Google's Monopoly Dilemma: What's Next?

Aušra Mažutavičienė
Written by
Aušra Mažutavičienė
on
August 30, 2024

Google’s New Direction on Third-Party Cookies

After years of planning to phase out third-party cookies from Chrome, Google announced in July that they’ve decided to keep them running for users who don’t disable them. This move is framed as an effort to balance user privacy with the needs of advertisers.

It was never Google’s intent to eliminate tracking altogether—they simply want to control it.

Originally, Google aimed to eliminate third-party cookies by 2022. But after delays, the deadline was pushed to 2025. Now, with this latest update, there’s no clear end date in sight.

The Challenges and Concerns

Phasing out third-party cookies has proven more difficult than expected, facing opposition not just from marketers and advertisers but also from regulators. The UK’s Competition and Markets Authority (CMA) raised 39 unique concerns about Google’s Privacy Sandbox, their proposed alternative to cookies. Beyond antitrust issues, there were also concerns that Privacy Sandbox might ironically violate privacy laws.

With Google controlling over 90% of the search market, critics worry that Privacy Sandbox could cut publishers’ ad revenues by forcing them to use Google’s system instead of third-party cookies, further increasing Google’s dominance in digital ads.

What’s Next for Third-Party Cookies?

Instead of removing third-party cookies, Google now plans to introduce a one-time prompt that allows users to set their preferences across Google’s browsing experiences: so advertisers can still run effective campaigns, while users gain more privacy control, and regulators see an effort to improve data protection.

However, Google’s decision highlights the ongoing struggle to find a viable replacement for cookies that performs as well for tracking and advertising. So far, alternatives like those from the Privacy Sandbox haven’t yet proven as effective in real-world scenarios.

What’s now?

For advertisers, this decision offers some breathing room, giving more time to adjust without the immediate disruption of losing third-party cookies. However, this isn’t a permanent solution—the industry still needs to develop new ways to track and target ads that align with evolving privacy regulations.

If you have questions or want to dive deeper into the future of digital advertising and cookie tracking, join us for a free webinar next week. Our guest, Elena Turtureanu, VP Global Legal and Privacy Compliance at Adform, will provide valuable insights. Click here for more details and to sign up.

Google’s Monopoly Under Fire

In a significant development, a U.S. court recently ruled that Google violated antitrust laws by illegally maintaining its monopoly in internet search. This ruling could lead to increased regulatory scrutiny and even potential structural changes to the company.

Discussions are already underway about how to address these violations, with proposals ranging from breaking off parts of Google, like its Chrome browser or Android operating system, to forcing Google to share its data with competitors or abandon deals that make its search engine the default option on devices like the iPhone.

The stakes are high for Google, a $2 trillion leader in online advertising. The delay in phasing out third-party cookies and recent antitrust rulings highlight Google’s dominant role. It’s about time to consider some new limits.