The UK's Competition and Markets Authority (CMA) has proposed designating Google with 'strategic market status' following an investigation revealing issues in search advertising costs. The CMA noted that Google's search advertising prices are perceived as higher than expected under competitive conditions. Furthermore, the inquiry will assess transparency in search result rankings and the incorporation of publishers' content in Google's responses. With Google controlling over 90% of the UK's search inquiries, the CMA aims to enhance market competitiveness and protect consumer interests through potential regulatory measures.
Google is the world's leading search tool and plays an important role in all our lives... [its] search has delivered tremendous benefits - but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.
CMA has proposed designating Google with 'strategic market status' (SMS) in general search and search advertising, allowing them to impose conduct requirements.
The UK competition watchdog found that Google's search advertising costs are higher than expected, prompting their examination into the search engine's transparency and fairness.
With more than 90% of general search inquiries in the UK handled by Google, the CMA is examining how its practices impact competition and publishers.
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