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CMA to investigate Google search and search advertising

ended 14. January 2025

The Competition and Markets Authority (CMA) is investigating whether to designate Google as having strategic market status (SMS) in respect of its provision of general search and search advertising services. Read all about it >> here <<. Any thoughts, whizz them across.

4 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
I welcome the Competition and Markets Authority's scrutiny of Google’s market position in search and advertising. As a user of Google Ads, we frequently encounter larger institutions like banks bidding on niche search terms that target individuals in complex financial situations—customers they often cannot adequately serve. This practice not only diverts these individuals from appropriate, specialist expertise but also restricts smaller firms like ours from achieving fair market visibility. A more level playing field in digital markets would lead to better customer outcomes, lower costs, and healthier competition. The CMA’s efforts are a vital step in ensuring fairer opportunities for businesses and improved services for consumers
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Ben Foster
CEO at The SEO Works
This feels like a reaction to the USA's Department of Justice case against Google. However I don't think the investigation will result in anything significant. Google will have the best legal representation and they will find ways to challenge and delay any outcome. Their argument will evidence the multiple ways that they support the economy, allow competition through their shopping adverts, and enable the growth of many businesses. It will be a long, drawn out process lasting years.

There are similarities to the US government's antitrust lawsuit against Microsoft in the 1990s. Microsoft was accused of anti-competitive practices aimed at maintaining their dominant market position. In 2000, a judge ruled in favour of the DOJ, ordering Microsoft to be split into two separate companies. However, Microsoft successfully appealed the decision in 2001, and the Justice Department dropped the case.
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Keith Budden
Managing Director at Ensurety
I think this is a case of too little too late, not such a case of shutting the door after the horse has bolted but shutting the door after the horse has moved to a whole new town.

Had this investigation been launched a year ago I would have said yes, it was 100% needed as Google was showing signs of abusing its position with regard to search results, paid ads etc. However that was then, now, more and more people I know are using ChatGPT, Claude or other AI platforms to do the searches they would previously have used Google for. Add on to that the increasing use of voice search rather than typed search and I think the chances are that Google no longer holds the monopolistic position that it did.

All that being said, anything to increase competition in the online natural listing and paid-ads space has to be welcome. Hopefully this will eventually lead to lowering the cost to market for SMEs and industry generally.
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Richard O'Connor
Director at First Mats
As a search engine marketer with 20+ years’ experience and founder of an online-only business, First Mats, I know how crucial Google is—over 90% of our visitors come through it. While focusing on one platform is convenient, it means playing by Google’s increasingly expensive rules. Our CPC advertising costs have risen 20% in the past year, making it harder for smaller businesses to compete.

Google’s dominance isn’t just about being the best; it’s also the default on so many devices. Generative AI is already changing search, offering direct answers instead of endless website lists, which could shake things up. If the CMA can make it easier for people to use other search engines without compromising user experience, it could create fairer competition and lower costs for businesses like mine, while encouraging innovation.