Google abandons the plan to eliminate ad cookies and shifts to a user choice model

According to the financial news app Zhitong Finance, Alphabet (GOOGL.US)'s Google recently announced that it will abandon its plan to gradually phase out third-party cookies. After facing a series of setbacks, Google has decided to retain this widely used tracking technology called "Cookies". Several digital advertising companies and regulatory agencies have opposed this plan and the alternative technologies proposed by Google.

For years, Google has been committed to implementing the "Privacy Sandbox" plan, aiming to replace cookies with other tools to serve advertisers. However, Google's Vice President Anthony Chavez stated in a blog post on Monday that the company will now take a different approach by introducing a new user experience in the Chrome browser, allowing users to make informed choices for their entire web browsing experience and adjust these choices at any time.

This move has raised concerns from regulatory agencies. The UK Competition and Markets Authority (CMA), responsible for regulating the tech industry, stated that it will collect opinions on Google's new initiative by August 12. The agency had previously expressed concerns about Google's plan to phase out third-party cookies and feared that these changes might hinder competition in the digital advertising market.

The advertising industry organization Open Web Movement, which had previously complained to the CMA to stop the introduction of the Privacy Sandbox technology, issued a statement saying that this change is a clear admission by Google that its plan to close the open web has failed.

James Rosewell, co-founder of the Open Web Movement, said, "We have always advocated for the Privacy Sandbox to compete on its own merits. If advertisers like its approach and consumers value the so-called privacy benefits, then it will be widely adopted. What is unacceptable is to force such a solution onto the market without any other choice."

Some privacy advocates have expressed disappointment in Google's decision. They believe that regulatory agencies, consumers, and even brands have recognized the privacy issues associated with cookies and have been working to find more privacy-friendly solutions.

Adam Schenkel, Executive Vice President of GumGum, an advertising technology company focused on delivering ads without personal data, stated, "Google's decision is seen as short-sighted, especially in terms of privacy."

Google's shift will undoubtedly have a profound impact on the digital advertising market. While Google has stated that it will continue to provide tools from the "Privacy Sandbox" plan to developers, advertisers and publishers may need to reconsider their tracking and measurement strategies. At the same time, users will face more choices and responsibilities to ensure that their privacy is fully protected