Google has U-turned on a decision to remove cookies from its Chrome web browser, ending a four-year effort to protect users’ privacy by phasing out the invasive tracking technology after pushback from advertisers and regulators.
The search giant on Monday unexpectedly announced it was pursuing “a new path for privacy” that would prompt users with the option to turn cookies on or off, but ultimately retain them within Chrome.
The decision reverses a 2020 pledge to eliminate all cross-website cookies within two years, similar to Apple’s policy of blocking third-party tracking by default on its Safari browser on privacy grounds. Google’s move now leaves it in a similar position to the iPhone maker.
Cookies — small text files inserted in users’ browsers to track their online behaviour — are the main tool used by online advertisers to monitor users across multiple websites and target them with ads based on their interests.
The move was controversial from the outset, with the digital advertising, ad tech and publishing industries complaining it would destroy their business models, further enshrine Google’s advantage in consumer data collection over its advertisers and thereby force them to pay more for its ad-targeting services.
The project quickly fell behind schedule and in 2021 UK regulators opened an investigation into whether Google’s plans were anti-competitive. While it ultimately managed to assuage the UK’s competition authority’s concerns, the company’s first attempt to replace cookies, known as “Floc”, was abandoned after concerns it would not protect privacy enough.
The deadline was pushed back again in 2022 to give advertisers more time to incorporate and adjust to the changes.
Google vowed to continue and as recently as February said it had started to remove some cookies and aimed to switch off all third-party cookies by the end of the year. However, the UK Information Commissioner’s Office still had issues with the proposed replacement technologies, calling them “deeply flawed”, which contributed to the decision to cancel.
“We recognise this transition requires significant work by many participants and will have an impact on publishers, advertisers and everyone involved in online advertising,” said Anthony Chavez, Google’s manager in charge of its Privacy Sandbox project. “In light of this, we are proposing an updated approach that elevates user choice...We’re discussing this new path with regulators, and will engage with the industry as we roll this out.”
ICO deputy commissioner Stephen Bonner said the regulator is “disappointed that Google has changed its plans” because “blocking third-party cookies would be a positive step for consumers”.
“Despite Google’s decision, we continue to encourage the digital advertising industry to move to more private alternatives to third-party cookies — and not to resort to more opaque forms of tracking,” he added. “We will monitor how the industry responds and consider regulatory action where systemic non-compliance is identified for all companies including Google.”
The UK’s Competition and Markets Authority said it is “considering the impact of this announcement and welcome views until 12 August”.
Copyright The Financial Times Limited 2024
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