Google throws ‘cookies’ to marketers after DOJ’s ad tech ruling

Just days after a U.S. federal court ruled Google a monopolist in digital advertising — the second time within the last year — the tech giant is walking back a key privacy update in Chrome. Instead of rolling out a new prompt for third-party cookies, Google says users will continue managing cookie settings as they always have. The decision sparked a mix of relief, frustration and no small amount of skepticism across the industry.

In a blog post on Tuesday, Anthony Chavez, VP of Privacy Sandbox — Google’s initial replacement for cookies — cited AI advancements, new privacy technology and the evolving “regulatory landscape” around the world as reasons for the decision. For Google, it’s an about-face since its announcement last July when it pledged to give users a clearer choice regarding their cookie usage in Chrome.

Marketers would be forgiven for feeling déjà vu. The timing is raising questions among industry executives, who believe it’s a strategic move, either to throw marketers a figurative “cookie” in light of the DOJ decision or as a tactic in their ongoing saga with regulators.

The timing is interesting

“It’s funny how so many executives were busy spewing venom at Google a few days ago and today are supremely grateful for some level of business continuity. It’s clear there was contingency planning happening in the background and the industry is just waking up to it,” says Matt Barash, chief commercial officer at social agency Nova. “It’s a Google world and we all play in it.”

David Kohl, co-founder at performance marketing technology company Symitri, said this could be a tactical move for Google, positioning privacy concerns as a counterweight to antitrust scrutiny. “The timing of this announcement just after Thursday’s antitrust verdict is just too convenient to be anything but gamesmanship,” he says. “Google is playing privacy regulators against antitrust regulators. I think they give up the ad tech business but keep Chrome, and that in their negotiations to do so, they agree to a more privacy-friendly stance.”

Others question whether this is part of a broader shift — one where Google gradually retreats from parts of the ad tech ecosystem entirely.

Nathan Thomas, founder of Thomas Media Consulting, believes it’s noteworthy that Google is embracing cookies after months of silence on Privacy Sandbox, and it signifies an about-face to Google’s open internet push. “This bolsters the argument for [Google] exiting the general open web ad tech sell-side business and long-term focus on their [owned] properties.”

In the blog post, Chavez points to several reasons behind Google’s decision to keep cookies intact. Noticeably absent was any mention of the DOJ’s ruling.

Privacy Sandbox, which has also witnessed its fair share of criticism, isn’t completely going away. “We understand that the Privacy Sandbox APIs may have a different role to play in supporting the ecosystem,” writes Chavez. “We’ll engage with the industry to gather feedback and share an updated roadmap for these technologies, including our future areas of investment, in the coming months.”

The opportunity cost

For many marketers, the decision for Google to keep cookies (for the unforeseeable future) brings relief. Though many brands and publishers continue to embrace new identity solutions, there are those who feel they need more time before they eliminate cookies from their identity strategy, even with the growing need to find new identity solutions.

For those who have spent years preparing for a cookieless landscape, this reversal is met with frustration. “Is there a Google form to submit time sheets? I’d like to bill for all the hours spent on Sandbox, please,” Thomas says.

Still, this is no laughing matter. “Endless millions of hours and dollars have been wasted by companies in preparation for this, and many millions more have been lost in opportunity cost and thwarted investment. That is unforgivable and should add further urgency to the moves by the DOJ, E.U. and U.K. to clip Goggle’s wings permanently with antitrust actions,” says James Rosewell, co-founder of Movement for an Open Web, in a statement.

“No company should be allowed to hold an industry to ransom in this way.”

Stay the course

And with cookies sticking around for now, marketers are urging others to not drop their plans to build cookieless identity solutions.

Chris Feo, chief business officer at Experian, warns against complacency: “Over the last four to five years, the advertising industry has made significant investment in evolving beyond cookie-first solutions. Abandoning our collective progress towards achieving a more holistic view of a consumer, absent of cookies, would be a mistake.”

Andrew Casale, president and CEO at Index Exchange, echoes this sentiment. “Google’s Chrome decision doesn’t alter the path ahead — we’re already in a signal-less world across Safari, Firefox and a large part of iOS,” he says. “Regulation and privacy expectations are rising. We must continue testing and adopting scalable, privacy-first solutions that give publishers and marketers lasting control and flexibility.” 

The Current is owned and operated by The Trade Desk, Inc. UID2 was developed by The Trade Desk.