🌯 IAB Report Reveals Privacy Sandbox Challenges, But Google Addresses Critics

Is the cookiepocalypse over before its inception? Many critics spoke out against Google's Privacy Sandbox and the company's true motives for deprecating third-party cookies. Now, Chrome's cookie annihilation may be put on pause.

Google must address concerns that the UK's Competition and Markets Authority (CMA) first raised in 2021 before proceeding with third-party cookie deprecation. Failure to adequately resolve issues related to proposed Privacy Sandbox changes may postpone Chrome's third-party cookie deprecation, scheduled for the latter half of 2024.

If the CMA’s concerns lead Google to postpone deprecation, publishers may have additional time to explore third-party cookie alternatives. However, publishers should not assume a delay, as Google is working with the CMA and still has an opportunity to address these issues. Here are the CMA's concerns:

• Google might retain access to user activity data while restricting competitors' access.
• Google's control over including ad tech rivals could benefit its ad tech services.
• Publishers and advertisers may struggle to detect fraudulent activity effectively.

Regarding the most recent CMA report, Google said, "We continue to move forward with our plans to phase out third-party cookies in H2 2024, subject to addressing any remaining competition concerns from the UK CMA. We are confident the industry can make the transition in 2024 based on all the tremendous progress we’ve seen from leading companies.”

In addition, the IAB Tech Lab released a report analyzing the Privacy Sandbox that revealed some significant challenges. According to IAB Tech Lab CEO Anthony Katsur, "Our findings highlight that the industry isn't ready yet and identify multiple challenges to implementation due to limitations in accomplishing key advertising objectives."

The report pinpointed several key issues, such as essential event-based metrics, brand safety concerns, on-browser computing complications, and a lack of consideration for commercial requirements.

Google responded to the IAB asserting they always welcome criticism from the industry, but that their reports include dozens of inaccuracies, fundamental errors, and instances of incomplete information. Furthermore, a Google spokesperson said, "While we’re disappointed that IAB Tech Lab released the report in this state, we’re encouraged by the many IAB members who are actively building solutions using the Privacy Sandbox APIs. And we look forward to partnering with the IAB Tech Lab in transitioning the industry toward more private solutions." 

The IAB Tech Lab has a 45-day open period for industry stakeholders to comment on the report, and they are taking notice. Katie Cladis, VP of Product, Digital Remedy, acknowledges that the report is concerning, but she does not believe this is the end of third-party cookie deprecation. This report is an effort to highlight the elements that Chrome must address before actual cookie deprecation.

"My biggest concern is the retooling that might be required for the ad rendering process and bidding capabilities - the heart of programmatic. The industry may require innovation if these issues aren't addressed," said Cladis. "However, there's still time to address these concerns and ensure an effective, transparent ad ecosystem that respects consumer privacy and advertisers' ability to reach and influence their consumers." – AB

An earlier version of this story included the headline, "The UK's Competition and Markets Authority Urges Chrome to Halt Cookie Deprecation Plans." This version also includes feedback from Google. We want to make it clear that the CMA did not direct Google to completely stop cookie deprecation. Google and the CMA are working together to address the concerns they first raised in 2021 to make sure their timeline is feasible.