Revenue drops by up to 75% MOW alliance prevents Google from launching Privacy Sandbox

The Movement for an Open Web alliance formed by a number of technology companies, publishers, and advertisers recently asked the UK Competition and Market Authority (CMA) to block Google from implementing the Privacy Sandbox plan and to maintain the operation of existing third-party cookies Way. They asked the British competition regulator to impose a formal restraining order on the American technology giant.

MOW highlighted a 2019 document written by Google’s own engineers. The document found that if Privacy Sandbox deletes “third-party cookies” used by companies without sufficient alternatives, most of the Fortune 500 publishers will lose More than 50% of income, some will exceed 75%.

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This amounts to a major threat to the news industry because news publishers increasingly rely on digital advertising for their income. The campaign organization responded to a consultation from the Competition and Markets Authority, requesting that Google stop restricting the ability of online publishers and other businesses to conduct business. As the CMA’s investigation into Google’s market dominance entered its second year, the organization called for a ban.

CMA agrees with the findings of this investigation and believes that the possible loss is close to 70%. Google tried to promote alternative products (FloC and Fledge), but in March 2021, it was clear that none of the products would succeed. Under pressure from privacy advocates, Google delayed its implementation. James Rosewell, the founder of MOW, said that decisive action by the Competition and Markets Authority is critical:

After taking this issue out for comments, the bureau must listen to the opinions of those users most affected by Google. Changes in Google’s plan will harm businesses-Google themselves says so. The CMA needs to move closer and use its power. If we don’t do this, we will see many publishers, along with their headlines and their news, walking towards the wall or the “walled garden” of Google and Apple. The use of temporary orders will provide time to negotiate possible improvements to competition and online privacy.

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