Google may have to make changes to its search services in the UK to ensure greater competition, the watchdog has said.
The Competition and Markets Authority (CMA) is investigating the American technology giant under a new law which means the regulator can demand changes at a firm if it is found to hold too much power in a particular market.
Google accounts for more than 90% of searches in the UK and 200,000 businesses use the company’s search advertising to reach customers.
The firm said it would “work constructively” with the CMA but said the announcement presented “clear challenges” to its UK operations.
The CMA said it was not accusing Google of anti-competitive practices at this time, but it has set out a “roadmap” of changes the company could make to its business ahead of a final decision in October.
These could include requiring “choice” screens for users to access different search providers as well as more transparency and control for publishers whose content appears in search results.
The watchdog launched an investigation into Google in January, which it said would look at ensuring fair competition in online search.
Google’s search operations have faced heightened scrutiny by other regulators.
A US judge ruled last August that the company had operated an illegal search monopoly.
It has also faced European Union enforcement action, including a €2.4bn (£2bn) fine for allegedly “self-preferencing” its Shopping comparison service in results.
