Google Search may need to give U.K. consumers more choice to pick an engine for online services, as competition in the space increases and generative artificial intelligence (GAI) plays a major role in searches and services.
The Competition and Markets Authority (CMA) proposed Google's general search and advertising businesses fall within the “strategic market status” (SMS), which would give it authority to investigate it under a new law.
Under the new law, if the CMA designates Google with the status of SMS, it gives regulators the power to review its competition and possibly demand change. This law would apply to any company the watchdog felt holds too much power in one market.
Google accounts for more than 90% of searches in the U.K. and 200,000 businesses use the company's search advertising to reach customers, according to the CMA.
U.K. consumers have suffered from weak competition, meaning they pay too much for products and services, a sentiment that the watchdog has determined for years.
In the U.K., the average person conducts between five and 10 searches daily, and businesses spend an average of £33,000 a year on Google advertisements, according to the CMA.
CMA CEO Sarah Cardell believes Google search has delivered "tremendous benefits," but the watchdog’s investigation suggests there are ways to make markets more open, competitive and innovative.