The Google Privacy Sandbox has sparked significant concerns, with 111 potential issues reported by the U.K. Competition and Markets Authority (CMA) in its April Q1 2024 report. This number has increased from the 72 concerns noted in the CMA’s Q4 2023 report released in January. The growing number of concerns raises questions about the impact of Google’s Privacy Sandbox on advertisers, competing ad platforms, publishers, and users.
The CMA’s previous report stated that Google could not proceed with the deprecation of third-party cookies. In line with this, Google recently announced a third delay in the phase-out of cookies, with plans to complete the process by 2025. However, this is merely a postponement, and it remains certain that third-party cookies will eventually be eliminated.
One of the main concerns raised by the CMA and the U.K.’s Information Commissioner’s Office (ICO) is that the Privacy Sandbox could further enhance Google’s dominance, giving them an unfair advantage over others in the industry. This advantage could potentially harm advertisers, competing ad platforms, publishers, and users.
The report also highlights concerns over Google’s approach to attribution, specifically multi-touch attribution. Stakeholders expressed worries that Google’s preference for “single touch” attribution may favor the company. For instance, a user may come across an ad multiple times on various platforms before taking action, and stakeholders fear that Google being the “last touch” may capture more value from conversions compared to other participants in the market. The CMA has shared this feedback with Google and is awaiting the company’s response.
So, what exactly is Google’s Privacy Sandbox? It is a program introduced by Google as an alternative to third-party cookies. Its aim is to enable advertisers to deliver targeted ads in Chrome while minimizing improper cross-site and cross-app tracking.
Google initially began phasing out third-party cookies to only 1% of Chrome users in January. However, the company announced another delay to the deprecation of third-party cookies in April. Google acknowledges the ongoing challenges in reconciling feedback from the industry, regulators, and developers, and will continue engaging with the ecosystem. The CMA has requested industry tests and evidence, and Google wants to give the authority sufficient time to review this information before completing third-party cookie deprecation. Google remains committed to working closely with the CMA and ICO, with hopes of concluding the process this year and starting third-party cookie deprecation in early 2025.
The concerns raised by the CMA and the increasing number of potential issues surrounding Google’s Privacy Sandbox highlight the need for careful consideration and evaluation of its impact on various stakeholders in the digital advertising industry. Advertisers, competing ad platforms, publishers, and users will be eagerly awaiting further updates and responses from Google regarding these concerns.
[Source: Search Engine Land]
