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(Bloomberg)
Alphabet Inc.’s Google is set to face more scrutiny from the UK’s antitrust watchdog over its online search and advertising business.
The Competition and Markets Authority said Tuesday that it had concerns over fairness in its search results, high advertising costs and the way the content is used in AI-generated search responses.
The antitrust watchdog proposed designating Google with so-called strategic market status, a tool that gives it the power to demand information and conduct change from firms. The final decision is expected by October 13, it said.
"The CMA’s proposed SMS designation would include AI-based search features, though not Gemini AI Assistant itself,” the watchdog said in a statement on Tuesday. "This position will be kept under review as usage evolves.”
The announcement presents "clear challenges” to Google’s critical business areas, the company said in a statement.
"We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided.”
Google is already fighting a record €4.1 billion ($4.76 billion) European Union antitrust fine and a US judge is weighing whether to break up the company and to make it sell its Chrome web browser.
The CMA will hold consultations before making a final decision. The possible strategic market status designation will not mean that Google acted anti-competitively but opens the door for measures to address how Google operates search services in the UK, according to the CMA.
