Google Faces UK Investigation Over Search Dominance: 'We Want To Ensure There Is A Level Playing Field'

Alphabet Inc GOOGL GOOG shares are treading water Tuesday amid reports Google has come under investigation by U.K. officials related to Search dominance.

What Happened: According to a Wall Street Journal report, the Competition and Markets Authority has said it’s probing Google over how its Search position could impact competition in the U.K.

The investigation would reportedly look into the extent of control Google has in Search and search advertising services and assess how Google’s influence might affect consumers and businesses using the services.

The report indicates the current Competition and Markets Authority regime came into force less than two weeks ago. The U.K. has new rules that allow antitrust officials to identify companies with strategic digital market status and impose conduct requirements related to fair competition.

The Competition and Markets Authority will reportedly determine whether Google has strategic market status and then set new requirements for the company based on its findings, if appropriate.

"It's our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal—for example in how their data is collected and stored," said Sarah Cardell, chief executive of the Competition and Markets Authority.

"And for businesses, whether you are a rival search engine, an advertiser or a news organization, we want to ensure there is a level playing field for all businesses, large and small, to succeed."

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In a blog post published Tuesday, Google said it’s looking forward to “engaging constructively” with U.K. officials. The company said its products helped to provide an estimated 118 billion pounds ($144 billion) in economic activity in the U.K. in 2023.

The Competition and Markets Authority investigation comes after the U.S. Department of Justice made a push for Google to divest its Chrome browser in an effort to restore competition in the Search market. Judge Amit Mehta ruled in August that Alphabet's payments to make its search engine the default option on smartphone web browsers violated U.S. antitrust law by effectively blocking competition in the space. 

“A pro-innovation, evidence-based regime will help UK consumers and businesses by expanding options, reducing prices, and opening new markets. The alternative of overly prescriptive digital competition rules would end up stifling choice and opportunity for consumers and businesses,” Google said on Tuesday.

“We will do our best to advocate for new rules that benefit every business and let people in the UK benefit from helpful, cutting-edge services.”

GOOG Price Action: Alphabet Class C shares were down 0.72% at $190.91 at the time of publication, according to Benzinga Pro.

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