The tech industry's regulatory landscape continues to evolve as we enter 2025, with major players facing increased scrutiny over their market dominance. The latest development comes from the United Kingdom, where Google faces a significant new challenge to its search engine supremacy.
New Investigation Under Fresh Legislative Framework
The UK's Competition and Markets Authority (CMA) has initiated a comprehensive investigation into Google's search services under the newly enacted Digital Markets, Competition and Consumers Act (DMCC). This legislation, which came into effect on January 1, 2025, represents a strengthened approach to regulating tech giants and protecting market competition.
Scope of the Investigation
The CMA's investigation centers on determining whether Google should receive Strategic Market Status (SMS) in search and search advertising markets. This assessment carries significant implications, as an SMS designation would subject Google to specific conduct requirements and pro-competition interventions. The investigation particularly focuses on Google's role in AI-based search and advertising, examining potential barriers to innovation and market entry for competitors.
AI and Competition Concerns
A key aspect of the investigation revolves around artificial intelligence's transformative potential in search services. The CMA aims to ensure that Google isn't leveraging its dominant position to unfairly advantage its AI developments while hindering competitors. This comes at a crucial time when AI technology is reshaping how users interact with search engines.
Market Impact and Timeline
With Google commanding approximately 90% of general search inquiries in the UK and serving over 200,000 businesses through its search advertising services, the investigation's outcome could have far-reaching implications. The CMA has set a statutory deadline of October 13, 2025, for concluding the investigation, with an initial public comment period ending February 3, 2025.
Market Statistics:
- Google's UK Search Market Share: ~90%
- Number of UK Businesses Using Google Search Advertising: 200,000+
Google's Response
Google has maintained a cooperative stance, emphasizing its positive impact on UK businesses and commitment to constructive engagement with regulators. The company highlights its role in supporting millions of UK businesses through innovative customer reach solutions while expressing willingness to work within new regulatory frameworks that benefit all stakeholders.