The UK’s competition watchdog has launched an investigation into whether Google has too much power in online search.
Google accounts for 90% of UK web searches – the Competition and Markets Authority (CMA) is looking at whether it is using that dominant position to harm competition or choice for users.
It is its first investigation after gaining new powers to investigate and enforce changes at firms it determines to have “strategic market status” in digital markets.
The CMA says it wants to ensure the tech giant is “delivering good outcomes for people and businesses” and that there is a “level playing field” for rivals.
Google says it will cooperate with the investigation but has warned against what it calls “overly prescriptive digital competition rules.”
In a statement Google said: “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.”
It is the latest in a series of investigations Google faces worldwide.
In the US, the government wants it to sell its browser, Chrome, to address what a judged ruled was its illegal monopoly in search and related advertising.
The CMA says potential changes it could impose include sharing data Google collects with other businesses, or giving publishers more oversight of how their data is used for its artificial intelligence (AI) features.
“Millions of people and businesses across the UK rely on Google’s search and advertising services,” said Sarah Cardell, the CMA’s chief executive on Tuesday.
“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.” she added, especially given the potential for AI to “transform” the market.
The CMA’s announcement of its Google search and advertising investigation follows the digital market competition regime coming into force in January.
It gives the CMA powers to investigate firms it believes may dominate or occupy a key strategic position in a certain sector.
An explainer on its website says a company must meet several conditions before it can be determined to have “strategic market status”.
These include having a UK turnover of more than £1bn or global turnover of £25bn, occupying a position of strategic significance or “entrenched market power” in relation to a certain digital activity.
The CMA says it will look at whether Google is using its position in search to prevent rivals from innovating or entering the market, or if it is “self-preferencing” its own services.
It will also look at whether Google is collecting large amounts of user data without proper, informed consent.
“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,” said Ms Cardell.
It will have nine months to carry out its investigation and two options at its disposal if it finds Google to have strategic market status – imposing rules on how it behaves, or making interventions designed to boost competition.
Pinar Akman, professor of law at the University of Leeds, says it is “highly likely” the CMA will launch further, similar investigations under the Digital Markets, Competition and Consumer (DMCC) Act in coming months.
“There is a general trend of regulating digital markets with large players around the world and the DMCC Act represents the UK’s response to that growing trend,” she told BBC News.
Prof Akman added that the regime offers more flexibility than regulation such as the EU’s Digital Markets Act in tailoring any interventions or requirements to market specifics.
It comes after the Prime Minister Sir Keir Starmer lauded AI’s “vast potential” to transform public services.
In a speech on Monday, Sir Keir said recommendations from the AI Opportunities Action Plan – a set of proposals backed by several tech firms – would be implemented across a range of areas to help grow the economy and make AI “work for working people”.
