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Google Backtracks on Cookie Phaseout: What It Means for Users and Advertisers


 

In a surprising announcement, Google confirmed that it will not be eliminating tracking cookies in Chrome, impacting the browsing experience of 3 billion users. The decision came as a shock as the company struggled to find a balance between regulatory demands and its own business interests.

Google’s New Approach

On July 22, Google proposed a new model that allows users to choose between tracking cookies, Google’s Topics API, and a semi-private browsing mode. This consent-driven approach aims to provide users with more control over their online privacy. However, the specifics of this model are still under discussion with regulators. The U.K.’s Competition and Markets Authority (CMA) expressed caution, stating that the implications for consumers and market outcomes need thorough consideration.

Privacy Concerns and Industry Reaction

Privacy advocates are concerned that most users will not change their default settings, leaving them vulnerable to tracking. The Electronic Frontier Foundation (EFF) criticised Google’s Privacy Sandbox initiative, which was intended to replace tracking cookies but has faced numerous setbacks. The EFF argues that Google’s latest move prioritises profits over user privacy, contrasting sharply with Apple’s approach. Apple’s Safari browser blocks third-party cookies by default, and its recent ad campaign highlighted the privacy vulnerabilities of Chrome users.

Regulatory and Industry Responses

The CMA and the U.K.’s Information Commissioner expressed disappointment with Google’s decision, emphasising that blocking third-party cookies would have been a positive step for consumer privacy. Meanwhile, the Network Advertising Initiative (NAI) welcomed Google’s decision, suggesting that maintaining third-party cookie support is essential for competition in digital advertising.

The digital advertising industry may face unintended consequences from Google’s shift to a consent-driven privacy model. This approach mirrors Apple’s App Tracking Transparency, which requires user consent for tracking across apps. Although Google’s new model aims to empower users, it could lead to an imbalance in data access, benefiting large platforms like Google and Apple.

Apple vs. Google: A Continuing Saga

Apple’s influence is evident throughout this development. The timing of Apple’s privacy campaign, launched just days before Google’s announcement, underscores the competitive dynamics between the two tech giants. Apple’s App Tracking Transparency has already disrupted Meta’s business model, and Google’s similar approach may further reshape the infrastructure of digital advertising.

Google’s Privacy Sandbox has faced criticism for potentially enabling digital fingerprinting, a concern Apple has raised. Despite Google’s defense of its Topics API, doubts about the effectiveness of its privacy measures persist. As the debate continues, the primary issue remains Google’s dual role as both a guardian of user privacy and a major beneficiary of data monetisation.

Google’s decision to retain tracking cookies while exploring a consent-driven model highlights the complex interplay between user privacy, regulatory pressures, and industry interests. The outcome of ongoing discussions with regulators will be crucial in determining the future of web privacy and digital advertising.



Call of Duty Bid: Microsoft Makes New Bid to Acquire Call of Duty Giant


In the newest turn of events, Microsoft has made an offer to acquire Activision Blizzard, the company behind the Call of Duty video game. Its original bid of $69bn is however blocked by UK regulators.

According to Brad Smith, Microsoft’s president, the offer was “subsequently different” and should be approved.

While the UK Competition and Markets Authority (CMA) is set to analyze the deal, they noted that “this is not a green light.”

If accepted, the offer would put an end to a turbulent 18 months for Microsoft.

Regulators Express Their Concerns

Since the initial announcement of the bid in January last year, the proposed merger has raised concerns of several regulators around the world, claiming that doing so could restrain the choices of gamers. 

In regards to this, CMA will make certain decisions on Microsoft’s revised bid by October 18, without which no further conclusions will be made. 

In counter to the allegations, Microsoft confirms this merger will in fact boost demands for the Xbox console and its gaming subscription business. 

In the revised bid, Microsoft has agreed to the proposal seeking rights to stream Activision games from the cloud to Ubisoft, a video games publisher.

"Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service - Xbox Cloud Gaming - or to exclusively control the licensing terms of Activision Blizzard games for rival services," Mr. Smith stated.

It claimed that 40 nations, including the European Union and China, had approved its initial bid for Activision as of this point. The US Federal Trade Commission is still attempting to obstruct the deal in the US, but the courts have repeatedly overruled its arguments.

However, CMA has blocked the tie-up in April, saying this would harm innovation and choice for gamers in the rapidly evolving cloud gaming business. To this, Mr. Smith said it was “bad for Britain” and marked Microsoft’s “darkest day” in the four decades of its operating in the country. Also, this was a shock to the UK government, which aims for the country to become a ‘tech powerhouse.’

Activision boss Bobby Kotick said the deal had been "a longer journey than expected" but that "nothing substantially changes" under the new bid.

"We will continue to work closely with Microsoft and the CMA throughout the remaining review process, and we are committed to help Microsoft clear any final hurdles as quickly as possible," he said.

Commenting on this issue, Microsoft’s rival Sony too has objected to the deal, claiming that following the merger, Microsoft will stop some major games that are available in its own PlayStation business. 

For the merger to succeed, the revised bid is required to secure the approval of regulators in the UK, the U.S. and the EU. In case this bid does go ahead, this will also be a winning situation for the CMA, which could then earn an opportunity to approve the bid. 

In regards to this, CMA’s chief executive Sarah Cardell says that Microsoft’s new offer was "substantially different from what was put on the table previously[…] We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments."

"Our goal has not changed - any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice," she said.  

Web Development Revolution: Chrome's Cookie-Free Tools

 


It has become increasingly common for browsers to use third-party cookies as part of their browsing process, which makes it possible for advertisers and bad actors to spy on large chunks of your browsing history to provide more relevant ads. There is no doubt that third-party cookies contribute to the functioning of websites and the experience of Internet users, but most experts agree that we need alternatives that are easier to control, regulate, and understand. 

Google announced in a blog post that it will enable the Privacy Sandbox APIs over the next few days to protect user privacy. There would be an initial rollout of these APIs for a small percentage of users with Chrome 115 installed. When the APIs become available, they would ramp up gradually over time. 

To get rid of browser cookies, Google developed a Privacy Sandbox in 2019 to rid itself of the problem. This is counter to Google's operation. The privacy feature on the site is not intended to completely stop advertisers from targeting audiences with their ads. Instead, it makes it harder for advertisers to access users' personal information. Google announced the Privacy Sandbox program in May 2023. It stated that the process would begin by July 2023 and be available to everyone. Finally, the day has come when that dream will become a reality. 

The Chrome Developers blog for Chrome 115 has more details about the upcoming "relevance and measurement APIs" introduced in Chrome 115. There are several APIs, including Topics APIs that categorize a user’s interests based on how they utilize the Internet. These APIs do not share this information with advertisers directly. There are also attribution reporting APIs, which can determine if ad clicks or views result in conversions. Besides the Protected Audience API (previously FLEDGE), which allows relevant advertising to be displayed to users based on their previous interactions with advertisers.

It is important to point out that these updates come shortly after the U.K.'s top privacy watchdog, Competition Markets & Authority, which is responsible for overseeing the development of Sandbox, released a set of guidelines for testing Sandbox just a few weeks ago. It has been proposed that Google will have to submit itself to more oversight by the CMA by 2021. This is to address concerns that removing third-party cookies may pose a new competitive challenge for companies that use personalized ads. As per the guidelines, reporting test results is particularly critical for ad-tech companies as it helps the CMA assess whether the Privacy Sandbox has addressed our competition concerns, which will help determine whether the Privacy Sandbox is effective. 

The matter of privacy and competition remains one of the biggest concerns facing Google and other digital advertising giants in Europe and the U.S. about the way they conduct their online advertising practices. A new lawsuit has been filed by the European Commission against Google, asserting that its ad-tech business violates the antitrust laws of the EU and suggesting potential steps to break up its massive ad-tech operation. It was noted by Norwegian legislators, as well as French regulatory agencies, that Meta was placed under state control due to its behavioral advertising. In contrast, Criteo was fined for using personal data for advertising. Various courts, lawmakers, and regulatory agencies in various countries have pressured other companies to use data for advertising purposes. 

A privacy sandbox, in essence, is a document that claims third-party cookies are a privacy disaster that needs to be fixed with an open, industry-wide standard that aims to accomplish this goal. A user tracking tool integrates into your browser so that it runs securely locally, which then means that data that is relevant and anonymous is only sent to websites and advertisers when it is relevant and relevant, such as what type of products or topics people may be interested in when visiting their website. By doing this, advertisers and publishers will not have to track users personally so they will no longer have to track their audience. 

The EFF, one of the privacy watchdogs that monitors privacy issues, has criticized the Privacy Sandbox for some of its original ideas. These include FLoC (Federated Learning of Cohorts), which was among its ideas. In response to feedback, Google pivoted and created a different approach, such as Protected Audience. This has not received the same criticism as the now-launched Protected Audience, as it does not follow the same approach. The Privacy Sandbox continues to be a subject of controversy among competitors such as Brave, partly because of concerns surrounding antitrust laws. 

In the beginning, the APIs will be turned on for a limited number of Chrome dev browser instances that are part of Google Chrome development. With the rollout progressing, Google will gradually increase the number of devices to monitor potential problems as the rollout progresses. The following are some of the APIs that were enabled for Chrome developers during this rollout - a few groups of developers will only encounter a subset of the newly available APIs activated so it is easier to detect and isolate issues associated with specific APIs during this rollout. 

There is a possibility that this process will begin next week, starting on the 24th of July, according to Google. The APIs will be released for about 35 percent of the browsers during the week so that the developers can test the APIs. According to the company, they plan to increase this to 60 percent by the end of August. During August, a Chrome 116 general availability date is expected to be announced. However, it is unclear when APIs will work for 99 percent of Chrome 115 browsers. 

At this stage of the testing program, Google says most of the small groups tested with limited access should have all the relevance and measurement APIs enabled. 'Only small, isolated groups are going to be maintained by the company, without each API being enabled for every small group. 

A couple of issues with onboarding and regulatory investigations have caused Google to delay the project, although it was originally projected to phase out third-party cookies in late 2023. The Competition and Markets Authority (CMA), which previously voiced concerns that the search giant's own advertising business would unfairly gain from the updated approach, published guidelines in June for third parties to follow when testing Google's Privacy Sandbox tools. 

It is well known that by passing the CMA's regulatory hurdles back in 2022, Google's plans for refusing or removing third-party cookies will have been approved (provided that Google sticks to the commitments it made to get approval), and the company said it "will continue to work closely with the CMA" before taking any further action to do so.