Google Reverses Plan to Eliminate Third-Party Cookies in Chrome, Easing Advertiser Concerns

In a recent blog post, Google announced its decision to continue supporting third-party cookies in its Chrome browser, a significant shift from its earlier plans to phase them out. This reversal comes after four years of navigating regulatory pressures and feedback from the advertising industry regarding its proposed Privacy Sandbox.

Third-party cookies, small pieces of data used to track users' web activity and deliver personalized ads, have long been a cornerstone of online advertising. Initially, Google aimed to replace these cookies with its Privacy Sandbox, a system designed to create user profiles for advertisers without extensive data collection. However, the company now plans to introduce an opt-out option for third-party tracking cookies in Chrome, allowing users to make an informed choice about their privacy settings.

Google’s Privacy Sandbox was intended to provide a more secure alternative, aligning Chrome with other browsers like Apple’s Safari and Mozilla Firefox. Despite its security benefits, the transition posed significant challenges for the online advertising ecosystem and would have increased Google’s control over consumer data.

Originally set to eliminate third-party cookies by 2022, Google faced numerous delays. "We are proposing an updated approach that elevates user choice," stated Anthony Chavez, Google's VP of Privacy Sandbox, in the blog post. "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."

Third-party cookies have been integral to online advertising for decades, contributing to an industry projected to be worth $723 billion by 2026. Advertisers utilize cookies to target individuals with relevant ads, but these cookies also raise privacy concerns, including potential data misuse and discriminatory practices.

Chrome, with a 66% global market share according to Statcounter, remains the world’s most popular browser. Google, the leading search engine with a 91% market share, generated $237 billion in online ad revenue in 2023. This dominant position underscores the company's substantial influence in the advertising market, making its decisions highly impactful.

Lena Cohen, a staff technologist at the Electronic Frontier Foundation (EFF), remarked, "Google's decision to continue allowing third-party cookies, despite other major browsers blocking them for years, is a direct consequence of their advertising-driven business model. With nearly 80% of Google's revenue derived from online advertising, it's clear why Chrome is putting advertisers' interests above users' privacy."

While Google is not abandoning the Privacy Sandbox entirely and will still provide its APIs, it plans to work closely with the UK’s Competition and Markets Authority and other regulators to ensure a more private web experience. Users concerned about third-party cookies can use tools like the EFF’s Privacy Badger extension, available for Chrome, Firefox, Edge, and Opera, to block invisible trackers.