Google Faces Regulatory Enquiry in UK over AD Data Overhaul

Google Faces Regulatory Enquiry in UK over AD Data Overhaul

Following complaints by a clutch of its competitors that the makeover will bolster the US search giant's online supremacy, Google faces regulatory enquiry over plans to overhaul its ad data system in the UK. The UK competition authority is being urged to intervene and force Google to delay the launch of its "Privacy Sandbox" by a coalition of technology and publishing companies called "Marketers for an Open Web".

According to the group, with "Privacy Sandbox", Google tools will replace third-party cookies that store user data on devices which is tantamount to the search giant gaining control of login, advertising and other features. "Privacy Sandbox" will not allow publishers access to cookies used to sell online ads, considerably shrinking revenues. With "Privacy Sandbox", the digital ad business would come under Google's control and beyond regulatory reach, the group said.

The complaint was confirmed as received by the Competition and Markets Authority. The authority reportedly said, "We take the matters raised in the complaint very seriously, and will assess them carefully with a view to deciding whether to open a formal investigation under the Competition Act." The authority is mulling taking "interim measures" to halt alleged anticompetitive behavior pending a full probe. Earlier in July, the UK competition authority had raised concerns about Google's new system. It had recommended adopting a new regulatory approach to governing search giants like Google. It had reported that Google controlled over 90 per cent of UK's 7.3 billion pound (USD 8.8 billion) search advertising market.

Meanwhile, Google reportedly defended itself saying, "The ad-supported web is at risk if digital advertising practices don't evolve to reflect people's changing expectations around how data is collected and used."