The Competition and Markets Authority (CMA) has officially begun its first strategic market status (SMS) designation investigation under the new digital markets competition regime, which took effect on January 1, 2025. This investigation will evaluate Google's dominance in search and search advertising services, examining how this affects consumers, businesses, advertisers, news publishers, and competing search engines.

Google's search services are crucial for millions in the UK, accounting for over 90% of general search queries and serving more than 200,000 advertisers. The CMA emphasizes the importance of effective competition in this sector, as it not only provides consumers with greater choice and innovative services but also plays a vital role in economic growth by connecting businesses and facilitating access to information.

The CMA's investigation will explore several key issues, including the state of competition in the search market, potential barriers to entry for new competitors, and whether Google is leveraging its market power to self-preference its own services. Additionally, the investigation will assess the implications of Google's data collection practices and the fairness of terms offered to publishers regarding their content.

Possible outcomes of the investigation could include conduct requirements for Google, such as mandates to share collected data with other businesses or to provide publishers with more control over their data usage. The CMA aims to conduct a thorough and transparent investigation, engaging with various stakeholders and gathering evidence from Google, with a deadline for completion set for October 13, 2025.

Sarah Cardell, Chief Executive of the CMA, highlighted the significance of ensuring that Google's services deliver positive outcomes for users and businesses alike, particularly in light of the transformative potential of AI in search services. The CMA's investigation aligns with similar scrutiny of Google's practices by authorities worldwide, including in the US, Europe, and Australia.