The investigation will assess whether the proposals could cause advertising spend to become even more concentrated on Google's ecosystem at the expense of its competitors. It follows complaints of anticompetitive behaviour and requests for the Competition and Markets Authority (CMA) to ensure that Google develops its proposals in a way that does not distort competition.
Third party cookies currently play a fundamental role online and in digital advertising. They help businesses target advertising effectively and fund free online content for consumers, such as newspapers. But there have also been concerns about their legality and use from a privacy perspective, as they allow consumers' behaviour to be tracked across the web in ways that many consumers may feel uncomfortable with and may find difficult to understand.
Google's announced changes - known collectively as the 'Privacy Sandbox' project - would disable third party cookies on the Chrome browser and Chromium browser engine and replace them with a new set of tools for targeting advertising and other functionality that they say will protect consumers' privacy to a greater extent. The project is already under way, but Google's final proposals have not yet been decided or implemented. In its recent market study into online platforms digital advertising, the CMA highlighted a number of concerns about their potential impact, including that they could undermine the ability of publishers to generate revenue and undermine competition in digital advertising, entrenching Google's market power.
