GOOG Alphabet Inc

By Matteo Castia

The U.K. Competition and Markets Authority said Friday that it has opened an investigation into Google's proposals to remove third-party cookies and other functionalities from its Chrome internet browser, following complaints of anticompetitive behaviors.

"The investigation will assess whether the proposals could cause advertising spend to become even more concentrated on Google's ecosystem at the expense of its competitors," the British regulator said.

Third-party cookies track help consumers' behavior across the web to help businesses target advertising effectively. However, these tools can also cause concerns about consumers' privacy.

To fix the issue, Alphabet Inc.'s Google proposed a number of changes encompassed into its Privacy Sandbox project, aimed at disabling third-party cookies on the Chrome and Chromium browser engines and replacing them with a new set of tools for targeting advertising deemed as more protective of consumers' privacy.

The CMA said it has received several complaints alleging that Google would be abusing its dominant position through that project and so has decided to start a formal investigation into the case.

"As the CMA found in its recent market study, Google's Privacy Sandbox proposals will potentially have a very significant impact on publishers like newspapers, and the digital advertising market," CMA Chief Executive Andrea Coscelli said.

Write to Matteo Castia at matteo.castia@dowjones.com

(END) Dow Jones Newswires

January 08, 2021 06:09 ET (11:09 GMT)

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