What next for Google and third-party cookies?

In what has come as a surprise move, Google has U-turned on its decision to block third-party cookies on its browser, Google Chrome. The decision has been met with responses of relief from the digital advertising world; and disappointment from the data privacy world.

Third-party cookies enable digital advertisers to showcase relevant ads to users across the world wide web based on your historical activity across the internet. These cookies are essentially the reason why you’ll see loads of ads for a topic or product you’ve recently searched for online.

Google’s original plan to crack down on third-party cookies was problematic with digital advertisers, meaning they’d essentially be shooting in the dark when it comes to ad segmentation, which would’ve almost certainly led to a decrease in conversions and revenue. Once the dust settles, this will be seen as good news for advertisers, and their ability to accurately segment their ads to relevant consumers.

Google’s Privacy Sandbox project, originally aimed to clamp down on third-party cookies, has been reshaped as a technological initiative aimed to “both protect people's privacy online and give companies and developers tools to build thriving digital businesses.”

The UK's Information Commissioner’s Office (ICO) responded saying they were “disappointed that Google changed its plans” and that “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.” I think we’ve all felt somewhat violated by the accuracy of some of the advertisements that are put in front of us so this reaction from the ICO isn’t a surprise. However, Google has been clear in their intentions to let Chrome users choose their preferences on this front. If Google is to back-up their historical commitments to their users’ privacy, they should take an opt-in approach - although this seems unlikely.

Whilst it’s difficult to say what direction Google will take the Privacy Sandbox with very little information available, the concept of “a new experience in Chrome that lets people make an informed choice that applies across their web browsing” - as announced by Anthony Chavez, VP Privacy Sandbox - could suggest that digital advertisers’ sigh of relief could be short lived, with more changes likely to be on the horizon.

These changes are likely to lead to Google making further inroads into the advertising space. As mentioned by Chris Vallance at the BBC, “the UK competition watchdog the Competition and Markets Authority (CMA) intervened in 2021, fearing the search giant's plans could cause even more advertisers to use Google’s own systems.” With Chrome being the most popular browser in the world, in addition to its dominance in the search engine market, Google’s ability to move the dial on digital advertising strategies will almost certainly force advertisers to adapt and lead to a major shift in the industry.

The lack of clear and fair competition in these areas sparks concerns, and as we’ve seen with many tech based regulations, the regulators and fair-market institutions are often slow to react (albeit they are often in the dark). Add to the fact that Google has played by its own rules when it comes to paying corporate taxes across the globe at the expense of individuals, the giant’s popularity - and arguably, growing necessity - masks the villainy and dominance it continues to build up under our noses.

No matter what the outcome of the Privacy Sandbox project, I suspect that it will likely fuel the Alphabet machine, more than it will champion any form of online privacy.