Google has made another major shift in its approach to third-party cookies, announcing that it will continue to provide this tracking technology in Chrome rather than developing a separate mechanism around its use as previously planned. For marketers, this news is a mixed blessing: on one hand, it may alleviate the problem of insufficient reach in a fragmented media environment; on the other, it also prompts internal acceleration of customer data protection initiatives.

This latest move appears to put an end to the cookie deprecation process, while also potentially laying the groundwork for Google to divest its Chrome business under regulatory pressure. According to the company'sofficial blog, the shift involves feedback from publishers, developers, regulators, and the advertising industry regarding its Privacy Sandbox alternative launched in 2019. When Google executives were asked about this at the IAB Public Policy and Law Summit on Tuesday (April 22), they further elaborated on the considerations behind the decision.

"Looking at the evolution the entire industry has undergone and the changes in the regulatory environment, from the time we first announced Privacy Sandbox to now, all aspects have been continuously evolving and developing," said Ghita Harris-Newton, Senior Director of Government Affairs and Public Policy at Google. "We continue to work with the industry to think about this evolution and respond to feedback from the industry."

Last July, the tech giant stated it would explore "new paths for online privacy" rather than deprecating third-party cookies in Chrome, thereby pausing the deprecation plan initiated in2020. Despite the industry investing countless resources in developing solutions for a cookie-less future, Google has now decided to keep cookies in Chrome.

A few days before this announcement, Googlelost a second antitrust lawsuit, with a federal judge ruling that the company holds an illegal monopoly in key areas of online advertising technology. Last August, Google was already found to have anillegal monopolyin search, a case that could potentially force it to sell its popular Chrome browser. Regulatory pressure may be one factor prompting Google to reconsider its third-party cookie plans once again.

"This news is not surprising. They likely don't want to do anything that could harm their advertising business in the event they are ultimately forced to sell Chrome," said Amelia Waddington, Global Chief Product Officer at search intelligence company Captify, in an email comment. "Sandbox works because it is based on Google owning Chrome and having full control over the supply chain. If they lose Chrome, they will need to rely on cookies for targeting like everyone else."

Industry Response

Although Google will maintain its current approach to providing third-party cookies, it has not completely abandoned privacy protection solutions. According to the blog post, the company will continue to enhance tracking protection in Chrome's Incognito mode and plans to launch new IP protection features in the third quarter of 2025. Additionally, Google will collect industry feedback on the role of Privacy Sandbox and share an "updated roadmap" and investment plans in the coming months.

As with previous developments in the long and winding journey of cookie deprecation, opinions vary on how Google's latest move will impact the advertising industry and how marketers should respond. IAB CEO David Cohen and IAB Tech Lab CEO Anthony Katsur praised the move as a victory for interoperability, or a confirmation of the direction the advertising industry has already taken; while others criticized it for undermining the privacy progress the industry has made over the years.

"In an era where consumers are more aware than ever of how they are tracked online, doubling down on cookies sends the wrong message. The internet's problem is not targeting, but trust," said Adam Schenkel, Executive Vice President of Global Platform Strategy and Operations at contextual targeting company GumGum, in an email comment. "Brands should view this as a wake-up call to immediately diversify their advertising strategies before audience trust erodes further."

Other executives pointed out that marketers have already begun moving away from reliance on third-party cookies, given the industry's focus on first-party data and cookie-less channels such as connected TV and mobile.

"While we expect marketers to rely on third-party cookies for reach indefinitely, we also expect greater emphasis on tools that can combine third-party cookies with updated destinations and experiences, providing interoperability and a unified view," said Travis Clinger, Chief Connectivity and Ecosystem Officer at LiveRamp, in an email comment.

More Scrutiny

Although the question of the future of third-party cookies in Chrome has been settled for now, Google's troubles in antitrust battles are far from over. Its strategic shift and regulatory pressure may prompt the advertising industry to continue pushing the digital advertising giant for greater transparency and competition in other areas.

"The second major legal ruling against Google's monopolistic behavior last week is expected to 'reshape' digital advertising. This also gives marketers an opportunity to let Google know that ending the lack of transparency in its video advertising practices should be the next target," said Sean Cunningham, President and CEO of VAB, in an email comment.

"While marketers know that the depth and breadth of Google's lack of transparency in video advertising does not (yet) constitute a crime, now is the time to say 'it should be considered a crime' and demand an end to the industry's double standard on transparency—a dynamic that certainly also needs to be 'reshaped,'" the executive added.

More than five years have passed since Google first announced its plan to deprecate third-party cookies, and the reshaping of the digital advertising landscape has long been underway. The advertising industry has been actively adopting clean rooms for data collaboration, developing IDs for better targeting, and optimizing marketing mix models. For forward-looking players involved in these efforts, the latest news is a "non-issue," said Mari Docter, Senior Vice President of Data Strategy and Innovation at independent media buying and planning agency Novus.

"The industry is moving toward more privacy-compliant data usage practices, and as state-level privacy laws roll out in a patchwork fashion, cookies will gradually become a meaningless technology," Docter said in an email comment. "We are not going back to the past."