Google backtracks on third-party cookies

Google has abandoned plans to phase out third-party cookies in favour of a new approach that ‘elevates user choice’. Google had previously announced, as part of its Privacy Sandbox, that it would phase out support for third-party cookies in the Chrome browser. As recently as April 2024, it envisioned this would start in early 2025.

Instead, Google wants to roll out a new solution involving a one-time prompt enabling users to choose and apply their cookie preferences across all Google platforms.

Why third-party cookies?

We detailed how third-party cookies work here.

They are placed on a user’s device by someone other than the operator of a website or app, usually advertisers. The cookies enable those ‘third parties’ to track the user’s activity on websites or apps, which they then use to build a profile, including sites visited and products the user buys or may be interested in. This technology is heavily used by advertisers who target customers based on their perceived interests – think about the last advert you saw while scrolling through your favourite social media app. Targeted advertising has proven to be a hugely successful and efficient way of marketing products and services.

What impact will this announcement have?

The announcement will, most notably, come as a relief for those in the advertising industry. The abandoned phase-out was initially intended to cover the Google Chrome browser, which has an estimated worldwide usage share of over 60%, and then extended to cover Android devices, which comprise approximately 70% of all devices worldwide. Given the respective market shares of both Google Chrome and Android, the proposed phase-out could have been the most significant change in online advertising we have ever seen. Instead, we will see more third-party cookies, especially on Google Chrome.

Regulatory reaction and next steps

The Information Commissioner’s Office (ICO) expressed disappointment at Google’s decision, saying ‘Despite Google’s decision, we continue to encourage the digital advertising industry to move to more private alternatives to third party cookies – and not to resort to more opaque forms of tracking.’ The Competition and Markets Authority also announced they would work closely with the ICO to consider Google’s new approach to the Privacy Sandbox carefully.

For more information on the legal implications of your digital advertising, contact a member of our privacy & data protection team.