Across the pond, regulatory changes are brewing, and they’re worth keeping an eye on. Here are two fairly significant adtech updates from our friends in the UK:
First, the UK’s Information Commissioner’s Office (ICO)—the independent regulator for data protection and information rights—has announced a crackdown on cookie compliance across the UK’s top 1,000 websites. The ICO has already reviewed compliance for the top 200 websites and flagged concerns with 134 of them—about two-thirds (!). The next 800 sites, which likely have fewer resources than the top 200, could face even more challenges. According to the ICO, the initiative aims to set “clear regulatory expectations,” ensuring organizations comply with the law by offering users meaningful choices on how their information is used online. (The ICO has long been critical of adtech – see their Google “fingerprinting” criticism.)
Second, the UK’s Competition and Markets Authority (CMA), which focuses on supporting fair competition in the region, is undergoing leadership changes. The current chair has been ousted as the government shifts its focus toward economic and business growth. This comes amid efforts by the Labour Party to address a sluggish economy. Interestingly, the new head of the CMA previously ran Amazon’s UK operations and played a key role in helping the company navigate regulatory battles against the… CMA. Sounds like the perfect person for the role.
Why This Matters:
There are conflicting messages coming out of the UK, right? On one hand, the ICO’s cookie crackdown is likely to hurt growth and business, especially for companies that rely on delivering personalized advertising. As compliance demands increase, so do costs. In a challenging economic environment—the UK’s economy grew by just 0.1% in November 2024, according to official figures, falling short of expectations—this impact becomes even more pronounced.
At the same time, the CMA leadership shake-up is reportedly aimed at supporting business growth. According to the BBC, the CMA’s chief executive and other regulators met with the Chancellor of the Exchequer (the UK equivalent of our Treasury Secretary) last week to present ideas on stimulating growth. However, the chancellor found the proposals to be “underwhelming” and expressed a desire, instead, to “tear down the regulatory barriers that hold back growth.”
These developments highlight a clear tension between regulatory enforcement and the government’s stated goal of fostering economic recovery. The push for compliance and the push for growth seem to be pulling in opposite directions, leaving businesses caught in the middle. (This is playing out with the UK’s approach to AI, as well.)
Experts React:
Tangentially related to the ICO news, it’s worth noting the ongoing global frustration with cookie compliance measures. Back in November, Elon Musk weighed in on the debate when he retweeted and replied to Airbnb co-founder and X board member Joe Gebbia, who highlighted an eye-opening statistic: Europeans spend an estimated 575 million hours annually clicking through cookie approval prompts.
“Who’s in favor of rolling back cookie banners?” Gebbia tweeted. Musk didn’t hold back, calling the banners not just annoying but “super annoying” in his reply.
On the CMA front, while not exactly an expert take, today brought another news item. Just days after the CMA ousted its chair, the regulator announced a new investigation into Apple and Google’s dominance in mobile platforms. According to the Financial Times, the CMA will examine how the tech giants compete with each other, whether they favor their own apps and services, and whether developers are treated fairly. This, of course, seems like very safe, pro-business terrain.
Our Take:
Does this article make sense? Are we just dumb Americans? Please tell us, UK readers. We did our best. Also, how do you feel about the UK’s regulatory decisions related to adtech and advertising?
