Small ad-tech firms fear Google’s Privacy Sandbox impact

Smaller ad-tech companies are raising concerns over Google’s Privacy Sandbox, a proposed alternative to cookies, as they fear it could further consolidate Google’s dominance in digital advertising. Privacy Sandbox, which aims to enhance user privacy by anonymising data and targeting groups rather than individuals, has been under development for five years. US and UK regulators are investigating whether the new system could give Google too much control, potentially harming competition in the market.

Smaller firms argue that the costs of adapting to Privacy Sandbox put them at a disadvantage compared to larger competitors with greater resources. While large firms like Index Exchange can afford to invest minimal portions of their revenue in the transition, smaller companies face higher financial risks and extended development costs, threatening their ability to compete effectively.

Google defends Privacy Sandbox as a way to support a competitive marketplace, but experts say regulatory intervention will be critical to ensuring fair competition. Despite these concerns, some industry insiders believe regulators will prevent Google from consolidating its power through the new technology.