Britain's competition watchdog, the Competition and Markets Authority, announced on Tuesday that it has launched an investigation into Google's search ad business. This move adds to the growing global scrutiny that the U.S. tech giant is currently facing.
The investigation will focus on whether Google is engaging in practices that weaken competition by stifling innovation, favoring its own services, or exploiting user data. The watchdog will utilize new powers to assess competition in digital markets and determine if Google should be designated as having 'strategic market status,' which could lead to remedies being imposed to change its behavior.
Of particular concern is Google's influence on the development of new artificial intelligence services and interfaces, such as 'answer engines,' which could potentially limit the competitive pressure on Google Search.
AI-powered chatbots have gained popularity among internet users seeking information online. Google's recent adjustment to its search engine now often prioritizes responses generated by artificial intelligence over traditional website links.
In response to the investigation, Google stated that it will collaborate with the CMA to ensure that any new regulations benefit all types of websites while still allowing U.K. users to access innovative services.
The chief executive of the U.K. regulator emphasized the importance of fair competition in the context of AI's transformative potential for online search services. Ensuring that users have access to a variety of choices and innovations in search services, as well as fair treatment regarding data collection and storage, is a key objective for the CMA.
Furthermore, the CMA will also scrutinize Google's practices of collecting extensive consumer data without informed consent and using content from online publishers without adequate compensation.
This investigation in the U.K. is part of a broader trend of regulatory pressure facing Google on both sides of the Atlantic. Authorities in the U.S. and Canada have filed lawsuits against Google, alleging anticompetitive behavior in the digital ad industry and advocating for the company's breakup. European Union regulators are conducting their own antitrust probe and have indicated a potential requirement for Google to divest parts of its business to address concerns related to its lucrative digital ad operations.
