UK Antitrust Probe Targets Google’s Plan to Replace Tracking Cookies
CMA Investigates Google’s Privacy Sandbox Initiative
The UK’s Competition and Markets Authority (CMA) has launched an antitrust investigation into Google’s plan to phase out third-party cookies in its Chrome browser. The probe focuses on potential competition law violations under Chapter II of the UK’s Competition Act 1998.
Key Developments:
- Investigation follows complaints from digital marketing firms in November 2020
- CMA examining whether Google’s changes could further concentrate ad spending in its ecosystem
- Google delays implementation of Privacy Sandbox until at least 2022
Background: The Privacy Sandbox Controversy
Google’s Privacy Sandbox initiative aims to:
- Create a more private web experience
- Develop alternatives to third-party cookie tracking
- Maintain support for digital advertising that funds free online content
However, compe*****s argue this move could:
- Strengthen Google’s dominant market position
- Reduce competition in digital advertising
- Potentially create a “walled garden” controlled by Google
“Creating a more private web, while also enabling the publishers and advertisers who support the free and open internet, requires the industry to make major changes,” a Google spokesperson stated.
Industry Concerns and Regulatory Scrutiny
Digital marketers fear losing crucial targeting capabilities as browsers eliminate tracking technologies. Notably:
- Safari (WebKit) implemented tracking prevention in 2019
- Firefox blocked third-party cookies by default in 2019
- Chrome’s move comes later but affects the majority browser market
The CMA acknowledges the need to balance:
- Legitimate privacy concerns
- Maintaining fair competition
- Protecting smaller industry players
Potential Alternatives to Tracking Cookies
Several proposals are under consideration:
Google’s Proposals:
- Dovekey (key value server system)
- FLoC (Federated Learning of Cohorts using machine learning)
Industry Alternatives:
- Unified ID 2.0 (The Trade Desk)
- Verizon Media’s Unified ID
Regulatory Landscape and Future Implications
The investigation could:
- Influence the future shape of digital advertising
- Potentially create regulatory divergence between UK and EU
- Impact upcoming UK digital market regulations
James Rosewell of Marketers for an Open Web coalition welcomed the probe, stating: “This is about the future of the Open Web and the threat that Google poses to its development.”
What’s Next?
The CMA’s investigation provides a framework for:
- Continued regulatory engagement
- Potential legal solutions
- Ongoing industry collaboration
As the digital advertising landscape evolves, this probe marks a critical juncture in balancing privacy, competition, and innovation in online advertising.
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