UK's competition regulator to investigate Google amid concerns

Google is being investigated by the UK’s competition watchdog amid concerns about its dominance of the internet.

The Competition and Markets Authority said it will examine whether the US tech firm is providing ‘good outcomes for people and businesses’.

It will also assess how Google’s influence over the flow of information and its control over web advertising affects news publishers and rival search engines.

The CMA further said it will investigate whether Google is using its market position to stifle competition, particularly in areas such as artificial intelligence, as well as how it uses the trove of data it generates from those using its services.

The CMA could designate Google as having ‘strategic market status’ (SMS), meaning it would be subject to tougher rules on how it conducts business in the UK.

A company obtains SMS if its UK sales are more than £1billion, or if it generates worldwide sales of over £25billion, and it is considered to have a ‘substantial and entrenched’ position in the market in which it operates. 

The classification could see the company told to abide by a code of conduct which may include forcing it to share the data it collects with rivals. 

If it breaks these rules, the firm could face fines of up to 10 per cent of its global sales.

CMA head Sarah Cardell said: ‘It’s important to ensure [Google’s search and advertising services]are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services.’

In the UK 90 per cent of internet searches are made through Google, and more than 200,000 businesses use its advertising services.

The tech giant has been criticised previously for trying to use its dominance of the search engine market to gain an advantage in the field of AI.

Media firms will be keenly awaiting the result of the CMA probe, which will examine whether Google has been guilty of ‘potential exploitative conduct’, including leveraging its market position to use publisher content without fair terms and conditions or payment.