Alphabet’s Google recently announced that it will launch a new feature on its Chrome browser, aiming to eventually ban the use of third-party cookies by advertisers for tracking consumers. The company plans to roll out the feature, called Tracking Protection, to 1 percent of global Chrome users on January 4th. This feature will restrict cross-site tracking by default, providing users with increased privacy.
Google’s long-term plan is to phase out the use of third-party cookies entirely by the second half of 2024. However, the timeline is contingent upon addressing antitrust concerns raised by the UK’s Competition and Markets Authority (CMA). The CMA has been investigating Google’s proposal to reduce support for certain cookies in Chrome, expressing worries about its potential impact on competition in digital advertising. The authority is also closely monitoring Google’s advertising sector, which is its primary revenue source.
Cookies are special files that enable websites and advertisers to identify individual internet users and monitor their browsing behavior. Margrethe Vestager, the European Union’s antitrust chief, previously stated that the agency’s investigations into Google’s introduction of tools to block third-party cookies, part of its Privacy Sandbox initiative, would continue.
Advertisers have expressed concern that the elimination of cookies in the world’s most popular browser will limit their ability to collect data for personalized ads, potentially making them reliant on Google’s user databases. BofA Global Research noted that this shift could give more power to media agencies, particularly those capable of providing exclusive insights on a large scale to advertisers.
In conclusion, Google’s plan to test a new feature in its Chrome browser that limits the use of browser tracking cookies marks a significant step toward enhancing user privacy. However, the company faces antitrust concerns and ongoing scrutiny from regulatory authorities. Advertisers also raise concerns about losing access to valuable data for personalized advertising. As the landscape of online tracking continues to evolve, Google’s actions will undoubtedly impact the future of digital advertising.
