Google’s regulatory problems are growing across the dam.
The UK competition watchdog said on Friday that it had launched an investigation into the search giant’s proposals to remove cookies and other third-party features from its Chrome browser, as the concerns could harm digital competitors.
The Competition and Market Authority will investigate whether Google’s changes will lead to more advertising spending in its own ecosystem at the expense of its competitors.
Google is also facing a trio of antitrust lawsuits at home in the United States, and is accused of maintaining monopolies through ‘multiple forms of competitive competition in the general search and search advertising-related markets’.
Google’s technology, called the ‘Privacy Sandbox’ project, enables users to be targeted by ads without locating every person on the internet. The watchdog has received complaints from a coalition of technology and publishing companies accusing Google of abusing its dominant position in the sector.
“As the CMA found in its recent market study, Google’s proposals on the privacy sandbox will have a very significant impact on publishers such as newspapers and the digital advertising market,” said Andrea Coscelli, head of the CMA.
With cookies, advertisers can target consumers with personalized ads and newspapers and other websites can provide their content for free.
‘[Google] could undermine publishers’ ability to generate revenue and undermine digital advertising competition, which could entrench Google’s market power, ”Coscelli added.
Other browsers, including Firefox and Apple’s Safari, have already blocked third-party cookies, and Google claims that it made the change to protect consumer privacy.
“To create a more private web, but also to enable publishers and advertisers who support the free and open Internet, the industry needs to make major changes in the way digital advertising works,” a Google spokesman said. .
“We welcome the involvement of the CMA as we work to develop new proposals to support a healthy, ad-supported web site without third-party cookies.”
The CMA said it would work with the British watchdog for the investigation.
Shares of Google traded Friday morning.
The investigation comes two months after a group of 165 companies and industry organizations called on European Union antitrust enforcement officers to stop the search giant and accuse them of using its market dominance to market its own services on internet searches. benefit.