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Google and Facebook ‘set to face probe from competition watchdog’ because they have so much power over the web

The two companies are being investigated by a Government review into the future of the media

GOOGLE and Facebook could face a probe from the UK's competition watchdog over claims they have sewn up the online advertising market, it emerged today.

A review into the future of the media is considering whether to refer the web giants to the Competition and Markets Authority.

 Google and Facebook could face a competition probe
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Google and Facebook could face a competition probeCredit: AP:Associated Press

That could lead to the US firms being forced to give up their stranglehold over internet ads.

The two companies control more than half of Britain's online advertising market - while thousands of firms rely on Google's platforms for their ads.

They are currently being investigated by the Cairncross Review, set up by Theresa May to work out how to safeguard the financial future of the press.

The panel may now recommend that ministers refer the companies to the CMA, .

 Mark Zuckerberg's Facebook is being probed by a Government review
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Mark Zuckerberg's Facebook is being probed by a Government reviewCredit: AFP
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The CMA has the authority to order firms to break up completely if they are found to have too much power over the market.

It could also force them to be more transparent about their advertising operations.

Labour's deputy leader Tom Watson told the Telegraph: "There’s no doubt that the dominance of the big social media and internet companies has had a big effect on journalism and it has often been very negative.

"We need to scrutinise how the digital advertising market is working, or maybe not working. A CMA investigation would be the obvious place to do that."

Culture Secretary Matt Hancock has previously warned that the "duopoly" of Google and Facebook could be hurting the media.

He told a House of Lords committee: "High-quality objective journalism has a public policy value as well as an economic value, an incredibly important wider value."

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