REG - Competition and Mkts - Update on Google Privacy Sandbox commitments

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11/02/2022 08:00

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RNS Number : 3530B  Competition and Markets Authority  11 February 2022

CMA to keep 'close eye' on Google as it secures final Privacy Sandbox
commitments

·    The CMA has secured legally binding commitments from Google to
address competition concerns over its Privacy Sandbox

·    CMA now moves into the next phase where it will supervise Google to
ensure the Privacy Sandbox is developed in a way that benefits consumers.

The CMA has accepted a revised offer from Google of commitments relating to
its proposed removal of third-party cookies from the Chrome browser (known as
the Privacy Sandbox proposals).

The Competition and Markets Authority's (CMA) competition investigation was
launched in January 2021 over concerns that the proposals would cause online
advertising spending to become even more concentrated on Google, weakening
competition and so harming consumers who ultimately pay for the cost of online
advertising. The CMA was also concerned that the proposals could undermine the
ability of online publishers such as newspapers to generate revenue and
continue to produce valuable content in the future, reducing the public's
choice of news sources.

 

The final commitments accepted by the CMA today are a result of an in-depth
investigation and extensive engagement with Google and market participants
including two formal public consultations. They address the CMA's competition
concerns and Google has also said that the commitments will be rolled out
globally.

 

The CMA is working closely with the Information Commissioner's Office (ICO),
to oversee the development of the proposals so that they protect privacy
without unduly restricting competition and harming consumers.

 

The full list of commitments is available here
(https://www.gov.uk/cma-cases/investigation-into-googles-privacy-sandbox-browser-changes)
but they include:

 

·    Involvement of the CMA and the ICO in the development and testing of
the Privacy Sandbox proposals, to ensure they achieve effective outcomes for
consumers to protect both competition and privacy;

·    Google will engage in a more transparent process than initially
proposed, including engagement with third parties and publishing test results,
with the option for the CMA to require Google to address issues raised by the
CMA or third parties;

·    Google will not remove third-party cookies until the CMA is satisfied
that its competition concerns have been addressed. If the CMA is not satisfied
that its competition concerns have been addressed, the CMA may take further
action (i.e. re-open its investigation, impose interim measures or proceed to
a decision);

·    Commitments to restrict the sharing of data within its ecosystem to
ensure that it doesn't gain an advantage over competitors when third-party
cookies are removed; and commitments to not self-preference its advertising
services;

·    A Monitoring Trustee will be appointed to work alongside the CMA to
ensure the commitments are monitored effectively and Google complies with its
obligations. This appointment is expected to be made shortly.

 

Google has today published a blog post
(https://blog.google/around-the-globe/google-europe/path-forward-privacy-sandbox)
about its obligations under the commitments and the next phase in the
development of the Privacy Sandbox.

 

Google have set out further detail on the process they will follow in engaging
with third parties at www.privacysandbox.com.

 

Andrea Coscelli, the CMA's Chief Executive, said:

"Our intervention in this case demonstrates our commitment to protecting
competition in digital markets and our global role in shaping the behaviour of
world-leading tech firms.

 

"The commitments we have obtained from Google will promote competition, help
to protect the ability of online publishers to raise money through advertising
and safeguard users' privacy.

 

"While this is an important step, we are under no illusions that our work is
done. We now move into a new phase where we will keep a close eye on Google as
it continues to develop these proposals.

 

"We will engage with all market participants in this process, in order to
ensure that Google is taking account of concerns and suggestions raised."

 

The CMA has secured a raft of mechanisms in the commitments that are designed
to hold Google to account.

 

These include:

 

·    CMA oversight of the design of tests of replacements to third-party
cookies and other Privacy Sandbox proposals

·    A standstill period of at least 60 days before Google proceeds to
withdraw third-party cookies, during which the CMA and Google will work to
resolve any remaining competition concerns

·    A mechanism for Google to resolve concerns raised by the CMA without
delay.

 

The CMA may re-open its Competition Act 1998 investigation and impose interim
measures in future if necessary.

 

The commitments will terminate six years from 11 February 2022, unless
released at an earlier date in accordance with section 31A(4) of the
Competition Act 1998.

Notes to editors

 

1.    More information is available on the case page for 'Investigation
into Google's 'Privacy Sandbox' browser changes'
(https://www.gov.uk/cma-cases/investigation-into-googles-privacy-sandbox-browser-changes)
.

 

2.    This is further evidence of the collaborative partnership between the
CMA and the ICO, and of the close relationship between the interests of
competition and data protection. The ICO and the CMA published a joint
statement on the relationship between the aims of competition and data
protection in May 2021
(https://www.gov.uk/government/publications/cma-ico-joint-statement-on-competition-and-data-protection-law)
. Within its decision published today, the CMA has set out more on how it
intends to consult with the ICO on aspects of the proposals that relate to
data protection. On 25 November 2021, the ICO published an opinion
(https://ico.org.uk/about-the-ico/news-and-events/news-and-blogs/2021/11/ico-calls-on-google-and-other-companies-to-eliminate-existing-privacy-risks-posed-by-adtech-industry/)
 that refers to the CMA's investigation

 

3.    The Government has proposed establishing, within the CMA, a statutory
Digital Markets Unit (DMU) to oversee a new regulatory regime for the most
powerful digital firms, promoting greater competition and innovation in these
markets and protecting consumers and businesses from unfair practices. The
Government is currently analysing responses to a consultation on the DMU's
powers. While the role of monitoring the implementation of any commitments
would fall to the CMA for their duration, in the medium term the establishment
of the DMU could provide an appropriate framework for regulatory oversight and
scrutiny.

 

4.    The CMA does not intend to publish the responses to the
consultations, but the information contained in the responses has been
summarised on an anonymous basis in the decision.

 

5.    For media enquiries, contact the CMA press office on 020 3738 6460
or press@cma.gov.uk (mailto:press@cma.gov.uk) .

 

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