Google Agrees UK Oversight, Buffer, for Cookie Replacement

The tide might be turning on Google’s stranglehold over ad tech. The U.K. markets watchdog, The Competition and Markets Authority, will play a role in how Google architects a third-party cookie replacement to ensure it’s not anticompetitive. Google has also committed to addressing concerns from the CMA that it will not use data from its other products, like Search and Analytics, to benefit its own business when third-party cookies are phased out. Top line Google’s commitments include: Implementation of the proposals in a way that avoids distortions to competition and involves the CMA and the ICO in the development of the proposals. Increased transparency from Google on how and when the proposals will be taken forward.Limits on how Google will use individual user data for digital advertising after the removal of third-party cookies.A commitment that Google will not discriminate against rivals in favor of its own advertising and ad-tech businesses when designing the alternatives.A period of at least 60 days before Google proceeds with the removal of third-party cookies giving the CMA the opportunity to reopen its investigation. Interested parties have until July 8 to comment on Google’s proposed commitments. If the CMA accepts these commitments, they become legally binding. The CMA has been working closely with the Information Commissioner’s Office on the case. Between the lines In January 2021, spurred by concerns from other companies, the CMA began investigating Google’s proposals to replace cookies, named Privacy Sandbox. In doing so, it exposed Google’s dilemma between respecting user privacy (by quashing individual user tracking) and preserving fair competition. Without cookies, the concern is more ad money could flow to Google’s ecosystem where marketers can still adequately reach audiences, thanks to Google’s reams of logged-in users. The 60-day buffer especially could be cause for a small collective sigh of relief, as all corners of the ad ecosystem are scrambling to find a patchwork replacement, and little is passing muster right now. Publishers like The New York Times are holding out on email-based identifiers like The Trade Desk's Unified ID 2.0. Others like the Guardian are holding out on the most mature proposal from Privacy Sandbox, federated learning of cohorts. Bottom line While these commitments address U.K. competition concerns, they have implications for the global implementation of Google’s Privacy Sandbox proposals. This marks the third concession Google has made this week, following Google's commitments to change its ad stack in France and Google's changes to the Android screen in Europe, triggering onlookers to believe this is a turning point in how collaborative Google is with the rest of the industry. But, a decades-old skepticism remains. Google has made commitments to regulators before and, thanks to smart wording, deep resources and an intimate knowledge of its own products and the market, still manages to benefit from them. Exactly how much sway the CMA will have over complex mechanisms that haven't been built yet, remains to be seen.

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Google Agrees to UK Oversight and 60-Day Buffer for Cookie Replacement

After a probe began in January, the tech giant is addressing concerns about Chrome

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Lucinda Southern

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