UK’s CMA Takes Aim at Google’s Search Engine Dominance – Will Big Tech Finally Crack?

Britain's antitrust watchdog just drew a line in the sand—and it's pointing straight at Google's 90%+ search monopoly.

The Competition and Markets Authority (CMA) isn't playing nice anymore. Their latest move? Forcing Alphabet to loosen its death grip on search results before the next UK election cycle heats up.

Here's the kicker: This isn't just about fair competition. It's about forcing Big Tech to stop pretending their 'don't be evil' mantra wasn't abandoned years ago—right around the time their ad revenue started outpacing small nations' GDPs.

Will it work? History says regulators move at dial-up speeds while tech giants operate on quantum fiber. But with the EU's Digital Markets Act as a blueprint, even Google might need to rethink its 'search dominance as a human right' philosophy.

Meanwhile in finance: Hedge funds are already shorting 'GOOG' while simultaneously bidding on CMA regulator LinkedIn profiles—because nothing says market efficiency like betting on both sides of government intervention.

Regulator accuses Google of using market power to stifle competition

A final decision is expected to come by October following a public consultation. However, it does not seem like Google is willing to let the attack slide.

The search engine company has tagged the proposals “broad and unfocused,” even claiming they could threaten the UK’s access to its latest products and services.

The Big Tech giant was one of the first companies to be targeted under strict new digital laws, which require businesses with an outsized impact in certain digital markets to be granted the SMS label and subjected to specific rules.

The CMA’s investigation, which began in January, has been trying to determine whether Google’s position in search and advertising is “delivering good outcomes” for people and businesses in the UK.

It found that Google’s dominance actually makes the cost of search advertising “higher than would be expected” in a more competitive market.

CMA Chief Executive Sarah Cardell concedes that Google’s search engine has delivered significant benefits; however, the regulator sees opportunities to make the market more competitive and innovative.

Other key proposals the CMA is considering include: requirements in how it ranks its search results and for Google’s distribution partners, who include Apple, to offer “choice screens” which could help people more easily switch between search providers instead of being offered the world’s most used search engine by default.

Google’s senior director for competition, Oliver Bethell, called the scope of the CMA’s considerations broad and unfocused, with a range of interventions being considered.

According to him, “punitive regulations” could alter how quickly Google launches new products in the UK and ultimately become a roadblock to growth.

Google struggles to stave off EU antitrust fines

The CMA’s proposed enforcement draws comparisons to the EU’s Digital Markets Act (DMA), which has imposed stricter rules and hefty fines on the search engine giant for similar reasons.

Some months ago, the European Commission accused Google of favoring its own services over rivals in breach of the Digital Markets Act (DMA). In response to that, Google proposed more changes to its search results to better showcase rivals.

Under the new proposal, a vertical search service (VSS) selected on objective and non-discriminatory criteria would get its own box at the top of the search page with the same format, information and features as Google’s.

The box would contain three direct links picked by the VSS, to hotels, airlines, restaurants and transport, while other VSS, which are specialized search engines within Google, would be ranked below but without a box unless users click on them.

“We do not agree with the (Commission’s) preliminary findings’ position but, on a without prejudice basis, we want to find a workable solution to resolve the present proceedings,” the documents sent by both Google and the Commission to the rivals read.

The proposals to adjust search result displays have been deemed insufficient by competitors. The CMA’s approach is described as more targeted than the EU’s, even though concerns remain about enforcement effectiveness and Google’s ability to adapt without significant market share loss.

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