Google's Post-Cookie Targeting Plans Hit GDPR Hurdle

The clock is ticking for the online ad industry to transition to more privacy-centric ways as Google prepares to withdraw support for third-party cookies in its Chrome browser next year. For some, the window of preparation will be a little tighter as the industry grapples with new ad targeting standards and how they align with privacy laws. In recent weeks, it has become clear Google is doubling down on its Privacy Sandbox proposals whereby the one-to-one targeting of the cookie-centric era is to be substituted with cohort-based targeting, or federated learning of cohorts (FLoCs). W3C drama Google is poised to begin FLoC trials in Chrome with the wider industry in the U.S. during the coming weeks. But these plans are hitting a stumbling block in Europe due to concerns over their compatibility with General Data Protection Regulations (GDPR). Europe is such a different landscape from the other global markets, and it has felt a bit as if this fact gets glossed over.—Townsend Feehan, CEO, IAB Europe The development emerged Tuesday at a meeting of the Improving Web Business Advertising Group at web standards body W3C where Google engineer Michael Kleber informed fellow working group members from across the industry. As first reported by AdExchanger, Kleber acknowledged that FLoCs may not be compatible with GDPR requirements. Adweek confirmed the developments with several attendees of the W3C meeting, with one source, who requested anonymity, describing it as “certainly a surprise, and a worrying one at that.” Uncertainty Specifically, there is uncertainty as to which party—either the publisher or the web browser—would constitute a “data controller” and a “data processor” (a key requirement under GDPR), especially without prior consent from a user. Some believe the delay is due to Google awaiting feedback on the Privacy Sandbox developments from the relevant regulators across the European Economic Area, which houses more than 500 million people. And, at present, there is still no clear timeline as to the rollout of FLoC origin trials. "We are starting this FLoC origin trial for users in the U.S. and select other countries, and we expect to make FLoC available for testing worldwide at a later date," reads a statement Google sent to Adweek. "We are working to begin testing in Europe as soon as possible. We are 100% committed to the Privacy Sandbox in Europe," the statement continued. Irony The development is ironic given that Google’s messaging around its Privacy Sandbox proposals has consistently centered on its “privacy-preserving APIs.” We expect to make FLoC available for testing worldwide at a later date.—A Google spokesperson Adweek's W3C source added, “What really caught a lot of us by surprise is the idea that FLoC … is supposed to be a privacy-preserving approach, presumably, GDPR would not be an issue. This implies that it might not pass muster.” As Google pushes ahead with its FLoC trials, publishers in the GDPR zone are now faced with decisions as to whether or not it is worth dedicating resources to these trials, given the ongoing uncertainty. “[EU] publishers that have been dedicating resources to these trials have to ask themselves whether or not they’ve been burned and what does that mean for their ability to pick these up in the future?" continued the source. European publishers are frustrated Townsend Feehan, CEO at IAB Europe, told Adweek there were concerns over European publishers being "left out" at a critical stage of technological development. "Europe is such a different landscape from the other global markets, and it has felt a bit as if this fact gets glossed over," she said. Feehan also spoke of frustration over Google's choice of venue for cross-industry consultation about Privacy Sandbox's tech standards. The W3C’s Improving Web Advertising Business Group, a forum where policy, such as privacy matters, are not debated. My fear is that the development happens more due to U.S. ad tech needs than end-user needs—Ingvild Næss, chief privacy and data trends officer, Schibsted "On the one hand, privacy is the adduced reason for the changes, but on the other hand, there has been little opportunity for any kind of structured reflection on what standard of privacy one was working to," said Feehan. Rezaul Haque, commercial technology director at Hearst Magazines U.K., told Adweek the delay could prove problematic as there still remains so many question marks on how the evolving tech standards will operate. "FLoC is one area that everyone is keen to know more about, see in action and test, so it is a shame that there are delays," he added. Meanwhile, Ingvild Næss, chief privacy and data trends officer at Norway-based publishing house Schibsted, noted how Google's approach to such privacy-preserving technologies was "hard to grasp." "My fear is that the development happens more due to U.S. ad tech needs than end-user needs," she said. "There are numerous questions relating to FLoC and GDPR." Less time, more difficulty For Aram Zucker-Scharff, ad engineering director for The Washington Post's Research, Experimentation and Development (RED) team, the narrower the window, the more difficult it will be for publishers to adjust. "Proposals for investing in the Privacy Sandbox should be an easier proposition for all involved and prioritize the value that can be returned from FLoC participation," he said. Jochen Schlosser, CTO of Denmark-headquartered ad-tech company Adform, noted how technologies such as decentralized federated algorithms are still in development and have always been a complex subject. "It is why we believe that the application of first-party data of publishers and advertisers with dedicated controls for consumers is the right path forward," he said. How Cookies Work and Why They’re Going Away

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Google’s Post-Cookie Targeting Plans Stumble at a GDPR Hurdle

The online giant will delay FLoC experiments in Europe over privacy requirements

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