The UK Competition and Markets Authority (CMA) has opened an investigation into Google’s role in the UK’s search and search advertising markets, marking the first strategic market status (SMS) designation inquiry under the new digital markets competition regime. This framework, introduced on 1 January 2025, grants the British competition watchdog new powers to regulate dominant firms in key digital activities.
Google’s search engine dominates the UK, accounting for more than 90% of all general search queries. Its search advertising platform is widely used by over 200,000 UK advertisers. Search services are also a gateway for accessing news content, playing an essential role in how individuals and organisations interact with online information.
The investigation will examine whether Google’s market position creates barriers to entry for competitors and stifles innovation. A key focus is whether Google’s development of AI services, including emerging “answer engines,” limits competition by shaping the market to its advantage. The CMA will also scrutinise any practices that could prevent new entrants from establishing themselves in the search and advertising sectors. Another area of inquiry is whether Google leverages its dominance to prioritise its own services, such as specialised search products for shopping and travel. The CMA will also investigate claims of exploitative practices, including the collection and use of consumer data without proper consent and the use of publisher content under unfair terms.
“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 CMA Chief Executive Sarah Cardell. “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.”
If the CMA determines that Google holds strategic market status, it could impose measures to promote competition. Potential remedies might include requiring Google to share data with rivals or granting publishers greater control over how their content is used, particularly in AI applications. The CMA has committed to a proportionate and transparent approach, with a decision expected by October 2025.
Google’s global regulatory pressure
The CMA’s inquiry comes amid intensified scrutiny of Google’s practices worldwide. In the US, the Department of Justice (DoJ) is pursuing antitrust actions against Google, including a proposal to divest its Chrome browser and end exclusive agreements that maintain Google as the default search engine on platforms like Apple’s devices. A trial in this case is set for April 2025. Similarly, in Canada, the Competition Bureau has accused Google of anti-competitive behaviour in the digital advertising technology sector. The regulator alleges that Google’s practices in the “ad tech stack” have suppressed competition and reinforced its dominance.
The CMA has invited stakeholders, including advertisers, publishers, and consumer groups, to provide input on the investigation by 3 February 2025. The statutory deadline for the inquiry is 13 October 2025, with findings expected to influence future regulatory approaches to digital markets.
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