In a surprising turn of events, Google has reversed its long-standing plan to eliminate third-party cookies from its Chrome browser, a strategy initially unveiled four years ago. This unexpected decision has drawn criticism from the UK’s data privacy watchdog, which expressed disappointment over Google’s change in direction.
Cookies, small data files stored on users’ computers, play a crucial role in tracking internet activity and targeting advertisements. Instead of blocking these cookies, Google now intends to offer users an “informed choice” across their web browsing experience. The tech giant is currently in discussions with regulators to finalize the next steps.
This new approach suggests that Google is not completely abandoning its alternative advertising model, known as “Privacy Sandbox,” but will allow third-party cookies to coexist with it. Consequently, users can expect to continue seeing pop-up notifications asking them to enable or disable cookies in the future.
Stephen Bonner of the Information Commissioner’s Office commented, “We believed that blocking third-party cookies would benefit consumers. Google’s new plan represents a significant shift, and we will evaluate this new direction as more details emerge.”
Third-party cookies, essential for digital advertising, enable advertisers to monitor user behavior across different websites and create detailed consumer profiles based on their interests. Google’s dominance in online advertising made its Privacy Sandbox proposal controversial, with competitors and advertising firms raising concerns.
The UK Competition and Markets Authority (CMA) intervened in 2021, fearing that Google’s plan could drive more advertisers to use its proprietary systems. After securing commitments from Google in 2022 to address these concerns, the CMA is now seeking feedback on Google’s revised strategy.
“We need to carefully assess Google’s new approach to Privacy Sandbox, collaborating closely with the ICO, and we invite opinions on Google’s updated plan, considering its potential impact on consumers and market dynamics,” the CMA stated.
Jeff Green, head of advertising platform The Trade Desk, welcomed Google’s decision. “I have been advising our industry, Google, and even Wall Street for years that eliminating third-party cookies is a strategic misstep for Google,” he said. “Google now appears to recognize that offering consumers a choice is the optimal solution.”
This development marks a significant shift in Google’s approach to privacy and advertising, with implications for the entire digital advertising industry.