Google accounts for 90 per cent of web searches in the UK, and the inquiry will examine if it is exploiting this position unfairly.

It marks the CMA’s first investigation under new powers granted by the Digital Markets, Competition and Consumer Act, designed to tackle firms with “strategic market status” in digital industries.

Sarah Cardell, the CMA’s chief executive, said: “Millions of people and businesses across the UK rely on Google’s search and advertising services. 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.”

Google has pledged to cooperate but cautioned against “overly prescriptive digital competition rules”.

A spokesperson said: “We will continue to engage constructively with the CMA to ensure that new rules benefit all types of websites and still allow people in the UK to benefit from helpful and cutting-edge services.”

The regulator will examine whether Google’s practices stifle innovation, block market entry by rivals, or favour its own services.

It will also assess if the company collects user data without proper consent.

The CMA could require Google to share data with competitors or grant publishers more control over how their information is used in artificial intelligence systems.

Pinar Akman, professor of law at the University of Leeds, said further CMA investigations are “highly likely” under the DMCC Act, which aligns with global moves to regulate digital markets.

British Prime Minister Sir Keir Starmer has lauded AI’s potential, committing to an action plan to harness its benefits across public services and the economy.