Why is Google giving up on the end of third-party cookies in 2025?

A turning point in digital advertising

In June 2021, Google had announced its intention to remove third-party cookies from its Chrome browser by 2023. However, after several postponements and heated debates, the tech giant has finally decided to maintain these famous cookies beyond 2025. Why this about-turn, and what are the implications for the digital industry and users?

A changed context

Google had initially justified the suppression of third-party cookies by the need to strengthen the protection of user privacy. Third-party cookies are in fact often used to track users’ browsing on different websites for advertising purposes, raising ethical and legal questions. However, this decision has provoked strong reactions from players in the advertising industry, who fear a significant loss of revenue.

With its recent announcement, Google is now proposing a new approach, dubbed “Privacy Sandbox”. This initiative aims to offer users a more secure browsing experience while maintaining the ability for advertisers to deliver targeted ads.

User choice at the heart of new strategy

In its press release, Google emphasizes the desire to give users more control. “We offer an updated approach that reinforces user choice. Instead of deleting third-party cookies, we’re introducing a new experience in Chrome that would allow users to make an informed choice that would apply to their entire web browsing experience, and they’d be able to adjust that choice at any time,” explains Anthony Chavez, vice president of Privacy Sandbox at Google.

This new approach involves allowing users to choose for themselves whether to accept or block third-party cookies, giving them greater control over their personal data. This is part of a wider trend to give users more transparency and power over the management of their data.

Market and industry reactions

Google’s announcement immediately had an impact on financial markets. For example, shares in Criteo, a company specializing in retargeting advertising, jumped more than 10% at the close on Wall Street. This positive reaction reflects the anticipation that Google’s new approach could limit the financial losses that advertising companies initially feared.

However, questions remain about the effectiveness and enforcement of the new policy. “The Privacy Sandbox does not achieve Google’s stated objective of limiting publishers’ revenue loss to a maximum of 5%,” Todd Parsons, Chief Product Officer at Criteo, had said when the results of the adtech’s test were published.

Regulatory pressure and criticism

Google’s decision was not only influenced by industry and financial market reactions, but also by regulators, including the UK’s Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO). These bodies had expressed concerns about the potential impact on competition and confidentiality.

Anthony Chavez said Google would continue to discuss this new path with regulators and the industry as the updated approach was implemented.

The Privacy Sandbox and alternatives

For those who have already started investing in alternatives to third-party cookies, Google has reassured that the Privacy Sandbox APIs will remain available. What’s more, additional privacy measures, such as the recently announced IP protection, will be integrated.

“We developed Privacy Sandbox with the goal of finding innovative solutions that significantly improve online privacy while preserving an ad-funded Internet that supports a vibrant ecosystem of publishers,” Anthony Chavez wrote in a blog post.

A transition to a more transparent web

Google’s decision marks an important step in the evolution of digital advertising. By giving users more control over their personal data while maintaining a viable advertising ecosystem, Google is attempting to strike a balance between the interests of users, regulators and advertising companies.

However, it remains to be seen how this new approach will be implemented, and whether it will meet the expectations of all concerned. In an environment where data protection is increasingly crucial, this transition could well shape the future of online advertising.

Ultimately, Google has chosen a path that favors choice and transparency, while avoiding a sharp break with current industry practices. A move that seems necessary in a world where consumer expectations and data protection regulations are constantly evolving.