Google Inc. (GOOGL.US) has abandoned plans to phase out third-party cookies and adopted a user choice model instead.
Alphabet(GOOGL.US) Google announced recently that it would abandon its plan to phase out third-party cookies. After a series of setbacks, Google has decided to keep the ubiquitous tracking technology known as “cookies” in place, despite opposition from a number of digital advertising companies and regulators.
For years, Google has been working on its “Privacy Sandbox” plan to replace cookies with other tools to serve advertisers. However, in a blog post on Monday, Google’s vice president Anthony Chavez said the company would now take a new approach, introducing a new user experience in Chrome browsers that would allow users to make informed choices that apply to the entire browsing process and that can be adjusted at any time.
The move has raised concerns among regulators. The UK’s Competition and Markets Authority (CMA), which had previously expressed concerns about Google’s plan to phase out third-party cookies and worried that the changes could hinder competition in the digital advertising market, said it would seek views on Google’s new initiative by August 12.
The Open Internet Coalition, an advertising industry group that has been lobbying the CMA to block the rollout of Privacy Sandbox technology, said the change marked Google’s explicit acknowledgement that its closed Open Internet plan had failed.
“We have been calling for Privacy Sandbox to compete on its merits,” said James Rosewell, co-founder of the Open Internet Coalition. “If advertisers like it and consumers value the privacy benefits, then it will be adopted. What is unacceptable is that in the absence of other options, we are being forced to market this solution.”
Some privacy advocates were disappointed by Google’s decision, saying that regulators, consumers and brands have all come to recognize the privacy issues associated with cookies and have been working to find more privacy-friendly solutions.
Adam Schenkel, executive vice president of GumGum, a digital advertising technology company that specializes in delivering ads without personal data, said, “Google’s decision is short-sighted, especially in the privacy space.”
Google’s shift is likely to have far-reaching implications for the digital advertising market. While Google says it will continue to provide tools from its Privacy Sandbox plan to developers, advertisers and publishers may need to rethink their tracking and measurement strategies. Meanwhile, users will face more choices and responsibilities to ensure their privacy is adequately protected.
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