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This article is more than 2 month old.

Why is Google delaying the deprecation of cookies?

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The third-party cookie is crumbling slowly. It does not mean that the industry will have to wait for the next 24 months and watch Google launch the new Privacy Sandbox through another blog.

Why is Google delaying the deprecation of cookies?
Google, through their blogpost shared their updated timeline for their Privacy Sandbox milestones, including a fresh set of dates on phasing out the third party cookies. Launched by Chrome in 2019, the Privacy Sandbox is supposed to be a collaborative, open-source effort to develop a new set of standards in the form of web standards to define an Open Web Platform that replaces legacy and data-intensive mechanisms with safer solutions that protect the consumers privacy.
It is important to note that the Privacy Sandbox initiative covers preventing covert tracking, verify consumer’s authenticity, show relevant content and advertising and more importantly measure digital ads in an anonymised way. A very tall order.
Despite offering more than 30 proposals along with an active engagement with all the industry bodies across brands, platforms and publishers, the reality is that the Privacy Sandbox failed to reach an admissible consensus from the industry for total deployment. And this falls across two broad areas.
1) On 23rd March, Google’s current FLoC tests were declared to be non-compliant as per the GDPR standards. Questions were raised about whether a browser assigning users into cohorts counts as a use of personal data, without consent, maybe a privacy violation. Testing of FLoCs were stopped in across EU nations and Google could run their tests only in the USA and in APAC. Till now there is no plans when the testing will begin in Europe.
2) On the 8th of July, United Kingdom’s Competition and Markets Authority (CMA) announced its formal investigation of the Privacy Sandbox in January, we welcomed the opportunity to engage with a regulator with the mandate to promote competition for the benefit of consumers. These commitments include zero self-preferencing and no data advantage for Google advertising products apart from involving the industry for a much deeper consultation and collaboration. This would not have concluded before the end of 2021.
Privacy Sandbox needs more work to gain industry acceptance and adoption. It requires more discussion; more testing and be ready for scaled-up adoption. This is also now linked to satisfactory clearance from the CMA, UK before anything can be rolled out.
What does this mean for the industry?
1) This does not mean that the industry will have to wait for the next 24 months and watch Google launch the new Privacy Sandbox through another blog. This is now an active industry and regulatory engagement starting now for the next 2 years.
2) Once the testing is complete, publishers and the advertising industry will get nine months to migrate their services. Google will then, over a period of three months phase out the support of third-party cookies in late 2023.
Industry must take this opportunity, to prepare itself well. The objectives of the Privacy Sandbox cannot be faulted. It is just that the path to get there requires more collaboration and consultation. Should Google prefer to avoid the same mistakes once again and accelerate the rollout, in my view, they have two steps to take.
1) Browser-based cohorts is a non-starter. We need to move to a universally codified cohort for acceptance and adoption. Industry needs to spend a lot more time on this to standardise this.
2)ANA has recently launched an Advertiser to Audience programmatic transparency audit. Perhaps a deeper discussion is required on how there can be zero self-preferencing and no unfair advantage for Google’s advertising products.
And now we have good 24 months to do this properly. In partnership with Google.
—Gowthaman Ragothaman is Founder and CEO of Singapore-headquartered blockchain solutions provider Aqilliz. He is former global client lead at WPP and global blockchain solutions lead at GroupM.