The Competition and Markets Authority (CMA) is starting the year by investigating Google Search under new competition rules that took effect on January 1, 2025. They want to find out if Google has a dominant position in search and search advertising and whether these services benefit UK users and businesses.
The CMA is examining Google’s role in the search market and advertising scene, looking at its effects on consumers, advertisers, news publishers, and other search engines. Google handles about 90% of general search queries in the UK, and over 200,000 local advertisers rely on its search advertising platform.
Because Google’s service is central to many lives and the economy, the CMA is keen to ensure competition remains strong. They argue that healthy competition could lower search advertising costs for businesses—imagine saving nearly £500 per household each year—which could help reduce prices for everyone.
In November 2024, the UK Competition Appeal Tribunal (CAT) approved a £7 billion collective action against Google. This legal case, led by Nikki Stopford from Consumer Voice and Hausfeld & Co LLP, accuses Google of abusing its power to raise advertising costs. Stopford emphasized that Google has been repeatedly warned by regulators but continues to manipulate the market, driving up costs for advertisers and consumers alike. This legal move aims to promote fair competition in the digital space and hold Google accountable.
Over in the US, the Department of Justice is pushing Google to divest its Chrome browser. While the collective action against Google may stretch over several years, the CMA has set an October 2025 deadline for its initial investigation. They’ll evaluate whether Google is stifling competition and innovation, particularly if it’s discouraging other companies from entering the market or shaping new AI services in a way that limits competition against Google Search.
The CMA also plans to scrutinize whether Google is favoring its own services, like shopping or travel search, and if it’s mishandling consumer data without proper consent. They’re concerned about how Google uses publisher content without fair compensation, which is under review.
CMA Chief Executive Sarah Cardell noted that millions depend on Google’s services, highlighting the necessity for these services to deliver positive results. She emphasized the need for a fair playing field where everyone, from major players to small businesses, can thrive especially with AI poised to change the landscape of search. If the CMA finds Google has too much control, it could force the company to share data with other businesses or give publishers more authority over their own data usage.