Calls grow for UK competition watchdog to block Google's Privacy Sandbox

A group of companies has warned that Google's Privacy Sandbox would cut publishers' revenues by as much as two-thirds

An alliance of technology and publishing companies has filed a complaint with the UK's Competition and Markets Authority (CMA), urging the regulator to delay the rollout of Google's 'Privacy Sandbox' technology, which is scheduled to launch early next year.

In its letter, the Marketers for an Open Web (MOW) said that delaying Privacy Sandbox will give regulators time to formulate "long term competitive remedies to mitigate [Google's dominance]".

"[Our] letter is asking for the introduction of Privacy Sandbox to be delayed until such measures are put in place," MOW said in a press release.

Google unveiled its Privacy Sandbox plan in August last year, claiming that it would help making web surfing more private, while still enabling digital advertising firms to target web users.

As part of the new scheme, Google proposes storing and processing all user data in the web browser, and using machine learning algorithms to assess users' interests to target them with relevant ads.

Google says the data will be presented to advertisers in the form of a cryptographic token that will obfuscate identifying information. This will enable advertisers to confidently target their ads without directly identifying individuals.

Critics, however, warn that the scheme would remove advertising, login, and many other features from the open web and place them under the control of Google.

According to MOW, the new technology will eliminate third-party cookies used to store user information on devices, and would replace them with tools owned by Google.

The group argues that the changes will move the digital advertising business "into the walled garden of [Google's] Chrome browser, where it would be beyond the reach of regulators."

It warns that Privacy Sandbox will deny news publishers access to the cookies they use to sell digital ads and will cut their revenues by about two-thirds, with smaller regional publishers hit hardest.

"The world's regulators have realised that Google is attempting to take over the web through its dominance of areas such as search, online advertising and browser technologies," said James Rosewell, Director of MOW.

"If Google releases this technology, they will effectively own the means by which media companies, advertisers and technology businesses reach their consumers and that change will be irreversible," he added.

The challenge against Privacy Sandbox has come shortly after it emerged that the US Department of Justice (DoJ) is considering a plan to force Google to spin off or sell some parts of its business, including its popular Chrome browser.

Citing sources familiar with the matter, Politico claimed that the DoJ is preparing to bring an antitrust suit against the search giant, for allegedly abusing its dominance in the online search market.

The US House Judiciary Committee's Antitrust Subcommittee also recently released the findings of its 16-month-long investigation into the challenges posed by the dominance of tech giants in the digital economy.

The report concluded that big tech firms like Google and Facebook are effectively monopolies, which must be broken up to restore competition and improve innovation in the industry.

It also urged the House to consider restructuring big tech firms, empowering the agencies responsible for controlling market concentration, and introducing new antitrust rules to block attempts by companies to buy start-ups.