The advertising industry is grappling with Google’s decision to abandon plans that would have allowed users to opt out of being tracked by advertisers.
Google announced that it will retain third-party cookies in their current form and will not introduce a stand-alone “user-choice” button as part of its Privacy Sandbox initiative.
“Chrome’s move to support third-party cookies showcases its continued support for interoperability across the open web,” said Anthony Katsur, CEO of IAB Tech Lab.
“Tech Lab believes Chrome’s decision is a net positive for publishers, particularly the mid- and long-tail. However, we caution the industry that this decision shouldn’t stop privacy innovation nor the pursuit of first-party addressability solutions.” said Katsur
Mark McEachran, vice president of product at Basis Technologies, somewhat agreed, adding: “Keeping the cookie at least lets the user control when they want to wipe their slate clean.”
However, not everyone shared this view. Adam Schenkel, executive vice president of Global Platform Strategy and Operations at GumGum, expressed his concerns stating that Google’s move “undermines years of industry progress toward privacy and user control.”
Schenkel noted that this decision comes at a time when consumers are increasingly aware of how they are tracked online. “The internet doesn’t have a targeting problem – it has a trust problem,” he wrote.
“The solution isn’t clinging to outdated surveillance tactics that exploit personal data; it’s building new models and strategies that respect privacy and meet people in the right moment, with technology like contextual advertising and attention measurement,” he said
Google’s decision has shaken the industry, especially as the company faces increasing pressure to change its platforms and fend off legal action from the U.S. Department of Justice (DOJ).
The DOJ, after two judges ruled that Google is a monopoly in search and publishing, is attempting to implement remedies that could further dismantle its dominance.
This week, the DOJ and a coalition of states revealed proposed remedies aimed at reducing Google’s monopoly in search and search advertising, including divesting Chrome and prohibiting default payments.
The remedies, detailed in a report, cover five key areas designed to promote competition.
One remedy would end payments that freeze the ecosystem, including Google’s multibillion-dollar payments to Apple and Android device makers.
A divestiture of Chrome would separate it from Google. Chrome accounts for 35% of all Google search queries and generates billions in revenue from search advertising.
There is significant interest in acquiring the browser—particularly from Google’s rivals. According to Bloomberg, OpenAI is one company that would be keen to buy it.
“Yes, we would, as would many other parties,” Nick Turley, OpenAI’s head of product for ChatGPT, reportedly said when asked whether the company would seek to purchase Google’s browser.
As part of the remedies, Google would be required to share user data, search index coverage, and ad-performance data to help competitors train their models, improve search results, and enhance competition.
Additionally, Google would need to provide more detailed information to advertisers in search query reports and allow advertisers to opt out of broad and automated keyword matching. A technical committee would be appointed to oversee Google’s compliance with these requirements.
“These developments reflect a growing global consensus: unchecked tech monopolies are a threat to innovation, competition, and consumer choice,” wrote David Segal, vice president of public policy at Yelp, in a blog post.
“Whether through litigation, legislation, or regulatory enforcement, the tide is turning.” he said.
As Google faces increasing scrutiny from regulators and competitors alike, the company’s decision to maintain its third-party cookie model highlights the ongoing tension between innovation and privacy.
While some in the industry welcome the move as a way to preserve interoperability, others argue it undermines progress toward greater user control and transparency.
