Why Google Is Delaying Cookie Blocking until 2023
Google’s fight against third-party cookies has lost some momentum. On June 24, Google said that the company is delaying the launch of an ambitious initiative to block cookie tracking on Google Chrome (the most popular browser in the world). Google will move the original January 22 date for blocking cookie tracking to later in 2023. That’s because cookie-blocking has caused considerable controversy among advertisers and publishers as well as scrutiny from anti-trust bodies.
What Is Google’s Cookie-Blocking Initiative?
In January 2020, Google announced it was going to phase out cookie tracking on Chrome. Google’s rationale: blocking enterprises from tracking user behavior across the web (which is done through third-party cookies) is good for consumer privacy. Google also said it was going to rely on its Privacy Sandbox initiative to develop alternatives to third-party cookie tracking.
What Has Google Done Since Announcing Its Plan to Block Third-Party Cookies?
Since January 2020, Google has moved forward aggressively. For instance:
- On January 25, 2021, Google elaborated on its progress building alternatives to third-party cookie tracking. Google said it has developed an open-source program where businesses, using on-device machine learning, can group people based on their common browsing behavior instead of using third-party cookies. This is referred to as FLoC (Federated Learning of Cohorts). According to Google, “Our tests of FLoC to reach in-market and affinity Google Audiences show that advertisers can expect to see at least 95% of the conversions per dollar spent when compared to cookie-based advertising.”
- On March 3, 2021, Google announced that the company will not build alternative tracking technologies -- or use those being developed by other companies -- for its own ad-buying tools to replace third-party cookies. In other words, Google will not build alternative identifiers to track individuals as they browse across the web, and Google will not use them in its products. This news was significant also because Google underscored its intent to push publishers and advertisers toward the use of first-party customer data (data collected from their own websites) to create personalized content: “We will continue to support first-party relationships on our ad platforms for partners, in which they have direct connections with their own customers. And we’ll deepen our support for solutions that build on these direct relationships between consumers and the brands and publishers they engage with.”
- On March 11, Google announced some product developments intended to make it easier for publishers to use their first-party data programmatically for ad buys – another example of Google pushing businesses toward the use of first-party data while Google erodes the value of third-party cookies.
How has Google’s Cookie-Blocking Initiative Been Received?
Google’s actions have sparked considerable controversy from advertisers and businesses such as Facebook that rely on cookie tracking to create personalized ads. They’ve argued that:
- The move creates an unfair advantage for Google. Businesses (including advertisers and technology companies that support them) argue that Google is trying to dominate online advertising by eliminating third-party cookies and twisting advertisers’ arms to work with Google’s Privacy Sandbox. Critics assert that blocking third-party tracking conveniently benefits Google-owned properties such as Google Search and YouTube, which rely on first-party data to serve up ads. Because these properties do not rely on third-party cookies, they stand to become more powerful. As John Nardone, CEO of ad sever company Flashtalking told The Wall Street Journal, “This is Google unilaterally trying to define the privacy standards for the internet,” said. “It’s not appropriate.”
- Google is going to make ads less relevant. Another argument is that blocking third-party cookies will result in businesses creating ads that are less personal and therefore less relevant, which will hurt both businesses and their audiences. This is a major contention by Facebook, which has campaigned vigorously against blocking cookies. (It should be noted that Facebook is also motivated by the threat to its own advertising business, which depends on tracking users across the web.)
The concerns about creating an unfair advantage have attracted the attention of anti-trust legislators around the world, including the U.S. Department of Justice and the European Union. In January 2021, the United Kingdom’s Competition and Markets Authority (CMA) announced its formal investigation of the Privacy Sandbox based on anti-trust concerns. In response, Google shared a number of commitments to ensure that development of the Privacy Sandbox would be fair to advertisers and in cooperation with the CMA.
Why Is Google Delaying the Roll-out of Cookie Blocking?
In a word: anti-trust. Sentiment from legislators around the world are becoming increasingly chilly toward Big Tech firms such as Google, and legislators are moving forward with anti-trust lawsuits. Google’s war against cookie tracking could not come at a worse time. In this context, the “unfair competitive advantage” argument against cookie tracking is building momentum.
In its June 24 announcement, Google noted that it is agreeing to cooperate with the Britain’s Competition and Markets Authority (CMA) on the roll-out. The delayed timeline is an outcome of a closer partnership with the CMA.
"We need to move at a responsible pace, allowing sufficient time for public discussion on the right solutions and for publishers and the advertising industry to migrate their services," Vinay Goel, privacy engineering director for Chrome, wrote in a blog post.
What Happens Next?
Google has proposed the following timeline:
- Stage 1 (Starting late-2022): Once testing is complete and APIs are launched in Chrome, Google will announce the start of Stage 1. During Stage 1, publishers and the advertising industry will have time to migrate their services. Google expects this stage to last for nine months and will monitor adoption and feedback before moving to Stage 2.
- Stage 2 (Starting mid-2023): Chrome will phase out support for third-party cookies over a three-month period finishing in late 2023.
According to Google, the revised timeline is “Subject to our engagement with the United Kingdom’s Competition and Markets Authority (CMA) and in line with the commitments we have offered.”
Reuters reported that the CMA is consulting on whether to accept Google’s commitments, and in that context it had been informed of the proposed changes to the timeline.
"If the commitments are accepted they become legally binding, promoting competition in digital markets, helping to protect the ability of online publishers to raise money through advertising and safeguarding users' privacy," a spokesperson said.
What Should Businesses Do?
We suggest businesses continue to monitor the situation closely. It’s advisable to plan for the ultimate demise of third-party cookies rather than be caught flat-footed. Google said it will soon “provide a more detailed schedule on privacysandbox.com, where it will be updated regularly to provide greater clarity and ensure that developers and publishers can plan their testing and migration schedules.” Keep close watch on the schedule and plan accordingly.
In addition, now is a good time to invest more into first-party personalization. Google is not the only company attacking web tracking. With its latest iOS update, Apple enabled its Application Tracking Transparency framework that requires apps to ask iPhone users to allow them to track their behavior. Only 4 percent of the population has opted in for tracking on their iPhones. These moves are putting more pressure on businesses to create personal experiences that capitalize on the value of their first-party data.
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