Key Takeaways:

• The UK's Competition and Markets Authority (CMA) has begun an investigation into Google's search ad business.
• The investigation will assess Google's dominance in the market and its collection of user data.
• Google currently holds approximately 90% of the UK search market.
• This move is part of broader regulatory scrutiny on Google affecting its operations globally.
• The CMA has new powers to grant "Strategic Market Status" to firms impacting digital competition.

LONDON - The UK’s Competition and Markets Authority (CMA) announced on Tuesday it would investigate Google’s search advertising business amid growing concerns over the tech giant's market dominance. The inquiry marks the CMA's first substantive investigation utilizing its new authority to enforce changes in companies it deems to hold "strategic market status" in digital markets.

Google currently commands around 90% of all web searches conducted in the UK, raising alarms about its potential to stifle competition and innovation in search services. The CMA's probe will particularly focus on how Google shapes the development of artificial intelligence (AI) features and whether it prefers its own services over those of competitors, limiting the overall choices available to users.

Sarah Cardell, chief executive of the CMA, emphasized the significance of maintaining a robust competitive landscape, stating, "Millions of people and businesses across the UK rely on Google's search and advertising services." She highlighted the role of fair competition in ensuring all types of businesses, from rival search engines to news organizations, can succeed and innovate.

The inquiry will examine the extent of Google's data collection practices and whether users provide informed consent regarding their information. Google has publicly committed to cooperating with the CMA, asserting that it aims to create a level playing field that benefits users and various types of websites.

This investigation is part of a broader global push against Google, which faces similar scrutiny from regulators in both the U.S. and Canada, seeking to address issues of antitrust and market manipulation in online advertising. The CMA expects the review process may take up to nine months, during which the implications of Google's strategic market position will be fully assessed.

As the digital landscape evolves, the question remains whether Google's practices warrant further regulatory intervention aimed at promoting competition and fair practices in the tech industry.

For further details, visit the original articles on AP News, BBC, and Reuters.