LONDON

The UK’s Competition and Markets Authority (CMA) has launched a formal investigation into Google’s search and advertising practices, citing concerns over the tech giant’s dominance in the market and its impact on consumers, businesses, and competitors.

Google currently dominates over 90% of general searches in the UK, according to the CMA, prompting concerns about whether its dominance stifles innovation and competition.

The watchdog revealed on Tuesday that it will examine whether Google has engaged in anti-competitive practices, including blocking rivals from entering the search and advertising markets.

The investigation will also assess potential exploitative behavior in the collection of consumer data, focusing on whether Google obtains this information without proper informed consent.

One of the CMA’s key findings is the high cost of search advertising in the UK, which it estimates at nearly £500 per household annually. The regulator believes these costs could be reduced with more effective competition in the market.

"The CMA is committed to ensuring a level playing field in digital markets," said the watchdog. "This investigation will determine whether Google’s practices harm consumers and businesses by restricting choice and driving up costs."

Another major focus of the inquiry is Google’s alleged favoritism towards its own services.

The CMA will investigate whether the search engine unfairly promotes its shopping and travel platforms over those of competitors, limiting consumer options.

The investigation, expected to take up to nine months, could have significant implications for Google’s business practices. If found in violation of competition laws, Google could be compelled to share its extensive troves of data with competitors and give publishers more control over their content.

This could include protections against the use of their books, newspaper articles, and music in Google’s rapidly expanding artificial intelligence systems.