Google's online advertising practices are under fresh examination in the UK, as the competition regulator expressed ongoing concerns regarding the company's decision to keep third-party cookies in its Chrome browser. On Tuesday, the watchdog highlighted that issues persist with Google's plans.
Earlier this year, Google abandoned its previous initiative to eliminate cookies—small data files that monitor user activity across the web. This reversal came after advertisers, who are crucial to Google's revenue stream, voiced worries that removing cookies would hinder their ability to tailor advertisements, ultimately making them reliant on Google's own user data.
In a bid to address concerns from critics, Google, a subsidiary of Alphabet, announced that Chrome users will have the option to permit cookies to track their online activity. This move follows the company's decision to retain third-party cookies, which has drawn scrutiny from regulators.
In light of this change, the Competition and Markets Authority (CMA) has reached out to stakeholders for their opinions on Google's revised strategy. In a statement released online on Tuesday, the CMA indicated that, after thoroughly reviewing the feedback, it believes that competition issues still persist with Google's updated approach.
"Based on careful consideration of the responses we received, the CMA’s view is that competition concerns remain under Google’s revised approach," the CMA said in a statement posted online on Tuesday.
"If the CMA is not able to agree changes to the commitments with Google which address the competition concerns, then the CMA will consider what further action may be necessary," it added.
Google's cookie practices are facing increased scrutiny from various regulators, including the UK's Information Commissioner's Office (ICO). The ICO, which had previously backed Google's initiative to eliminate these tracking tools, is now expressing concerns about the company's ongoing use of cookies. This shift in perspective highlights the growing apprehension surrounding privacy and data tracking in the digital landscape.