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LONDON — Britain’s competition watchdog on Tuesday launched an investigation into: google This will be the first major investigation under the country’s tough new competition rules.
The Competition and Markets Authority said it was seeking to assess whether Google had a “strategic market position” (SMS) under the UK’s new Digital Markets, Competition and Consumers Act (DMCC).
The DMCC officially came into force on January 1 and aims to prevent anti-competitive behavior in digital markets. Designating a company as having an “SMS” would give regulators the power to impose changes to prevent anti-competitive behavior.
Sarah Cardell, chief executive of the CMA, said the regulator would seek to rein in Google’s dominance in the search market to ensure a “level playing field”, especially as artificial intelligence is changing the way people search online. He said he was investigating.
“Our job is to make sure people get the most benefit from search service choice and innovation, and to make sure they get a fair deal on, for example, how their data is collected and stored,” Cardel said. Ta.
“And for businesses, whether it’s a rival search engine, an advertiser or a news organization, we want to ensure a level playing field for all businesses, large and small, to succeed. ” she added.
The CMA’s move follows the US Department of Justice’s bid to force Google to sell its Chrome browser. The Justice Department has determined that the Internet giant has a monopoly on the search market and has filed to break up the company.
The regulator on Tuesday highlighted Google’s dominant position in the UK search market as a key concern.
According to the CMA, Google accounts for more than 90% of common search queries in the UK, and more than 200,000 advertisers in the country use its search advertising tools.
The CMA said search was “vital to economic growth” and its role in connecting businesses with other businesses, investors and customers meant it was “crucial” that competition worked well. Explained.
“Google Search helps millions of UK businesses grow by reaching customers in innovative ways. Today’s CMA announcement recognizes that,” a Google spokesperson said. told CNBC via email.
A Google spokesperson said: “We are working constructively with the CMA to ensure the new rules benefit websites of all types and ensure people in the UK benefit from convenient, cutting-edge services. I will continue,” he added.
In a blog post published late Tuesday, Google called for a “pro-innovation, evidence-based regime” in the UK, saying “overly prescriptive digital competition rules ultimately stifle choice and opportunity for consumers and businesses. It will happen,” he added.
We will do everything we can to advocate for new rules that will benefit all businesses and ensure people in the UK benefit from convenient, cutting-edge services.
The CMA added that effective competition in search is necessary to ensure fair treatment of news publishers’ use of content.
The CMA also said it was concerned that Google’s position in the market could put new, innovative players at a disadvantage as new AI-based search methods emerge, such as OpenAI and Perplexity.
