London: The UK’s Competition and Markets Authority (CMA) has warned Google it may need to overhaul its search services to encourage fairer competition in the digital marketplace.
The move comes as part of an ongoing investigation under the UK’s new digital markets legislation, which allows the CMA to implement changes if a company is found to wield excessive power in a specific sector. Google currently controls over 90 percent of the UK’s online search traffic, with around 200,000 businesses relying on its search advertising tools to reach customers.
While the watchdog has stopped short of accusing the tech giant of anti-competitive behaviour, it has issued a roadmap of proposed changes aimed at opening up the market. These include the introduction of choice screens to allow users to select from multiple search providers and increasing transparency for content publishers whose material appears in search results.
CMA chief executive Sarah Cardell stated that, “Google Search has delivered tremendous benefits, but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.” Sarah Cardell described the proposed interventions as targeted and proportionate, aimed at giving consumers and businesses in the UK more control and options.
In response, Google US-based Alphabet criticised the proposals as broad and unfocused but confirmed it would engage constructively with the CMA.
The watchdog highlighted that UK consumers conduct between five and 10 searches daily, while businesses spend an average of $44,817 (£33,000) annually on Google ads. It argued that better competition could drive down these costs.
The CMA launched its investigation in January and is expected to deliver a final decision by October. The inquiry follows a string of regulatory challenges Google has faced globally, including a fine from the European Commission and a US court ruling last year that the company had maintained an illegal search monopoly.
Google has yet to confirm whether it will accept the proposed measures, but the CMA has signalled it is prepared to act decisively if necessary.
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