As a surprise, Google rolled out an update on Jul 22, 2024, naming it as ‘A new path for Privacy Sandbox on the web’. In that update, Google describes its decision to NOT remove third-party cookies from Chrome. The previous move on removal was intended to align Chrome with the privacy practices of Safari and Firefox but has been shelved after years of testing and delays.
Read on and get a detailed look at the decision, its meaning, and what to expect next.
Background of the Decision
The original plan was that Google would phase out third-party cookies from Chrome by default to make user privacy better. This change was to address privacy concerns. Also, it was meant to align with the cookie-blocking strategies already adopted by other browsers. However, Google has decided to halt this plan after considerable testing and delays for almost 4 years.
Google’s New Approach
On July 22, Google announced a major shift from its previous plan related to the privacy strategy. Now, instead of eliminating third-party cookies, Google will introduce a new feature in Chrome. It will allow the users to make more informed choices about their privacy settings. This approach will offer options such as:
- Retaining Third-Party Cookies; means that users can choose to keep third-party cookies active.
- Using Google’s Topics API; means a semi-anonymous way of tracking user interests.
- Opting for Semi-Private Browsing; means better privacy options without deleting the cookies.
- FLoC (Federated Learning of Cohorts)
The final and explicit implementation details are still under discussion with regulators.
This new change is meant to give users better control over their browsing experience with Google Chrome. However, it still considers the needs of the advertising industry while doing that.
Regulatory and Industry Reactions
Recently Apple’s criticisms about Chrome’s tracking practices make the timing of this decision notable. The UK’s Competition and Markets Authority (CMA) responded that they must carefully review Google’s new proposal.
The review process will include a period for industry stakeholders to provide feedback. Also, it could impact the final implementation of the new privacy controls.
The Movement for an Open Web (an ad industry group) criticized Google’s reversal. They described it as the admission that their previous plan to enclose the Open Web had failed. James Rosewell (co-founder of the group) argued that the Privacy Sandbox should be allowed to compete on its merits instead of being imposed on the market and also eliminating other choices.
Impact on Users and Advertisers
This new update for Chrome’s approximately 3 billion users means their default browsing experience will remain largely unchanged for now. Also, the new feature will allow them to manage their privacy settings more minutely. However, if many users do not engage with the given privacy options it will potentially limit the effectiveness of these new privacy implementations.
On the other hand, advertisers’ uncertainty around third-party cookies continues. Google’s recent tests of Privacy Sandbox technologies exhibited promising results with a 97% recovery in conversion value for Google Display Ads. Along with that, it showed an 89% recovery of conversions per dollar.
However, the effectiveness in re-engaging customers was less through remarketing. It showed a 55% recovery in spending.
These results show how Google’s privacy solutions have both potential and limitations aspects.
However, the Privacy Sandbox has also faced criticism for potentially introducing new privacy risks and for benefiting Google’s own advertising business unfairly.
Future Developments
Google’s updated plan to implement a new user-choice feature will be gradually rolled out. This change will allow users to make privacy decisions that apply across their web browsing experience.
Google has stated that it will continue developing Privacy Sandbox APIs and add anti-IP tracking protection for users to make the privacy protections better for Incognito Mode users.
Moreover, their decision to delay the third-party cookies phase-out signifies an attempt to balance user privacy, the needs of the advertising industry, and its business interests. Also, they are committed to working closely with regulators. The CMA, ICO, and other regulatory bodies will play an important role in examining the new plan and to make sure that it meets privacy standards.
Conclusion
Google cancelling the planned removal of third-party cookies marks a significant change in its privacy strategy. Users will soon have more options to control their browsing privacy but the full impact of these changes still remains uncertain and will be closely watched. As Google continues to run by regulatory feedback and industry concerns, web privacy and advertising aspects may change in new and unexpected ways in the future. The ongoing development of Privacy Sandbox technologies and user privacy options will play a critical role in shaping it.
