Google’s recent announcement regarding third-party tracking cookies in its Chrome browser has taken many by surprise. Instead of deprecating these cookies as previously planned, Google is now proposing that users should have the option to accept or deny ad tracking at the browser level. While this move is still subject to regulatory oversight in the U.K., it could have significant implications for Google’s Privacy Sandbox project, which aims to provide personalized ad targeting without the use of cookies.
The decision to retain support for tracking cookies is unexpected given Google’s efforts over the past four years to address concerns about tracking-based privacy risks. The company had been working on developing Privacy Sandbox as a privacy-friendly alternative to third-party cookies. However, the pushback from advertisers and publishers, as well as regulatory scrutiny from the U.K.’s competition regulator and data protection watchdog, has forced Google to reconsider its plans.
The tension between competition and privacy has become a central issue in this saga. Advertisers argue that Privacy Sandbox would only solidify Google’s dominance in the adtech industry, while making advertisers and publishers more dependent on the company. Some publishers have reported a decline in revenue during early tests of Privacy Sandbox. However, it’s worth noting that cookie tracking is considered unlawful due to privacy violations. Advertisers may need to accept lower profits if they want to comply with privacy laws.
The U.K.’s data protection watchdog, the ICO, expressed disappointment with Google’s decision not to deprecate third-party cookies. The ICO has long recognized the privacy concerns associated with cookie-based tracking and profiling. The regulator continues to encourage the adoption of more private alternatives to third-party cookies and warns of possible regulatory action against non-compliant companies.
The competition regulator, the CMA, has intervened in this case due to concerns that Privacy Sandbox could further concentrate advertising spend on Google’s ecosystem, potentially distorting competition. The CMA will closely consider Google’s revised approach and its implications for consumers and market outcomes.
With the future of Privacy Sandbox and the web’s business models at stake, Google’s proposal to center consumer choice could provide a way out of the competition versus privacy debate. Allowing users to decide whether they want to be tracked or not could resolve the issue. However, it’s worth noting that if the ICO had enforced data protection laws on the adtech industry from the beginning, users would have already been given a clear choice regarding tracking and profiling.
The coming months will be crucial in determining the direction of the web and its business models. The decision by the U.K. regulators will have a significant impact. Privacy and security researcher Lukasz Olejnik suggests that regulators are likely to give users the option of choice, which would incentivize the adoption of Privacy Sandbox. Ultimately, user choice may shape the future of online privacy.
In conclusion, Google’s decision not to deprecate third-party tracking cookies in Chrome is a surprising development that has sparked debate about the balance between competition and privacy. The outcome of this decision will have far-reaching implications for online business models and the future direction of the web.
