Cookies allow companies to “track” users on the Internet so that they can serve them personalized ads. At the same time, the tool has been criticized for many years by privacy advocates who call it too intrusive. Google plans to remove support for third-party cookies from Chrome by 2022 as part of the Privacy Sandbox initiative. The CMA notes that they have received a number of complaints about this initiative. According to its opponents, it will create a lack of competition in the advertising market.

“The Google Privacy Sandbox initiative will have a significant impact on online publications, newspapers and the digital advertising market as a whole. In addition, there are issues related to the confidentiality of information. These issues will be investigated in conjunction with the Information Commissioner’s Office (ICO), ”said CMA executive head Andrea Coscelli.

If an investigation reveals that Google is in fact in violation of UK laws, the CMA has the power to charge the company up to 10% of its annual revenue. For example, at the end of the same 2020, Google’s revenues in the UK amounted to about $ 4.6 billion. About 80% of the 14 billion British pounds ($ 19 billion) spent by the UK on advertising in 2019 came from Google and Facebook. At the same time, 90% of the search advertising market in Britain belongs to Google, and more than 50% of the display advertising market belongs to Facebook.

Google noted that it is supporting the CMA investigation and added that  “the company is developing new proposals to support a healthy online advertising environment without third-party cookies. “