Google's plan to disable third-party cookies in Chrome falls apart

Google is putting the brakes on changes that would make it harder for websites to track users across different websites to serve targeted ads. After years of testing, planning and delays, Google has backed away from plans to disable third-party cookie tracking by default, as Safari and Firefox already do. The change was supposed to immediately roll out to Chrome users, despite concerns raised by competitors, regulators and privacy advocates.

Anthony Chavez, vice president of Google's Privacy Sandbox, wrote that rather than discouraging third-party cookies, Chrome will now ask users to make an informed choice that applies to their entire web browsing. This could be a similar mechanism to Apple's app tracking opt-in, a setting that reportedly cost social media platforms about $10 billion when it was introduced in 2021. Prompting Chrome's billions of users wouldn't be as drastic as changing the default entirely, but it could significantly reduce the number of users who allow third-party tracking.

On Monday, the Google Ads team also published a whitepaper (pdf) presenting results from early testing of its Privacy Sandbox technology, which is being positioned as an alternative or replacement to cookie tracking. Results showing return on investment for Google display ads showed a 97 percent recovery, which Ad Age rated as strong, but attempts to engage the same customers with follow-up ads were less effective, with remarketing audience spend recovering just 55 percent.

Critics of Google's plans to phase out third-party cookies and roll out other ad targeting technologies such as FLoC and Topic API in its Privacy Sandbox point to potential new privacy risks, as well as the possibility that it could stifle competition and give unfair advantages to the search giant's own advertising business.

Following the news, the UK Competition and Markets Authority wrote that Chrome will introduce a user choice prompt to let users choose whether or not to keep third-party cookies. Google has said it is proposing a new approach, and the CMA plans to accept comments on the changes for several weeks, so details of how it will work are unclear.

The Open Web Campaign, an advertising industry group that filed a complaint with the CMA to block the introduction of the Privacy Sandbox technology, said in a statement that the change was a clear admission that Google's plan to silence the open web had failed.

James Roswell, co-founder of the Open Web Movement:

We have long called for the Privacy Sandbox to be allowed to compete on its merits. If advertisers like the approach and consumers value the privacy benefits, it will be widely adopted. What is unacceptable is for such a solution to be forced onto the market, foreclosing other options.

Google said it will continue to offer its Privacy Sandbox API and will further strengthen privacy by adding IP tracking prevention protection for users who use Incognito mode.

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