Google announced on Monday that it plans to retain third-party cookies in its Chrome browser, reversing its previous commitment to phase out these small tracking codes used on the internet. This decision comes amid concerns from advertisers, who are Google's primary revenue source, that the elimination of cookies in the world's most popular browser would restrict their ability to gather data for personalized ads, thereby making them reliant on Google's user databases. The UK's Competition and Markets Authority had previously scrutinized Google's plans, expressing concerns that it could hinder competition in digital advertising.
Anthony Chavez, vice president of the Google-backed Privacy Sandbox initiative, stated in a blog post that instead of phasing out third-party cookies, Chrome will introduce a new feature allowing users to make informed choices about their web browsing preferences, which they can adjust at any time. Since 2019, Google's parent company, Alphabet, has been developing the Privacy Sandbox initiative, which aims to enhance online privacy while supporting digital businesses, with a key objective being the phase-out of third-party cookies. Cookies are used by websites and advertisers to identify and track individual web users, but they can also be employed for unwanted surveillance.
In the European Union, the use of cookies is regulated by the General Data Protection Regulation (GDPR), which requires publishers to obtain explicit user consent for storing cookies. Major browsers also offer the option to delete cookies at will. Chavez noted that Google is collaborating with regulators such as the UK's CMA and Information Commissioner's Office, as well as publishers and privacy groups, on this new approach, while continuing to invest in the Privacy Sandbox program. The announcement received mixed reactions, with some viewing it as a relief for advertisers who no longer need to abruptly stop using third-party cookies, while others, like the Electronic Frontier Foundation, expressed concerns about potential consumer harm from predatory ads targeting vulnerable groups.