Google’s Strategic Shift: Keeping Third-Party Cookies in Chrome and Introducing New Privacy Controls

In a surprising shift, Google has announced it will not phase out third-party tracking cookies in its Chrome web browser. This decision, revealed on Monday, comes more than four years after Google introduced the concept as part of its Privacy Sandbox initiative, a controversial proposal aimed at enhancing user privacy while sustaining the ad-supported internet model.

Anthony Chavez, Google’s vice president overseeing the Privacy Sandbox initiative, stated, “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.” Chavez added that Google is in discussions with regulators and plans to engage with the industry as this new approach rolls out.

This policy reversal marks a significant shift in Google’s strategy. Just three months ago, the company had announced intentions to eliminate third-party cookies starting early next year, following several delays. This latest change highlights the complexities and challenges Google faces in balancing privacy concerns with the needs of its vast advertising ecosystem.

The Struggle with Third-Party Cookies

While browsers like Apple Safari and Mozilla Firefox stopped supporting third-party cookies as early as 2020, Google’s position as both a leading web browser vendor and a major player in digital advertising has complicated its efforts to phase out these tracking mechanisms. Google’s proposed solution, Privacy Sandbox, has faced scrutiny from multiple stakeholders, including regulators, advertisers, and privacy advocates.

Privacy Sandbox aims to provide a privacy-preserving alternative to third-party cookies. However, it has been criticized for potentially shifting control from third parties to Google itself, rather than truly enhancing user privacy. Austrian privacy non-profit noyb has pointed out that Privacy Sandbox might still enable user tracking without offering clear and transparent consent mechanisms.

Controversies Surrounding the Topics API

A core component of Privacy Sandbox, the Topics API, categorizes users’ interests into predefined topics based on their browsing histories. This information is then used to serve personalized ads. Critics, including Apple, have raised concerns about the potential for this system to be exploited for user profiling and re-identification.

John Wilander of Apple highlighted significant implementation loopholes, warning that data brokers could exploit the Topics API to build extensive profiles of users by periodically querying the API and combining the information with other data points. “What patterns will emerge when data brokers and trackers can compare and contrast across large portions of the population?” Wilander asked. He emphasized that browsers should not facilitate such extensive data collection and usage.

Regulatory and Competitive Challenges

Privacy Sandbox has also encountered regulatory challenges, with concerns that it might give Google an unfair advantage in the digital advertising market. This has complicated the rollout process, as regulators scrutinize whether the new technology might stifle competition.

The U.K. Competition and Markets Authority (CMA), which has been closely monitoring Google’s changes, is now evaluating the impact of this latest announcement. “Instead of removing third-party cookies from Chrome, it will be introducing a user-choice prompt, which will allow users to choose whether to retain third-party cookies,” the CMA stated. The CMA, in collaboration with the Information Commissioner’s Office (ICO), will carefully consider Google’s new approach to Privacy Sandbox.