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Privacy

Google Halts 3rd Party Cookie Phaseout

Why This Alert Is Important

Google's decision to abandon its plan to eliminate third-party cookies affects advertisers, publishers, and privacy professionals. Understanding this shift is crucial for future data privacy and online advertising strategies.

Overview of Google's Decision

Google has announced that it will no longer proceed with plans to phase out third-party cookies on its Chrome browser. Initially slated for January 2024, the elimination of third-party cookies faced numerous technical challenges and delays. The U.K. Competition and Markets Authority (CMA) had scrutinized the initiative due to potential competition-related concerns, which contributed to Google's decision to halt its efforts. Instead, Google will focus on developing more privacy-preserving user tracking norms through its Privacy Sandbox initiative.

Google's Privacy Sandbox, including the Federated Learning of Cohorts (FLoC) and its successor "Topics," aimed to reduce cross-site tracking while still supporting targeted advertising. However, technical hurdles and privacy concerns, such as FLoC's potential for reidentifying users, delayed these efforts. Google's decision underscores the complexity of balancing user privacy with the needs of the advertising industry.

The decision to retain third-party cookies impacts various stakeholders:

  • Advertisers will continue to rely on third-party cookies for targeted advertising and campaign measurement.
  • Publishers can maintain their current revenue models dependent on ad tech solutions utilizing third-party cookies.
  • Privacy professionals must stay vigilant about evolving privacy standards and ensure compliance with existing regulations.

Google’s updated approach to user privacy aims to address consumer demands while navigating regulatory scrutiny. The ongoing development of the Privacy Sandbox signifies Google’s commitment to finding alternative solutions that harmonize privacy and advertising needs.

Challenges for Privacy Advocates

The decision to postpone the phaseout of third-party cookies poses several challenges for privacy advocates. Primarily, allowing these cookies to persist means that the extensive data collection practices employed by advertisers will continue without significant limitations. This raises concerns about user consent, as many individuals are unaware of how their browsing habits are tracked and utilized by third parties for targeted advertising. Additionally, the ongoing use of third-party cookies may hinder the effectiveness of privacy protection measures that seek to empower users to control their own data. 

Furthermore, the reliance on Google's Privacy Sandbox and its initiatives, like Topics, may not sufficiently address risks of reidentification or tracking across different platforms, which is a critical issue for privacy advocates. As new tracking methods are developed within the Privacy Sandbox framework, advocates worry about the potential for these technologies to create new forms of surveillance under the guise of user privacy. The challenge lies in ensuring that any alternative approach genuinely enhances user privacy rather than merely rebranding existing tracking practices. Ultimately, privacy advocates must remain vigilant as the landscape continues to evolve and strive for transparency and robust privacy solutions that place user rights at the forefront.

Google’s decision allows advertisers and publishers to continue using third-party cookies for targeted advertising on Chrome, the world’s most used browser. While this postpones the need to adopt new technologies for user insights, businesses still must obtain valid consent from website visitors and maintain robust consent management practices to meet evolving privacy regulations. Exterro’s Consent Management solution is crucial in this context, as it streamlines consent management across all platforms and channels, including third-party cookies.

Fahad Diwan, JD, FIP, CIPP/M, CIPP/C, Director of Product, Privacy, Exterro

Data Privacy Tip

Learn how the Norwegian data protection authority,  Datailyset’s definition of consent—requiring it to be specific, informed, freely given, unambiguous, and granular—requires organizations to change how they obtain and manage consumer consent.

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