Google has announced a significant shift in its approach to third-party cookies within its Chrome browser. The company will no longer roll out a standalone prompt for users to manage their third-party cookie preferences. This decision effectively maintains the current system where users can adjust their cookie settings within Chrome's Privacy and Security Settings.

This move represents a notable change from Google's previous plans, initially announced in July 2024, to deprecate third-party cookies and introduce a new user experience centered around informed consent. Anthony Chavez, VP of Google's Privacy Sandbox, explained that this decision stems from feedback received from various stakeholders, including publishers, developers, regulators, and the advertising industry. According to Chavez, "divergent perspectives" remain regarding the potential impact of changes to third-party cookie availability.

Despite this change of course regarding the user prompt, Google affirms its commitment to the Privacy Sandbox initiative. Certain elements of the project will continue, such as the IP Protection feature for Chrome's Incognito mode, slated for release in Q3 2025. This feature aims to limit the exposure of a user's original IP address in third-party contexts when browsing in Incognito mode, thereby hindering cross-site tracking.

Industry reaction to Google's announcement has been varied. While some express frustration over the delayed timeline for eliminating third-party cookies, others see it as an opportunity to further develop alternative solutions. Experts suggest that the reliance on third-party cookies is already declining as advertisers, publishers, and platforms adapt to evolving consumer expectations, increasing regulatory scrutiny, and platform-level changes like Apple's App Tracking Transparency.

Google's decision comes amidst ongoing scrutiny from regulators, including the UK's Competition and Markets Authority (CMA) and the US Department of Justice, regarding potential anti-competitive implications of its Privacy Sandbox initiative. The company's efforts to balance user privacy with the needs of the advertising ecosystem have proven complex, leading to repeated adjustments to its timeline for phasing out third-party cookies.

Looking ahead, Google intends to collaborate with the industry to gather further feedback and refine its roadmap for the Privacy Sandbox technologies. The company plans to share an updated roadmap, outlining future investment areas, in the coming months. In the meantime, Google will focus on enhancing tracking protections in Chrome's Incognito mode and advancing other Privacy Sandbox proposals, such as the Topics API, FLEDGE, and the Attribution Reporting API, aimed at enabling privacy-preserving advertising.