use its search advertising, according to the release. Effective competition could lower the costs of search advertising, equivalent to nearly 500 pounds (about $610) per household per year, in turn reducing prices across the economy.

Under the new competition rule, the CMA can designate companies with SMS in connection to a particular digital activity and impose conduct requirements or propose pro-competition measures to “achieve positive outcomes for U.K. consumers and businesses,” the release said.

The CMA’s investigation will also examine whether to impose conduct requirements. A decision is expected by October, and possible remedies include requiring Google to let other businesses access the data it collects, according to the release.

The news came one week after the CMA announced it would be launching a series of investigations under the new competition regime.

CMA CEO Sarah Cardell said the law “provides a unique opportunity to harness the benefits of investment and innovation from the largest digital firms whilst ensuring a level playing field for the many startups … across the U.K. tech sector.”

Last year, a CMA study found that the mobile ecosystem policies of Google and rival Apple were “holding back innovation” in the U.K. and recommended the consideration of a formal investigation into the two tech giants.