Google plan to block cookies ‘under scrutiny’ from US regulators
Google’s plan to scrap web-tracking advertising tools known as cookies is said to have attracted scrutiny from US regulators amid concerns the move could harm smaller rivals.
The search engine giant has unveiled proposals to block cookies in its Chrome browser in an effort to increase user privacy.
But the plans have stirred up anger among online advertising firms, which use the tools to gather data on consumers for targeted ads.
The US Justice Department has begun quizzing advertising executives could affect both the advertising and news industries, Reuters reported, citing sources.
Investigators are said to be looking into whether Google is using Chrome, which has a 60 per cent share of the global market, to prevent rivals from tracking users through cookies while leaving loopholes for it to gather its own data.
US authorities are already investigating the tech giant over alleged anti-competitive practices in its search and advertising business.
Google defended its advertising business and insisted the changes would improve user privacy.
“The enormous competition in ad tools has made online ads more affordable, reduced fees, and expanded options for publishers and advertisers,” the company said in a statement.
The US Justice Department declined to comment.
It comes as Google today announced it will invest $7bn (£5bn) in offices and data centres in the US during this year alone.
The spending spree, which includes $1bn in the company’s home state of California, will create at least 10,000 new full-time jobs, chief executive Sundar Pichai said.