The Competition and Markets Authority (CMA) has accepted the revised commitments by advertising giant Google over changes to the personal data harvester’s Chrome browser.
Alphabet Inc (NASDAQ:GOOG), the owner of Google, offered the commitments to the CMA after the watchdog launched an investigation into the proposals by Google to replace third-party cookies (TPCs) and other functionalities with a range of changes known as the ‘Privacy Sandbox’.
The extensive collection of data by means of cookies has given rise to concerns about users’ privacy and compliance with data protection laws. The stated aim of Google’s Privacy Sandbox proposals is to remove cross-site tracking of Chrome users through TPCs and alternative tracking methods such as fingerprinting and replace it with tools to provide selected functionalities currently dependent on cross-site tracking.
The CMA, responding to complaints of uncompetitive behaviour, was determined to ensure that Google will develop its Privacy Sandbox in a way that does not distort competition, such as Google favouring its own advertising technology over competitors’.
The CMA was also concerned that the proposals could undermine the ability of online publishers, such as newspapers, to generate revenue and continue to produce valuable content in the future – reducing the public’s choice of news sources.
After two rounds of public consultation, the CMA is now satisfied with Google’s legally binding commitments to develop the Privacy Sandbox in a way that will address the watchdog’s competition concerns.
Google has agreed that the CMA should be closely involved in the development of the Privacy Sandbox and that it will give the regulatory body at least 60 days notice before it proceeds with the removal of TPCs, giving the CMA option to call for a rethink.
Google will engage in a more transparent process than initially proposed, including engagement with third parties and publishing test results, with the option for the CMA to require Google to address issues raised by the CMA or third parties, a press release from the watchdog said.
???? We’ve accepted commitments from #Google about their removal of third-party cookies from #GoogleChrome.
We'll now supervise Google to ensure the ???? #PrivacySandbox is developed in a way that benefits users and protects #competition.
Read more: https://t.co/NjtCuUP6fo pic.twitter.com/ASWAL5Pyfy
— Competition & Markets Authority (@CMAgovUK) February 11, 2022
“Our intervention in this case demonstrates our commitment to protecting competition in digital markets and our global role in shaping the behaviour of world-leading tech firms,” said Andrea Coscelli, the chief executive of the CMA.
“The commitments we have obtained from Google will promote competition, help to protect the ability of online publishers to raise money through advertising and safeguard users’ privacy.
“While this is an important step, we are under no illusions that our work is done. We now move into a new phase where we will keep a close eye on Google as it continues to develop these proposals.
“We will engage with all market participants in this process, in order to ensure that Google is taking account of concerns and suggestions raised,” Coscelli added.
Success for @Google. It wrapped up a big UK #antitrust probe into their privacy/cookie measures. They'll be hoping this sets the standard and puts the brakes on a few similar investigations. https://t.co/8vdQp9XSed Also @CMAgovUK will be happy to have been out in front on this.
— Lewis Crofts (@lewis_crofts) February 11, 2022