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Financial Services Law Insights and Observations

UK accepts multinational tech company’s privacy sandbox proposals

Privacy/Cyber Risk & Data Security UK Regulatory Sandbox Fintech Of Interest to Non-US Persons

Privacy, Cyber Risk & Data Security

On February 11, the UK Competition and Markets Authority (CMA) issued a decision accepting a multinational technology company’s offer to provide more transparency and oversight to its privacy sandbox proposals. The purpose of these proposals is to remove cross-site tracking of certain users through third-party cookies and alternative tracking method such as fingerprinting, and replace these methods “with tools to provide selected functionalities currently dependent on cross-site tracking.” A replacement technology has not yet been selected. CMA conducted an investigation centered around competition concerns related to the impact the privacy sandbox proposals may have if they are “implemented without sufficient regulatory scrutiny and oversight, in terms of third parties’ unequal access to the functionality associated with user tracking.” CMA’s decision requires the company to work closely with the agency when developing and testing its proposed replacements for third-party cookies. Additionally, the company is barred from making changes that give it an advantage over competitors when third-party cookies are removed and from developing replacements that give the company a competitive advantage over third parties. The company is also required to provide CMA with at least 60 days’ notice before removing support for third-party cookies and may not “combine user data from certain specified sources for targeting or measuring digital advertising on either [company] owned and operated ad inventory or ad inventory on websites not owned and operated by [the company].” CMA stated that it will continue to consult with the UK Information Commissioner’s Office on aspects of the privacy sandbox proposals related to privacy and data protection measures to ensure these concerns are addressed as the proposals are more fully developed.