CMA consults on Google’s search dominance

Under the Digital Markets Competition Regime, the Competition and Markets Authority (CMA) has proposed to designate Google with “strategic market status” (SMS).

Google Search accounts for more than 90% of all general search queries in the UK, with millions of people relying on it as a key gateway to the internet and more than 200,000 businesses in the UK relying on Google Search advertising to reach their customers. These services matter to our economy and society, so it’s vital that competition works well.

The CMA has been looking into the difficulty alternative internet search providers face due to Google’s dominance in search advertising. A consultation on the proposal will take place ahead of a final decision in October. If the CMA’s proposed designation of Google as an SMS goes ahead, among the actions it plans to take is requiring Google to offer choice screens for users to access different search providers. It would also stipulate that Google offers fair ranking principles for businesses appearing on its search engine, and the company would need to provide more transparency and control for publishers whose content appears in search results.

It’s also looking to ensure portability of consumer search data to support innovation in new products and services.

Beyond the actual search engine, the CMA said it’s also considering the impact of generative AI on internet search. The CMA said its proposed SMS designation would include AI-based search features, though not Gemini AI Assistant itself. However, it plans to review this further.

“Google is the world’s leading search tool and plays an important role in all our lives, with the average person in the UK making five to 10 searches a day,” said Sarah Cardell, chief executive of the CMA. “It is equally critical for over 200,000 UK businesses which rely on Google to reach their customers. Google Search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.

“These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy,” she said.

Along with the CMA consultation, Google is facing a number of legal cases in the UK. In April, UK-based legal professor Or Brook filed a class action against Google worth approximately £5bn in the UK Competition Appeal Tribunal (CAT). The class action, brought on behalf of hundreds of thousands of UK-based organisations that used Google’s advertising services, accuses the firm of abusing its near-total dominance in the general search market to drive up prices.

Another case, filed by Nikki Stopford, co-founder of Consumer Voice, is focused on the cost to consumers due to increased advertising costs businesses that use Google Search pay as a result of anti-competitive practices.

In November last year, Google’s attempt to throw out Stopford’s case was dismissed, paving the way for the case to be heard at the CAT.