Google’s regulatory problems are growing a lot.
The UK competition watchdog said on Friday it had launched an investigation into the search giant’s proposals to remove third-party cookies and other functions from its Chrome browser, after concerns that the move could harm ad rivals. digital.
The Competition and Markets Authority will see if Google’s changes would channel more ad spend into its own ecosystem at the expense of its competitors.
Google is also facing a trio of antitrust lawsuits in the United States and has been accused of maintaining monopolies through “various forms of anti-competitive conduct in general search and in markets related to search advertising”.
Google’s technology, dubbed the ‘Privacy Sandbox’ project, would allow users to be targeted with ads without tracking every person on the web. The agency has received complaints from a coalition of technology companies and publishers that accuse Google of “abusing its dominant position” in the industry.
“As the CMA discovered in its recent market study, Google’s Privacy Sandbox proposals will have a very significant impact on publishers like newspapers and in the digital advertising market,” said CMA chief Andrea Coscelli.
Cookies allow advertisers to reach consumers with personalized ads and allow newspapers and other websites to deliver their content for free.
“[Google] it could undermine publishers’ ability to generate revenue and undermine competition in digital advertising, strengthening Google’s market power, ”added Coscelli.
Other browsers, including Firefox and Apple’s Safari, have already blocked third-party cookies, and Google says it is making the move to protect consumers’ privacy.
“Creating a more private web, while allowing publishers and advertisers who support the free and open internet, requires the industry to make major changes to the way digital advertising works,” said a Google spokeswoman.
“We welcome the involvement of the CMA as we work to develop new proposals to support a healthy web supported by ads without third-party cookies.”
The CMA said it would work with Britain’s data watchdog on the investigation.
Google’s shares were stable in Friday morning trading.
The investigation comes two months after a group of 165 companies and industry bodies asked European Union antitrust agents to crack down on the search giant, accusing it of using its market dominance to favor its own web search services.