The Competition and Markets Authority (CMA) has said that Google “cannot proceed with third-party cookie deprecation” until its concerns are resolved, sparking further uncertainty across the industry.
The CMA’s intervention could mean further delays to the phasing out of third-party cookies, which after numerous postponements is set to be finalised by the end of this year.
In its latest report on the implementation of Google’s Privacy Sandbox commitments, the regulator has said that although the tech giant is so far complying with its demands, there remain considerable areas of concerns to be addressed before the full phasing-out of third-party cookies can be completed.
Ahead of the due date, the CMA has tasked Google with putting in place key steps to ensure fair market competition in the post-cookie era, namely: That it must not “design, develop or use the Privacy Sandbox proposals in ways that reinforce the existing market position of its advertising products and services, including Google Ad Manager”, and that it should be clearer on its plans for the long-term governance of its Privacy Sandbox.
In a statement, a CMA spokesperson said: In Q1 2024, we will focus on working with Google to resolve the competition concerns we have identified in this report. We are particularly keen on resolving any remaining concerns relating to the design of the Privacy Sandbox tools and to ensure that Google does not use the tools in a way that self-preferences its own advertising services.”
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“As part of this, we are also looking to clarify the longer-term governance arrangements for the Privacy Sandbox. We would welcome comments from interested parties on our analysis of the concerns so that we can take these into account in our discussions with Google between now and the standstill period.”
It must also address issues with specific Sandbox tools such as how its Topics API targeting alternative can harm smaller tech business, and clarify who will govern the Topics API taxonomy.
Google will additionally be required to give further assurances over the future development of Privacy Sandbox tools and must commit to continued engagement with industry stakeholders.
Responding to the CMA’s concerns, a Google statement read: “We continue to move forward with our plans to phase out third-party cookies in H2 2024, subject to addressing any remaining competition concerns from the UK CMA. We are confident the industry can make the transition in 2024 based on all the tremendous progress we’ve seen from leading companies.”
The CMA’s next report on Google’s Privacy Sandbox is due in April, and will provide updates on the deactivation of cookies for 1% of the Chrome user base – around 32 million.
