The British antitrust watchdog, Competition and Markets Authority (CMA) has filed an investigation into Google’s market dominance in Search.
This is the first investigation in a new legislation. That legislation looks closely at digital markets. Google’s market dominance will be investigated, as well as AI searches. Afterwards, it will decide what measures they can impose to have fair competition.
Three aspects
The investigation allows Google to be designated as a “strategic market player.” This status is subject to stricter competition rules. The watchdog is addressing three major aspects in the investigation. First, the CMA is going to look at whether Google “creates weak competition and barriers to entry and innovation.” Competition is weaker anyway, as Google has the largest market share. Barriers are a question mark because companies like OpenAI offer “answers” as an alternative to search results.
It also examines whether Google favors its own advertising and AI services. Finally, the CMA’s investigation will look at whether Google uses large amounts of consumer data without informed consent.
In the most drastic case, Google Search is split from Google. Another solution could be for Google to open up search results to competitors, reduce search engine integration or make advertising results available to other parties.
This is certainly not the first time Google has had a lawsuit hanging over its head. Late last year, a monopoly lawsuit was filed against the search giant. The European General Court also already condemned Google for abusing its dominant position.