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Google’s plan to remove third-party cookies from Chrome to be checked by UK antitrust officials
Competition and Markets Authority (CMA) to review Google’s plan to remove third-party cookies from Chrome. According to the regulator, the company’s actions could lead to the fact that advertising costs “become even more focused on the Google ecosystem at the expense of its competitors.”.
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Cookies allow companies to “track” users on the Internet so that they can serve them personalized ads. At the same time, the tool has been criticized for many years by privacy advocates who call it too intrusive. Google plans to remove support for third-party cookies from Chrome by 2022 as part of the Privacy Sandbox initiative. The CMA notes that they received a number of complaints about this initiative. According to her opponents, she will create a lack of competition in the advertising market.
“The Google Privacy Sandbox Initiative will have a significant impact on online publications, newspapers and the digital advertising market as a whole. In addition, there are issues related to the confidentiality of information. These issues will be investigated in conjunction with the Information Commissioner’s Office (ICO), ”said CMA executive head Andrea Coscelli.
If an investigation reveals that Google is in fact in violation of UK laws, the CMA has the authority to charge the company up to 10% of its annual revenue. For example, according to the results of the same 2021, Google’s revenues in the UK amounted to about $ 4.6 billion. Roughly 80% of the £ 14bn ($ 19bn) UK spent on advertising in 2021 came from Google and Facebook. At the same time, 90% of the search advertising market in Britain is owned by Google, and more than 50% of the display advertising market is accounted for by Facebook.
Google noted that it is supporting the CMA investigation and added that “the company is developing new proposals to support a healthy online advertising environment without third-party cookies.”.