The United Kingdom’s Competition and Markets Authority announced on Tuesday that it has launched a formal antitrust investigation into Google’s search and search advertising services.
The investigation will determine whether Google holds “strategic market status” under the new Digital Markets, Competition and Consumers Act, which could subject the company to additional regulations and oversight aimed at promoting competition in digital markets.
The Digital Markets, Competition and Consumers Act is designed to curb anti-competitive practices in digital markets by giving regulators the power to intervene if a company is deemed to hold “strategic market status”.
If Google is designated as having SMS, the UK’s Competition and Markets Authority could impose measures to prevent Google from engaging in anti-competitive behavior.
At the time of the announcement, Alphabet, Google’s parent company, had not provided a comment.
The CMA’s chief executive, Sarah Cardell, stated that the regulator’s investigation into Google’s dominance in the search market aims to ensure a “level playing field,” particularly as advancements in artificial intelligence are transforming the way people search online.
“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,” Cardell said.
“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.
The CMA’s investigation comes shortly after the U.S. Department of Justice moved to force Google to divest its Chrome browser, citing the company’s monopoly in the search market.
The DOJ’s legal action seeks to break up Google, arguing that its dominance in search stifles competition.
