Competition watchdog launches investigation into Google

Core Viewpoint - The UK Competition and Markets Authority (CMA) has initiated an investigation into Google to evaluate the impact of its search and advertising services on users and businesses, focusing on potential anti-competitive practices and data usage [1][2][4]. Group 1: Investigation Focus - The CMA will assess whether Google has leveraged its dominant market position to hinder competition and if there are barriers preventing new entrants into the market [2]. - A key area of interest is whether Google can influence the development of new AI services and if it prioritizes its own services, such as Google Shopping and Google Flights, over competitors [3][4]. - The investigation will also examine Google's collection and use of consumer data without informed consent, as well as its use of news articles without compensating publishers [4]. Group 2: Market Context - Google holds a significant market share in the UK, answering over 90% of general search queries and hosting more than 200,000 UK advertisers [4]. - The investigation is the first under the new digital markets competition regime that took effect on January 1, which allows the CMA to designate companies with strategic market status and impose new regulations [5][7]. - Effective competition among search engines could potentially reduce advertising costs for search results, estimated at nearly £500 per household per year [7]. Group 3: Global Investigations - The UK investigation follows similar scrutiny in the US and EU, where a federal court ruled that Google maintained an illegal online search monopoly, and the EU is examining restrictions imposed by Google on developers promoting competing services [8].