UK's CMA Investigates Google's Search Dominance Amid Global Big Tech Scrutiny
The UK's Competition and Markets Authority (CMA) is investigating Google's dominance in search, as part of a global trend of countries exploring ways to make Big Tech pay for news. The CMA's approach is seen as stronger than others, focusing on formal designation and fair negotiation.
Google's search engine, which accounts for over 90% of all general search queries in the UK, with users making between five and ten searches daily, is the subject of the CMA's investigation. Independent news publishers struggle with significant traffic losses due to Google's algorithms, with some losing up to 90% in a year. Google profits from news content, using it to drive digital advertising and fuel AI, but does not fairly compensate publishers. Google downplays news' value, claiming a European experiment showed minimal impact on usage and ad revenue when news was removed.
The CMA is investigating Google for having a 'Strategic Market Status' (SMS) in general search services, essentially examining Google's search monopoly. If SMS is confirmed, the CMA can impose tailored, time-limited measures to open up markets, ensure fair competition, and potentially levy fees to fund regulatory activities. The CMA is expected to investigate Apple similarly for its market power in mobile platforms and search services. The final decision on Google's designation is due in October, with potential remedial measures to counteract its dominance.
The CMA's investigation into Google's search dominance is part of a global effort to address Big Tech's impact on news industries. If Google is designated with SMS, the CMA can impose bespoke measures to promote competition and protect consumers over a 5-year period, potentially including fees to fund regulatory activities.
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