The UK’s competition authority has accepted commitments by Google to create a fair playing field in online advertising after it phases out third-party cookies.
The world of online advertising was shaken by Google’s decision to phase out third-party cookies from its online browser Chrome by 2023 — a move that prevents publishers and advertisers from seeing what individuals are interested in as they surf the web.
The UK’s Competition and Markets Authority began a probe into the changes in January, following complaints from smaller rivals that Google would benefit the most, since it already holds the most data on users.
On Friday the regulator said Google’s revised offers, which include an independent monitoring trustee who will have access to Google’s systems to make sure it is not squashing rivals, addresses its concerns. Once it accepts Google’s olive branch, its investigation will close, the CMA said, adding that Google would enact the changes globally.
The renewed commitments from Google follow a series of proposals last June, including a promise not to use its “first-party” data, which is collected by Google via its Chrome browser and Android platform, to target individuals across the web with advertising after third-party cookies have been phased out.
Google has also proposed changes to how it develops its alternative to cookies, a suite of features known collectively as the “privacy sandbox”. These include tools that would analyse a user’s behaviour on their browser, rather than centrally. For advertisers, Google will group people into cohorts that can be fed advertising. Nevertheless, academics and rivals have claimed Google’s control of the design process will only consolidate its power on the internet.
In its revised offer to the CMA, Google promised that it would provide more transparency into the design of these tools and allow competitors and industry players to feed more formally into the development of the system.
“The fact that a UK regulator has been able to get any concession out of a global company is impressive, it’s certainly a battle won in a long war,” said Reuben Binns, a computer scientist at Oxford university, who specialises in third-party data tracking and has analysed Google’s Privacy Sandbox proposals. “Their second commitment on opening up the privacy sandbox is more vague, and that is the one I would be worried about.”
The CMA chief executive Andrea Coscelli said that Google’s commitments would “level the playing field for advertisers, ad tech providers and publishers and remove Google’s possible inbuilt advantage.”
Friday’s announcement follows an update from the UK data regulator, the Information Commissioner’s Office, which has been working with the CMA to review Google’s plans. The ICO warned that new online advertising tools must comply with data protection laws and “stop the excessive collection and use of people’s data.”
The regulator will consult on these proposals until December 17. If accepted by the CMA, Google’s commitments will become legally binding and end the probe.