This summer, Google made headlines when it paused its plans to do away with third-party cookies in its Chrome browser. This decision came after the tech giant struggled to satisfy a diverse group of privacy advocates, regulators, and advertisers. The reaction was swift; critics marked the decision as a significant setback and an acknowledgment of failure.
Shortly after this announcement, an article published by Digiday reported that Google executives were in “full-on damage control mode,” attempting to calm stakeholders both publicly and privately. On the other hand, the Electronic Frontier Foundation (EFF), a digital rights group, labeled the decision as detrimental to user privacy while being beneficial for Google’s business interests.
“By abandoning this plan, Google leaves billions of Chrome users exposed to online surveillance,” stated Lena Cohen from the EFF in her writings.
While other browsers, including Apple’s Safari, have already eliminated third-party cookies that track online behavior for targeted advertising due to privacy concerns, Chrome’s market dominance—with over a 65 percent share—made its decision to phase out cookies a crucial moment in tackling intrusive tracking technologies.
The announcement came as a surprise to everyone involved. So, what prompted Google to reverse its stance on third-party cookies, how will Chrome handle these online trackers in the future, and what will this mean for your privacy?
Google initially revealed that it would phase out third-party cookies in its Chrome browser back in 2020. However, the company has since delayed this decision multiple times in efforts to find a suitable replacement—including the now-defunct FLoC.
Although this might appear to be a retreat, Google maintains that its new strategy will provide users with more control over their privacy settings, while still accommodating those who prefer to keep third-party cookies. In a blog post, Google stated that it aims to empower users to “make an informed choice that applies across their web browsing, with the option to modify that choice whenever they like.”
As this plan develops, a Google representative emphasized to WIRED that it remains crucial for developers to have access to privacy-enhancing alternatives.
Sources familiar with the situation indicate that Google’s forthcoming strategy will closely resemble Apple’s App Tracking Transparency (ATT) feature. Launched in 2021, ATT mandates that advertisers must obtain explicit consent before accessing a user’s mobile advertising ID, also known as the identifier for advertisers (IDFA), for tracking purposes. This requires users to respond to a prompt with a “yes” or “no” regarding tracking when utilizing Apple’s iOS mobile platform.
Google’s Privacy Sandbox APIs, which are intended to minimize reliance on third-party cookies, will still be accessible. The company also plans to implement further privacy measures and is set to introduce IP Protection for Chrome’s Incognito mode.
In response to the backlash, Google has stated to WIRED that “enhancing user choice” for third-party cookies “is beneficial for privacy.”
“The current Privacy Sandbox is the result of years of feedback and interaction from privacy advocates, users, regulators, and various stakeholders in the industry,” remarks Google spokesperson Scott Westover. “As we advance, we will continue to work with the industry to foster a new era of online privacy collaboratively.”
Google may claim that it is retaining third-party cookies, but experts suggest that this tracking technology is effectively obsolete. As a result, advertisers are being pushed to explore alternative methods for monetizing their users.
“We should recognize that the worth and functionality of third-party cookies has essentially diminished to nothing,” asserts Nick Gernert, CEO of WordPress VIP. “Anyone drawing up plans that depend on data from third-party cookies may experience declining returns in the foreseeable future.”
The apparent demise of cookies is unlikely to affect Google significantly, as the company possesses a vast amount of data from various services beyond Chrome and can continue to target users without relying on cookies.
As reported in Google’s 2023 earnings report, $237.86 billion of the company’s $307.39 billion in revenue was generated through advertising. Ads featured on its search engine results page and other platforms like Gmail, Google Maps, and Google Play accounted for a significant $175.03 billion, representing 56.9 percent of total revenue. In addition, YouTube ads contributed $31.51 billion (10.3 percent of the total), while Google Network ads, which include advertisements on Google’s partner websites, generated $31.31 billion, or 10.2 percent of revenue. Notably, Network ad revenues declined by 4.5 percent last year, indicating a diminishing dependence of Google on this revenue stream.
Google recognizes that privacy-focused users may choose to decline cookies in Chrome, similarly to the response seen with Apple’s App Tracking Transparency (ATT) which led Facebook to incur a $10 billion loss. Currently, the opt-in rates for ATT vary between 12 percent and 40 percent across various app categories.
The mobile advertising sector has flourished in recent years, even with Apple’s ATT implemented, according to Jake Moore, a global cybersecurity advisor at ESET. He describes the results of ATT as “impressive” and posits that Google has been observing the effects of Apple’s regulations prior to launching its own version.
In the meantime, Google is already encouraging developers to operate as if they do not have cookies. The tech giant is proceeding with the assumption that even if 80 percent of users choose to opt out, having 20 percent of Chrome’s over 3 billion users is still a decent outcome.
Simon Bain, CEO of data and analytics firm OmniIndex, asserts that ensuring users have a conscious decision regarding cookies is “a good step in practice.” However, he emphasizes that Google must pay attention to the simplicity of the opt-out process.
“Is there any downside for users who choose to opt out?” Bain asks. “This is important because if the opt-out option is hidden within privacy settings and users experience a decrease in functionality or workflow due to this choice, then it can’t truly be considered a fair or valid decision.”
Google asserts that its revamped strategy enables individuals to “make an informed decision that is applicable throughout their web browsing” and states that users will have the ability to “change that decision at any moment.”
The goal is to ensure maximum usability. Insider sources have indicated that Google’s current strategy will feature a prominent global notification, meaning users won’t have to make selections on a site-by-site basis.
However, some experts express skepticism regarding Google’s intentions. Sean Wright, an independent security researcher, highlights that Google possesses “an immense amount of data on individuals,” which concentrates significant power in “a single organization.”
This level of control could jeopardize user privacy, according to Wright. “My concern is that a large, well-established company is creating its own ecosystem with minimal competition. This situation offers little motivation to improve user privacy.”
Conversely, Google asserts that it has taken feedback from a “diverse range of stakeholders” into account, including regulators like the UK’s Competition and Markets Authority, publishers, web developers and standards organizations, civil society, and those in the advertising sector. “This input has allowed us to develop solutions that are aimed at fostering a competitive and thriving marketplace beneficial for both publishers and advertisers, while also promoting the use of privacy-enhancing technologies,” the company states.
Nevertheless, achieving privacy is a challenging equilibrium for the world’s largest browser, whose business model heavily relies on advertising revenue.
Many are already aware of the privacy concerns, and if privacy is a priority for you, chances are you have switched from Chrome to another browser. If not, some alternatives to Chrome include Apple’s Safari, Brave, Vivaldi, Firefox, and the DuckDuckGo browser. Both Brave and Vivaldi are built on the same Chromium engine as Chrome, meaning they offer some similar functionalities.
