The U.K. competition watchdog, the Competition and Markets Authority (CMA), has launched its first significant investigation under the new Digital Markets, Competition, and Consumers Act (DMCC). This investigation will focus on Google’s search services.

The DMCC, which took effect on January 1, aims to curb anti-competitive behavior in digital markets. If Google is found to have “strategic market status” (SMS), the CMA will have the authority to take action and impose changes to prevent any unfair practices.

Sarah Cardell, the CMA’s chief executive, stated that the investigation is mainly looking at Google’s dominance in the search market. She emphasized the need to ensure fair competition, especially with artificial intelligence changing how people use search engines.

“It’s our job to ensure people get the full benefit of choice and innovation,” said Cardell. She added that businesses of all sizes—whether in search, advertising, or news—should have a fair chance to succeed.

This investigation follows a move by the U.S. Department of Justice, which has been pushing to break up Google, claiming the company holds a monopoly in the search market.

Google currently controls over 90% of general search queries in the U.K. Additionally, more than 200,000 advertisers in the country use Google’s search advertising tools.

The CMA pointed out that search plays a key role in driving economic growth. It’s essential that competition remains fair so businesses can reach customers and investors effectively.

In response, Google defended its market position. A spokesperson for the company stated that it supports competition but warned that too much regulation could limit consumer choice and harm businesses.

The CMA also noted that Google’s dominance could be impacting news publishers. With new AI-powered search tools like OpenAI and Perplexity emerging, the regulator is concerned that these innovations might be at a disadvantage in the market.

The investigation is still in the early stages, but the CMA’s actions could significantly impact the way the U.K. search market develops.

SOURCE: CNBC | PHOTO: BLOOMBERG