The UK’s competition watchdog is using its new powers to assess the position of one of the world’s most dominant global tech companies, Google, in its dominance over search.

The Competition and Markets Authority (CMA), with new powers that came into effect at the start of this year, is able to designate companies with strategic market status (SMS) in relation to a particular digital activity.

Once designated, the CMA can impose conduct requirements or propose pro-competition interventions to achieve positive outcomes for UK consumers and businesses.

The CMA will assess whether Google has SMS in the UK search and search advertising sectors, and, in parallel, consider whether conduct requirements should be imposed in the event of a final designation decision.

While the CMA acknowledges the “significant benefits” Google’s services have generated for the UK, it also notes the company’s dominance.

In the UK, Google accounts for more than 90% of all general search queries and more than 200,000 UK advertisers use Google’s search advertising.

“That’s why it’s so important to ensure these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services,” Sarah Cardell, chief executive for the CMA, said.

“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.

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

Search tools are vital for commerce in the modern era, facilitating business growth and connection, as well as generating a wealth of data that can be used to develop a new AI products and services to foster innovation.

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Given the importance of search as a key digital service for people, businesses and the economy, it is critical that competition works well.

The CMA’s investigation will focus on a range of issues, ranging from weak competition and barriers to entry and innovation in search, as well as Google’s possible leveraging of market power.

It will also investigate Google’s potential for exploitative conduct, which involve the collection and use of large quantities of consumer data without informed consent, and the use of publisher content without fair terms and conditions (including payment terms).

The competition watchdog has also outlined potential conduct requirements ahead of the pending SMS qualification, which could include requirements on Google to make the data it collects available to other businesses or giving publishers more control over how their data is used including in Google’s AI services.