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.
