At the end of July, Google altered its stance on blocking third-party cookies in the Chrome browser. While this decision benefits Google’s business model and many companies within the marketing ecosystem, it has once again raised concerns about user privacy. Third-party cookies are a technology that allows tracking of user activities on the Internet, primarily used for advertising and analytics purposes. Due to these reasons, Safari and Firefox browsers blocked them in 2020. Google initially planned to phase out this technology in 2020, but it has now retracted these plans.

How do third-party cookies affect online tracking?

Cookies are small packets of information stored in a user’s browser by visited websites. They enable functionalities such as remembering user preferences or shopping cart contents. Third-party cookies are mainly used for tracking users across the Internet. They are set by websites other than the ones the user is directly visiting. When a user visits a site, third-party code can set a cookie with a unique identifier. When the user visits another site utilizing the same third-party resources, the third-party company receives the unique identifier and can track the user’s activity across the web.

How does online tracking impact users?

Third-party cookies allow companies to create detailed user profiles, which can be used for ad targeting or sold to other companies. Such data may reveal sensitive information, such as financial status or health conditions. Data brokers collect and sell this information without users’ knowledge or consent. Advertisers and other companies may purchase these data, sometimes using them in ways that are not in the best interest of consumers.

Implications for the Digital Industry

Google’s change of plans stems from advertisers’ and regulators’ concerns that blocking third-party cookies in Chrome would harm competition in the digital advertising market. Despite many voices of opposition, several companies in the digital media industry have breathed a sigh of relief, while others who invested in next-generation technology now realize that a revolution is not imminent.