The UK's new antitrust rules will see Google face its first significant investigation.

• The DMCC Act's Competition and Markets Authority is evaluating whether Google holds "strategic market status" (SMS).
• The designation of a company as having "SMS" would grant the regulator the authority to implement modifications to prevent unethical practices.
• The CMA's chief executive, Sarah Cardell, stated that the regulator was investigating Google's dominance in the search market to maintain a "level playing field."

The UK's competition authority launched an investigation into search services, marking its first significant probe under the nation's stringent new competition laws.

The Competition and Markets Authority is evaluating whether Google holds "strategic market status" (SMS) under the new U.K. Digital Markets, Competition and Consumers Act (DMCC).

The DMCC, effective from January 1, aims to prevent anti-competitive behavior in digital markets by designating a company as having "SMS" and imposing changes.

The CMA's chief executive, Sarah Cardell, stated that the regulator is investigating Google's dominance in the search market to maintain a "level playing field," particularly as AI is changing how people search online.

Cardell stated that it is our responsibility to guarantee that individuals receive the maximum advantage of selection and advancement in search services and are treated fairly, particularly in terms of how their data is gathered and maintained.

She emphasized the importance of a level playing field for businesses, including rivals, advertisers, and news organizations, to succeed.

The CMA's decision to force Google to divest its Chrome browser is a response to the DOJ's bid to break up the internet giant, which was found to have a monopoly in the search market.

On Tuesday, the regulator emphasized Google's dominant position in the U.K. search market as a major concern.

In the U.K., over 90% of general search queries are handled by Google, and more than 200,000 advertisers utilize the company's search advertising tools, as stated by the CMA.

The CMA emphasized that search is "vital" for economic growth and explained that its role in connecting businesses, investors, and customers makes it "critical" for competition to work well.

A Google spokesperson stated via email to CNBC that the company supports millions of U.K. businesses through innovative ways of reaching customers, as recognized by the CMA's announcement today.

The Google spokesperson stated that they will continue to collaborate constructively with the CMA to ensure that new regulations benefit all types of websites and still enable individuals in the U.K. to access helpful and innovative services.

To ensure fair treatment of news publishers for the use of their content, the CMA emphasized the importance of healthy competition in search.

The CMA expressed concern that Google's market position may hinder new and innovative players from gaining a foothold in the market with the emergence of new AI-based search methods like OpenAI and Perplexity.