Google isn’t removing third-party cookies in Chrome

What is changing with Google’s Privacy Sandbox?

The headline is that Google is abandoning its plans to depreciate third-party cookies in Chrome. Instead of phasing out third-party cookies, Google is proposing a new opt-out system that allows users to choose whether third-party cookies function.

Here’s a quick snippet from Privacy Sandbox VP, Anthony Chavez’s statement:

“Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time. We’re discussing this new path with regulators, and will engage with the industry as we roll this out.”

In other words, Google is no longer trying to replace third-party cookies with a new tracking system of its own. Instead, it’s proposing a new opt-out system that will allow users to control how cookies track their behaviour across the web.

Of course, the new proposal will need the green light from regulators before Google can push ahead. However, an opt-out system for existing tracking technologies shouldn’t raise any of the privacy or competition concerns that previous proposals did.

Why the sudden change of heart from Google?

While the news is sudden, Google’s struggles with depreciating third-party cookies are nothing new.

The Privacy Sandbox initially pledged to phase out third-party cookies by 2022. However, it postponed the plans until 2023 and, then, 2024, before a third delay vaguely committed to some point in 2025.

Regulators are Google’s biggest hurdle in phasing out third-party cookies. In April 2024, the UK’s Competition and Markets Authority (CMA) published its latest findings (Q1 2024) from an ongoing investigation into Google’s Privacy Sandbox proposals.

The update raised the number of potential concerns to 111, up from 74 in the previous report where the CMA warned: “Google cannot proceed with third-party cookie deprecation until our concerns are resolved”.

Industry pressure was also ramping up on Google, particularly in the advertising space, where it generates the vast majority of its revenue.

In June, ad tech provider Criteo revealed test results indicating publishers would lose an average of 60% of their ad revenue from Chrome under the current Privacy Sandbox proposal.

This prompt followed research commissioned by Movement for an Open Web (MOW) warning that the terms of service for Google’s proposed Privacy Sandbox “would be found to be unfair and illegal if contested in a court”.

Is this a win for advertisers?

Google’s statement doesn’t give us a lot of information to work with, but advertisers won’t be the only ones welcoming the news. Most of Anthony Chavez’s statement praises the potential of Privacy Sandbox and reaffirms Google’s stance that “overall performance… will improve over time as industry adoption increases”.

Then, he drops the most telling line of his statement: “At the same time, we recognize this transition requires significant work by many participants and will have an impact on publishers, advertisers and everyone involved in online advertising.”

Google’s battle with regulators and privacy advocates in recent years has left advertisers and publishers slipping down the list of priorities.

Aside from publishers losing an average of 60% in ad revenue from Chrome, the same Criteo research found that Google would stand to see its advertising market share rise from 23% to 83% – a 360% increase.

Meanwhile, findings from Teads in May 2024 revealed that two-thirds of publishers were unprepared for Google’s cookieless proposals.

Obviously, Google is in a difficult position with balancing privacy concerns and ad performance. Most advertisers understand this, but implementing a system that increases market share at the disadvantage of advertisers never made sense.

Let’s see what the regulators say next

Anthony Chavez specifically mentions the UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO) in his statement.

The CMA says it will work closely with ICO “to carefully consider Google’s new approach to Privacy Sandbox”. It also says that, given the timing of Google’s announcement, it will not publish its planned quarterly update report at the end of July.

Meanwhile, ICO Deputy Commissioner, Stephen Bonner, said: “”We are disappointed that Google has changed its plans and no longer intends to deprecate third party cookies”.

Got questions?

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