In a surprising reversal, Google has scrapped its plan to eliminate third-party cookies entirely in Chrome. Instead, they're focusing on user control. Chrome will introduce a new feature allowing users to decide whether or not to enable third-party cookies across their browsing experience, with the option to adjust this preference at any time. Nothing more is known about this feature, but it’s hard to see it complying with current regulations around specific consent. In order to be compliant, it would likely require an active opt-in from users, which would almost certainly lead to the number of opted-in users dropping off a cliff, as happened when Apple stopped allowing 3rd party cookies in Safari a couple of years ago.

This shift comes after years of planning to phase out cookies and developing the Privacy Sandbox initiative as a privacy-focused alternative for ad tracking. While cookies are going to stick around, Google says it will continue to invest in Privacy Sandbox APIs as a way to offer a balance between ad effectiveness and user privacy.

The ad industry seems relieved, but some concerns remain about how this will all work in practice. It's also unclear how this will impact the development of Privacy Sandbox functionalities. The availability of cookies for marketing purposes is only going to get less over time, so it is still worth for advertisers to work with their agencies on privacy compliant marketing strategies that use alternative IDs or targeting methods.

Google has decided to retain third-party cookies in its Chrome browser, reversing plans to phase them out. Instead, Google will introduce a new Chrome experience allowing users to manage their cookie preferences. This decision follows significant industry pushback and ongoing discussions with regulators.

Google will continue to develop Privacy Sandbox APIs and other privacy controls. Initial tests of Privacy Sandbox alternatives showed promising results, but the ad industry remains cautious.

Publishers, especially smaller ones, have expressed concerns about the practicality and performance of the Privacy Sandbox, with many ceasing to invest in testing due to previous delays in cookie deprecation.