Last week, Google announced a revised approach to its plan to phase out third-party cookies in its Chrome browser, impacting four years of industry preparations. The initial plan to remove third-party cookies, essential to the $225 billion online ad industry, followed Apple’s similar move with Safari.
However, due to Chrome’s dominance and its significant role in ad revenue, Google’s strategy needed to be more collaborative than Apple’s unilateral decision. This approach aimed to address privacy concerns while maintaining competitiveness and meeting Google’s commercial needs.
Google introduced Privacy Sandbox as a solution to balance privacy with the competitive landscape. The rollout, however, has been challenging, with third parties hesitant about the legal terms required to participate in Google’s controlled environment.
Privacy Sandbox suggested shifting ad server and supply-side platform roles into the browser, raising accusations of Google favoring its services. This situation has led to concerns among online publishers about decreased ad revenues and increased control by Google.
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Following Google’s recent announcement, discussions with regulators like the U.K.’s Competition and Markets Authority and Information Commissioner’s Office are ongoing. Details about the new implementation remain scarce, with no set timeline for Chrome’s “new experience.”
This uncertainty has caused paused investments and disrupted product plans, prompting calls for more fundamental measures, including government intervention, to regulate the industry.
Lobby groups like the Movement for an Open Web advocate for breaking up browser monopolies held by Google and Apple. They argue that browsers should focus solely on providing web access, separating this from other integrated services to prevent dominance.
Proposals include creating regulated tiers for browser functionality, ensuring interoperability, and allowing competing services to provide additional features like search and payments independently.
The discussion around regulating browsers as utilities is gaining traction, with industry leaders emphasizing the need for clear guidelines and standards. The shift away from open standards like HTTP is seen as detrimental to competition and the broader economy.
Regulation could ensure a fair environment, aligning with how other technologies are regulated, and address concerns that current dominant structures undermine the business models of third parties, including publishers.
