Google delays plan to phase out third-party cookies by two years

Google has postponed a plan to end support for third-party cookies in its Chrome browser for nearly two years, after pressure mounted over an idea that hits one of the foundations of today’s online advertising industry.

The search engine said it was being deferred to allow more time for discussion with regulators and companies involved in digital advertising, and “to avoid jeopardizing the business models of many web publishers.”

The respite was greeted with relief in the world of digital advertising, which has faced uncertainty as one of its main ways to target online messages approaches the end. Shares in Trade Desk, an American company she was trying to lobbyكسب Alternative method From targeted ads, it jumped 17 percent in the news, while French ad technology company Criteo rose 11 percent. The delay will give the online advertising industry more time to improve cookie alternatives, said Youssef Skaly, an analyst at Truest.

Third-party cookies, which are pieces of code implanted in a user’s browser to record the websites they visit and help advertisers target personalized ads, have been under fire for years. Apple’s Safari browser and Mozilla’s Firefox already block them by default.

However, Chrome accounts for about two-thirds of the browser market, which makes its impact even more significant. Also, Google’s dominant position in many other parts of digital advertising has raised concerns that it may use the cookie end – and the alternative system it plans to use in Chrome – to gain an advantage over competitors.

Two weeks ago, the UK Competition and Markets Authority said it is Worry that Google is “determined to move forward with the changes[to cookies]. . . In ways that benefit its business and reduce competition from its competitors.” But she added that additional commitments by Google would reduce the risk, including the company’s promise not to make any changes without giving the regulator 60 days to review them.

This privilege can lead to conflict among regulators over who takes the lead in overseeing Google’s advertising systems. The European Commission announced its antitrust investigation into Google’s ad technology business this week, including a proposed termination of cookies.

Google has proposed replacing cookies with a new, more private way of tracking users’ online interests, known as Floc. Personal browsing data will be kept and analyzed within the user’s browser, rather than sent to other companies. Users will then be grouped into groups based on their interests and the rest of the online advertising industry will be able to use this collected data to target their messages.

Some critics questioned whether Google would be in An unfair advantage Because he will have complete control over how the prototype groups are designed. Also, if the new system makes targeted advertising less efficient, Google may benefit indirectly since its direct relationship with users still gives it access to a vast amount of first-party data that competitors cannot match. The company said its own tests showed that advertisers can expect Floc to be 95 percent as effective as cookies.

The company has also faced opposition from privacy experts who question whether private data can still be leaked. According to an analysis by the open source group Mozilla, the new Floc system “could create significant risks if deployed widely in its current form”.

Google said it expects to complete its own testing of the cookie replacement late next year, after which advertisers and publishers will have nine months to migrate their own systems to the new technology. It added that the cookies would then be phased out over a period of three months by late 2023. The company had originally set a deadline for eliminating cookies early next year.

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