Google retains third-party cookies amid privacy and antitrust pressure

By Mofeoluwa Awe

Google has reversed its decision to phase out third-party cookies, instead opting to continue supporting them in Chrome. This decision follows evolving feedback from various stakeholders, including publishers, developers, regulators, and the advertising industry regarding Google’s Privacy Sandbox initiative. Google’s shift reflects ongoing changes in the digital ecosystem, as well as regulatory pressures, such as the company’s recent antitrust legal battles.

The Privacy Sandbox, launched in 2019 as a cookies alternative, was initially designed to address privacy concerns while maintaining advertising effectiveness. However, feedback has led Google to pause its cookie deprecation, continuing to support third-party cookies in its browser for the foreseeable future. This shift of course raises concerns among privacy advocates who say it undermines the gains gained toward increased transparency and trust in online advertising.

While cookies are retained, Google remains committed to improving Chrome’s privacy features, such as improving Incognito mode and introducing new IP protection features by 2025. In addition, the company intends to update its Privacy Sandbox roadmap is response to ongoing industry feedback. Despite this, Google’s move is seen by some as a strategic move to maintain control over the advertising ecosystem, especially given the regulatory pressure that has surrounded its monopoly in online advertising.

The reactions to the announcement have been divided. Some industry executives see this as a positive move towards interoperability, providing greater flexibility in digital advertising. Others caution that continuing to rely on third-party cookies risks undermining user confidence. Many marketers, who have already shifted their focus to first-party data and Cookieless environments such as connected TV and mobile, believe that this decision will not alter the industry’s trajectory.

The increasing regulatory scrutiny of Google’s advertising tactics, notably its dominant position in video advertising, adds to the complexity. Legal fights against monopolistic behaviour, like last week’s verdict on Google’s ad methods, have led calls for greater transparency in the company’s video advertising activities. Regardless of Google’s cookie policy, the changing digital advertising landscape is encouraging advertisers to embrace more privacy-conscious techniques.

While Google’s statement has caused controversy, it may only be a brief stop before more important changes take place in the following years. Privacy-complaint data techniques, new targeting models, and privacy legislation are expected to transform the future of digital advertising, rendering cookies obsolete over time.