Google has made a U-turn on its long-term plan to kill third-party cookies.
The tech giant committed to eradicating cookies – small files stored on computers which allow advertisers to track user behaviour across websites – on its market-leading Chrome browser four years ago.
Its stated aim was to ‘develop a set of open standards to fundamentally enhance privacy on the web, giving people more transparency and greater control over how their data is used’. However there were concerns that Google’s alternatives could be developed and implemented in ways that impeded competition in digital advertising markets.
As the replacement Privacy Sandbox initiative was repeatedly pushed back, UK competition watchdog the CMA secured commitments from Google to ensure fair and open competition.
Businesses scrambled to research alternative ways of reaching their target audience ahead of the switch-off, while trends suggested that consumers were growing less tolerant of wholesale behavioural monitoring.
However the spend may have been in vain after Google’s sudden reversal in favour of a new approach which it says will give users an ‘informed choice that applies across their web browsing’. It is discussing next steps with regulators.
The Information Commissioner’s Office, the UK’s data privacy watchdog, said it was “disappointed” by the decision.
“It has been our view that blocking third-party cookies would be a positive step for consumers,” added Stephen Bonner, deputy commissioner (regulatory supervision) at the ICO.
“The new plan set out by Google is a significant change and we will reflect on this new course of action when more detail is available.”
The CMA said it would “need to carefully consider Google’s new approach to Privacy Sandbox, working closely with the ICO in this regard, and welcome views on Google’s revised approach – including possible implications for consumers and market outcomes”.
Specialist technology and privacy lawyer Matthew Holman, partner at law firm Cripps, said the move “makes it look like Google is continuing to put advertising revenue ahead of the privacy rights and freedoms of its users”.
He said: “The great difficulty is that third-party cookies are the backbone of online behavioural advertising. They are the way that products or brands follow you around online.
“All the corporates that rely on Google for advertising revenue were sent into a panic by Google’s original announcement. Lots of time and money was spent on consultants, tech advisors and lawyers to analyse what could be done and, in particular, how to ensure digital marketing can continue as before.
“These solutions involved things like greater emphasis on first-party cookies, lookalike audiences on social media and other tech solutions. Whole project teams were set up.
“All that time and money and resource will essentially be money down the drain. Google has not endeared itself.
“However, the likely response from most organisations will be a sigh of relief because, despite all of the investment, most businesses were still not ready for this change to be implemented.”
Holman says that, in essence, it boils down to an acknowledgement from Google that the marketing industry was not ready for the change.
However, he added: “A cynical view would argue that Google didn’t want to upset its massive customer base for advertising, which makes up 80% of its revenue.”
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