Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google reversed its long-standing plan to eliminate cookies in its Chrome browser due to industry and regulatory pushback.
Advertisers and publishers use cookies and small text snippets to identify users and target ads.
This decision follows objections from digital advertising companies and regulators to Google's proposed alternative technologies.
Ad-tech players protested, accusing Google of attempting to strengthen its monopoly in the space and making it more difficult for advertisers to track their ads' performance.
Instead of eliminating cookies, Google will now prompt Chrome users to decide whether to enable or disable cookies.
This move will keep the internet free and support advertisers relying on cookies to track user data. Websites will continue to display consent boxes for cookies, maintaining the current user experience, CNBC reports.
Google aims to address industry concerns and maintain advertising effectiveness by keeping cookies. However, regulators like the U.K.'s Information Commissioner's Office expressed disappointment, emphasizing the need for better online privacy protections.
Google's decision means that advertisers can continue using valuable data for targeted ads while users have more control over their cookie preferences. Despite this change, the push for greater online privacy remains strong.
Nearly 40.9% of websites worldwide use cookies to collect user data, CNBC cites W3Techs web technology research firm.
Google's reversal had a varied impact on ad tech stocks Tuesday. The Trade Desk, Inc (NASDAQ:TTD), Magnite, Inc (NASDAQ:MGNI), DoubleVerify Holdings, Inc (NYSE:DV), Perion Network Ltd (NASDAQ:PERI), Criteo (NASDAQ:CRTO), and Outbrain Inc (NASDAQ:OB) stocks gained close to 1%-2%. Digital Turbine, Inc (NASDAQ:APPS), PubMatic, Inc (NASDAQ:PUBM), and Integral Ad Science Holding Corp (NASDAQ:IAS) gained 3%-4%.
Publisher stocks, including New York Times Co (NYSE:NYT), News Corp (NASDAQ:NWS), MarketWise, Inc] (NASDAQ:MKTW), Gannett Co, Inc (NYSE:GCI), and Scholastic Corp (NASDAQ:SCHL), are up following the update.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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