In a surprising turn, Google announced Monday that it will no longer phase out third-party tracking cookies from its Chrome web browser. Instead, the company will implement a new prompt allowing users to choose their tracking preferences across Google's search products.
This decision has significant implications for the advertising industry, which had been scrambling to find alternatives to cookies amid Google's plans. Google's initial announcement in 2020 to eliminate third-party cookies by 2022 had already been delayed multiple times, with the most recent deadline pushed to 2025. Due to antitrust concerns, the UK government also asked Google to pause its plans.
To replace cookies, Google tested several initiatives through its Privacy Sandbox, a set of proposals developed in consultation with the ad industry. These included FLoC (Federated Learning of Cohorts), which was scrapped in 2022, and a product called "Topics," which allowed ad placement based on users' browsing activity. Despite these efforts, only some solutions gained full support from industry partners and regulators.
Google acknowledged the difficulty of rallying industry-wide support for a single cookie replacement. In a blog post, Privacy Sandbox VP Anthony Chavez explained that transitioning away from cookies "requires significant work by many participants and will impact publishers, advertisers, and everyone involved in online advertising."
Instead of eliminating cookies, Google will introduce a new experience in Chrome that allows users to make informed choices about how they are tracked across the web, with the ability to adjust these preferences at any time. This approach is similar to Apple's 2021 app tracking changes, which emphasized user privacy but faced criticism for being anti-competitive.
Nevertheless, Google's shift away from its initial plan pushed the industry toward privacy-focused ad-tracking solutions. As most web browsing in the U.S. (66%) occurs on Chrome, the industry has been compelled to find alternatives to cookies to sustain their businesses. Solutions like Universal IDs, which rely on hashed email and phone number data, and the prioritization of first-party data collection have emerged as new standards.
Joe Root, CEO of publisher tech firm Permutive, noted that Google's decision might have a limited practical impact, as a significant portion of internet users have already turned off third-party cookies.