After four years of deliberation and consultation with UK regulators and industry, in a dramatic about-face, Google has scrapped plans to ban third-party cookies on its Chrome browser.
Named ‘Privacy Sandbox’, the global initiative has not been abandoned completely according to Google. Instead, there will be a new approach that “lets people make an informed choice that applies across their web browsing” which users can “adjust…at any time”. The Google statement is ambiguous and does not appear to provide a clear way forward.
However, commentators are making their interpretations. According to intellectual property lawyers Bird & Bird, Google “appears to be considering a browser-based consent mechanism.” Such technologies allow users to set their privacy preferences at the browser level, which websites and online services can automatically detect and respect.
Given the general direction of travel towards increased data privacy, organisations in the UK, Europe and beyond are forging ahead with plans to pivot away from third-party cookies. Apple’s Safari and Mozilla’s Firefox browsers have blocked third-party cookies by default, and consumers increasingly opt out.
James Rosewell, co-founder of Movement for an Open Web, the organisation whose complaint kicked off the UK Competition & Markets Authority (CMA)’s investigation into Google’s Privacy Sandbox plan, hailed it a “clear admission by Google” its plan to “enclose” the open web was failing. “Their goal was to remove the interoperability that enabled businesses to work together without interference from monopolists, but a combination of regulatory and industry pressure has put paid to that,” he said.
Performance Marketing World captures other industry responses. Luke Regan, VP, Managing Partner, DAC Group UK, said: “If your first reaction was to cheer this news, I’d suggest taking a breath to consider if your current strategies are too reliant on third-party cookies…Perhaps the biggest wake-up call from the cookies saga is that any time we find our advertising performance heavily reliant on the whims of a single big tech player, we should rapidly work to diversify and de-risk.”
Katie Eyton, Chief Ethics and Compliance Officer, Omnicom Media Group UK, said: “The time advertisers spent preparing for a more privacy-focused future has not been wasted. Cookie erosion is here already, with many other browsers and environments already blocking or restricting third-party cookies…Meaningful consent, underpinned by transparency and fair choice architecture will be a key area of focus for the future.”
And Leonard Newnham, Chief Data Scientist, LoopMe, said: “The reprieve for third-party cookies doesn’t change the fact that most consumers don’t want to be tracked across the web. The future is privacy-centric, and organisations must embrace tools that allow them to achieve effective advertising performance in a way that doesn’t compromise consumers’ privacy.”
What next? More twists in the cookie saga?
The CMA said it would carefully consider Google’s new proposals and work closely with the UK’s Information & Commissioners Office (ICO). A spokesperson for the CMA said it welcomed views on the revised approach, including implications for both consumers and markets, and will run a new consultation process until 12 August 2024.
Despite the temporary reprieve for cookies savvy marketers will continue to evaluate the implications of the cookie phase-out, upskill on strategies and tech that prioritise privacy; and work closely with legal and compliance departments to ensure data practices align with regulations. Organisations will refocus investment on first-party data gathered directly through websites, apps and email marketing; and encourage users to share data through loyalty programs, personalised content and exclusive offers. This will ensure audience engagement can be maintained alongside compliance with emerging global privacy standards.
