Image Courtesy: The Verge
Google’s Chrome web browser will not entirely disable monitoring cookies until late 2023, according to Alphabet Inc, delaying by nearly two years a step that has sparked antitrust worries among competitors and authorities.
Google had planned to prohibit ad-personalization businesses from acquiring users’ browsing preferences via cookies beginning in January 2022. Rivals, though, accused the world’s largest online ad seller by revenue of exploiting enhanced privacy as a ruse to acquire a larger market share.
In early Thursday afternoon trade, Alphabet shares were up 0.5 percent. However, stocks of firms that have been working hard to decrease their reliance on cookies have risen. Trade Desk Inc increased by 18%, PubMatic Inc increased by 12%, and Criteo SA increased by 10%.
After an inquiry agreed upon with Google last month, Britain’s Competition and Markets Authority (CMA) will supervise the Chrome modifications. Google stated that their new schedule was in accordance with the agreement.
The CMA stated that it was consulting on whether to accept Google’s pledges and that it had been informed of the potential time frame adjustments in that regard. According to Reuters, the US Department of Justice has also looked into Chrome and cookies. The European Union’s competition commission announced on Wednesday that it, too, was conducting an investigation.
Google is collaborating with the advertising industry on technology that might replace cookies’ monitoring capabilities while improving internet privacy. It now plans to select new approaches by late next year, do final testing, and then progressively phase out tracking cookies beginning in mid-2023 provided the CMA approves.
Alternatives’ efficacy is called into doubt by critics. They go on to say that Google will only profit from the removal of third-party cookies since it will be able to continue gathering similar data through YouTube, search, and its other popular services. Google may be able to attract more advertisers if it has a data edge. Similar changes have been made to Apple Inc’s Safari browser, but Chrome is more widely used in the United States and Europe.