The Competition and Markets Authority (CMA) said it has secured improved commitments from Google on its proposals to remove third-party cookies and other functionalities from its Chrome browser.

The competition watchdog has been investigating Google’s ‘Privacy Sandbox’ since the start of 2021.

The proposed tool would allow the search giant to remove third-party cookies on Chrome browsers and replace them with new tools for targeting advertising.

However, some parties, such as The Movement for an Open Web (MOW), have alleged alternatives to third-party cookies could be developed and implemented in ways that might impede competition in digital advertising markets.

The CMA alleged the introduction of a ‘Privacy Sandbox’ may cause advertising spending to become even more concentrated on Google, harming consumers who ultimately pay for the cost of advertising.

The CMA also alleged the changes could undermine the ability of online publishers, such as newspapers, to generate revenue and continue to produce valuable content in the future, reducing choice for consumers.

The CMA heard from over 40 third parties who agreed with the CMA’s competition concerns but suggested that the commitments should be strengthened in several areas.

These suggestions included increasing Google’s transparency and engagement with the industry, adding that certain functionality should not be removed before third-party cookies, improving the provisions on Google self-preferencing its advertising products and services, and bolstering the monitoring of Google’s compliance.

The CMA will now consult on these new commitments until 17 December 2021.

Google has said the new commitments will apply globally if accepted.

The search giant is no stranger to scrutiny from government regulators; earlier this month the company won an appeal in the UK Supreme Court against a case brought over an alleged breach of personal data which could have cost it around £3 billion.

Google avoids £3bn payout in UK Supreme Court appeal - National Technology
Google has won an appeal in the UK Supreme Court against a case brought over an alleged breach of personal data. Richard Lloyd sought compensation under the Data Protection Act for damage allegedly suffered by Apple iPhone users due to the unlawful processing by Google of their personal data.
nationaltechnology.co.uk

“We have always been clear that Google’s efforts to protect user’s privacy cannot come at the cost of reduced competition,” said CMA chief executive Andrea Coscelli. “That’s why we have worked with the Information Commissioner’s Office (ICO), the CMA’s international counterparts and parties across this sector throughout this process to secure an outcome that works for everyone.”

“We welcome Google’s co-operation and are grateful to all the interested parties who engaged with us during the consultation.”

He added: “If accepted, the commitments we have obtained from Google become legally binding, promoting competition in digital markets, helping to protect the ability of online publishers to raise money through advertising and safeguarding users’ privacy.”

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