“The investigation will examine Google’s position in search and search advertising services and how this affects consumers and businesses, including advertisers, news publishers, and rival search engines,” the Competition and Markets Authority said in a statement. ” Press release.
What is DMCCA?
The DMCCA, which came into force on January 1, is designed to regulate the behavior of large digital firms with significant market power in the country. It gives the CMA new powers to impose requirements on tech companies with “strategic market status”, which it recalls. “Gatekeeper” organizations. Which should be followed. The EU’s Digital Markets Act.
To investigate Google, the CMA will look at whether it is using its position to block others’ innovation, such as withholding resources or designing AI services to limit what it can do. How competing search engines can create equivalent features. The CMA will also examine whether a tech company is using its dominant position to prioritize its search services (such as for shopping or travel), collecting and using user data without informed consent. , and using publisher content without fair terms and conditions.
See: The UK government says Google is abusing its dominant position in the ad-tech sector.
The DMCCA gives new enforcement powers to a group within the CMA called the Digital Markets Unit. It will create a unique set of behavioral requirements for each company designated as an SMS, which they must adhere to in order to prevent anti-competitive practices from occurring even before they are exposed. Additionally, the DMU may undertake “pro-competitive interventions” that will proactively address adverse effects on a company’s competitiveness that arise from its disproportionate market power.
Behavioral requirements for Google could include forcing it to make user data available to competitors or giving publishers more control over how their data is used, including in Google’s AI services. The CMAS may continue to modify the SMS after completing its investigation.
Firms nominated for SMS must have digital activity, strategic importance, and either a global turnover of more than £25 billion or a UK turnover of more than £1 billion. The CMAS will investigate each firm before applying for SMS status, which usually takes nine months. In Google’s case, a decision will be made by October 2025, while interested parties can submit comments until February 3.
In August, The CMA rejected Google’s proposed policy changes. about in-app purchases listed on its Play Store, which prompted the investigation. He suggested that the company would be one of the first to receive the SMS because, if the CMA accepts the changes, it will limit what actions it can take under the DMCCA.
Search and search advertising, where an advertiser pays for their ad to appear next to a user’s search results, is the first of two areas of digital activity that the CMA this month investigates the position of SMS. will start.
See: Regulator CMA to scrutinize Microsoft and other cloud service providers in the UK
CMA Chief Executive Sarah Cardell said in a press release, “Millions of people and businesses across the UK rely on Google’s search and advertising services – with 90% of searches on their platform and more than 200,000 U. businesses advertise there.” release
“That’s why it’s so important to make sure these services are delivering good results for people and businesses and that there’s a level playing field, especially as AI has the potential to transform search services. ”
The EU and US also take issue with Google’s competitive practices in search.
In March 2024, Google temporarily removed some search widgets, such as Google Flights, to allow more access to individual businesses. In response to the coming into force of the EU’s Digital Markets Act.
However, just a few weeks later, the E.U Initiated ongoing non-compliance investigation.As regulators claim it is promoting its services above third parties in search results. In December, Google announced Several other changes to its search features to comply with the Act.
In September 2024, the European Court of Justice 2.42 billion euro fine upheld against Google for violating EU antitrust laws by favoring its comparison shopping service, Google Shopping, in search results.
Additionally, in August 2024, a federal judge ruled that the tech company had a monopoly on general search services. and text ads, violate antitrust laws in the United States.
However, Google isn’t going down without a fight. Tech company with success Eliminated a €1.5 billion antitrust fine It received an order from the European Commission in 2019 to stop third parties using its AdSense platform from showing competing ads next to Google search results.
Google was also fined 4.34 billion euros by the European Commission in 2018 for abusing its dominance by pre-installing Google Search on Android devices, but has since An appeal was extended In the European Court of Justice.