The German media and advertising industry has criticized Google for phasing out third-party cookies it plans to implement in its Chrome browser by 2023, as it could deprive them of a lucrative source of revenue. EURACTIV Germany Reports.
A broad alliance of media and communications industry associations released a position paper Monday (January 24) opposing Google’s plan.
The eight associations representing almost the entire advertising and media landscape in Germany have sent a letter to the European Commission, claiming that Google’s planned move would constitute an abuse of its dominant market position. The Chrome browser has a global market share of around 65%.
This could lead to significant financial hardship for media companies, with online publishers potentially suffering revenue losses of up to 70%. The data collected from cookies is one of the cornerstones of online media offering advertisements tailored to Internet users.
However, while Google will continue to access the data it collects, advertisers will face huge hurdles in using the data legally.
“By its behavior, Google abuses its market power under the guise of data protection and distorts free competition in online advertising markets,” the letter says. The authors also accuse Google of acting as a “substitute legislator”.
More privacy
Google argued that the new measures were developed to ensure a “more private and secure internet”.
“The goal is to protect user privacy and prevent covert tracking while maintaining an open, ad-supported and thriving web,” a Google spokesperson told EURACTIV.
Instead of cookies, the internet giant plans to rely on internal tracking technology in the future. However, Google says the new technology will not rely on tracking individual user behavior.
Google’s competitors, such as Apple, Microsoft and Mozilla, have also increasingly decided to block cookies on their browsers.
The EU against Google
The European Commission open an investigation against Google in June 2021 to assess possible anti-competitive behavior in online advertising.
The proceedings relate to Google’s management of online ad placements, as “Google is present at nearly every level of the supply chain for online display advertising,” the competition chief of Google said at the time. EU, Margrethe Vestager.
The Commission’s case, however, does not mention the phasing out of cookies.
Google’s planned change to its tracking technology has already caused a stir in the UK.
The UK’s Competition and Markets Authority (CMA) launched an investigation into Google earlier this month because the phasing out of cookie-based technologies could have a ‘significant impact’ on news websites and the online advertising industry.
EU rules ‘cannot be circumvented’
Even after the phasing out of cookies in the Chrome browser, the use of tracking-based technologies will continue to fall under EU data protection rules.
Data protection groups have previously raised concerns that the introduction of new tracking devices could lead to circumvention of EU data protection rules.
“With regard to Google’s considerations, our analysis has shown that European data protection law cannot be circumvented with this, as personal data on surfing behavior is also collected and processed with this method”, Green/EFA MEP Patrick Breyer told EURACTIV.
Breyer therefore sees no need for further regulation at this time.
[Edited by Daniel Eck/Luca Bertuzzi/ Alice Taylor]
