MarTech

The Competition and Markets Authority says it has secured improved commitments on Google鈥檚 Privacy Sandbox initiative.

The tech giant is proposing to remove third-party cookies and other functionalities from its Chrome browser, with the stated aim of creating a web that both protects people鈥檚 privacy online and gives companies and developers the tools to build thriving digital businesses.

It intends to 鈥榙evelop a set of open standards to fundamentally enhance privacy on the web, giving people more transparency and greater control over how their data is used鈥.

UK competition watchdog the CMA launched an investigation into alleged anti-competitive behaviour at the start of the year following proposed changes to the initiative which led to a string of complaints, including from the Marketers for an Open Web group.

There are concerns that, without the CMA鈥檚 involvement in the changes, Google鈥檚 alternatives could be developed and implemented in ways that impede competition in digital advertising markets.聽

There are fears this may cause advertising spending to become even more concentrated on Google, harming consumers – who ultimately pay for the cost of advertising – and the ability of online publishers such as newspapers to generate revenue.

Initial commitments offered by Google in June were not accepted by the CMA and more than 40 interested parties, the CMA says. They called for them to be strengthened in order to increase Google鈥檚 transparency and engagement with the industry; allowing certain functionality to remain before third-party cookies; improving the provisions on Google self-preferencing its advertising products and services; and bolstering the monitoring of Google鈥檚 compliance.

To address these points, Google has now offered to mention the CMA鈥檚 role within the process in key public announcements; instruct its staff not to make claims to customers which contradict the commitments; report regularly to the CMA on how Google has taken account of third party views; address concerns about Google removing functionality or information before the full Privacy Sandbox changes, including by delaying enforcement of its Privacy Budget proposal, and offering commitments around the introduction of measures to reduce access to IP addresses; clarify the internal limits on the data that Google can use; provide greater certainty to third parties developing alternative technologies; improve the provisions on reporting and compliance, including by appointing a CMA-approved monitoring trustee; and provide for a longer duration of six years from the date of any decision to accept Google鈥檚 modified commitments.

The CMA鈥檚 provisional view is that Google鈥檚 revised offer addresses its competition concerns, so the CMA is now consulting on the modifications.

鈥淲e have always been clear that Google鈥檚 efforts to protect users鈥 privacy cannot come at the cost of reduced competition,鈥 said CMA Chief Executive Andrea Coscelli.

鈥淭hat鈥檚 why we have worked with the Information Commissioner鈥檚 Office, the CMA鈥檚 international counterparts and parties across this sector throughout this process to secure an outcome that works for everyone.

鈥淲e welcome Google鈥檚 co-operation and are grateful to all the interested parties who engaged with us during the consultation.

鈥淚f 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鈥 privacy.鈥

The CMA will now consult on these new commitments until the end of the year. If the commitments are accepted, this would result in the closure of the CMA鈥檚 investigation, with it then beginning its oversight work.

Google鈥檚 plan is for Chrome to phase out third-party cookies over a period of several months ending in late 2023.聽