Google has officially announced that it will not remove third-party cookies from its Chrome browser, a decision that will likely come as a huge relief to large advertisers. Many of these advertisers, especially those that have expanded through acquisitions, were concerned about the challenges of integrating different sets of first-party data to effectively target ads.

On July 22 Google announced that it will keep third-party cookies in its Chrome browser, reversing its previous plan to phase out these tiny data packets used for tracking internet users. This decision, comes after years of pledging to eliminate cookies.

The change in strategy follows concerns from advertisers, Google's primary revenue source, who argued that the removal of cookies would hinder their ability to gather information for personalized ads, making them overly reliant on Google's own user databases. The UK's Competition and Markets Authority (CMA) also scrutinized Google's plan, worrying that it could harm competition in the digital advertising sector.

Anthony Chavez, vice president of the Google-backed Privacy Sandbox initiative, explained in a blog post that instead of eliminating third-party cookies, Google will introduce a new experience in Chrome. This will allow users to make informed choices about their web browsing privacy settings, which they can adjust at any time.

Since 2019, Google has been working on the Privacy Sandbox initiative, which aims to enhance online privacy while supporting digital businesses. One of its key goals was to phase out third-party cookies, which help websites and advertisers identify and track individual web surfers, though they can also be used for unwanted surveillance.

In the European Union, cookie usage is regulated by the General Data Protection Regulation (GDPR), which requires publishers to obtain explicit consent from users to store cookies. Major browsers also allow users to delete cookies at will.

Chavez mentioned that Google is collaborating with regulators like the UK's CMA and Information Commissioner's Office, as well as publishers and privacy groups, to develop the new approach. Google will continue to invest in the Privacy Sandbox program.

The announcement received mixed reactions. Evelyn Mitchell-Wolf, an analyst at eMarketer, noted that "advertising stakeholders will no longer have to prepare to quit third-party cookies cold turkey." On the other hand, Lena Cohen, a staff technologist at the Electronic Frontier Foundation, criticized the decision, stating that cookies can lead to consumer harm, such as predatory ads targeting vulnerable groups. Cohen added that "Google's decision to continue allowing third-party cookies, despite other major browsers blocking them for years, is a direct consequence of their advertising-driven business model."

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