Tech giant Google has announced a strategic shift from its initial plan to phase out third-party cookies, opting instead for a privacy sandbox approach. This decision comes in response to concerns from advertisers who argued that eliminating cookies in the world’s most popular browser would limit their ability to collect data for personalized ads, making them reliant on Google’s user databases.
Cookies are small data pieces sent by a website to a user’s browser, often used to track browsing activity for advertising purposes. The removal of third-party cookies was anticipated to enhance data privacy for Chrome users. However, Google now intends to allow users to make informed choices regarding third-party cookies through its privacy settings.
In a blog post, Anthony Chavez, Vice President of the Google-backed Privacy Sandbox initiative, explained the new approach:
“We are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.
“We’re discussing this new path with regulators, and will engage with the industry as we roll this out.
“We’ll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. We also intend to offer additional privacy controls, so we plan to introduce IP Protection into Chrome’s Incognito mode,” he added.
Privacy Sandbox Initiative
Chavez highlighted that the Privacy Sandbox was developed to find innovative solutions that significantly enhance online privacy while maintaining an ad-supported internet. This initiative aims to support a vibrant ecosystem of publishers, connect businesses with customers, and provide free access to a wide range of content.
Throughout the development process, Google received feedback from various stakeholders, including regulators such as the UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO), publishers, web developers, standards groups, civil society, and advertising industry participants.
“This feedback has helped us craft solutions that aim to support a competitive and thriving marketplace that works for publishers and advertisers and encourages the adoption of privacy-enhancing technologies,” Chavez stated.
Context and Implications
The cancellation of the cookie phase-out marks the end of a series of delays by Google, which had shifted its deadline three times amid concerns over anti-competitiveness. In April, Google announced the third postponement of the planned action to 2025, citing the need to allow regulators more time. At that time, the company was collaborating with the UK’s CMA, which was reviewing its practices.
In February, the CMA ordered Google to halt its phase-out of cookies until it addressed anticompetitive concerns. Specifically, publishers and ad tech companies had prompted the CMA to investigate worries that the Privacy Sandbox could favor Google’s ad products, particularly Google Ad Manager.
Google’s decision to reassess its approach to cookies mirrors similar moves by Apple Inc., which disrupted the digital ad market in 2021 by restricting advertisers’ access to user data in its operating system.
