Google is dropping its plans to remove third-party advertising cookies from its Chrome web browser, around five years after launching a scheme looking for ways to carry out the process.

The tech giant’s Privacy Sandbox was launched in 2019 to find new ways to improve online privacy by restricting cookies – small pieces of online data used by advertisers to serve people targeted ads on the web.

But in a blog post published on Monday evening, Anthony Chavez, the vice president of Privacy Sandbox said that while the scheme’s work had shown signs of success, it also required “significant work by many participants and will have an impact on publishers, advertisers and everyone involved in online advertising”.

As a result, he confirmed Google was changing its approach to an opt-in system that “elevates user choice”.

“Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time,” he said.

“We’re discussing this new path with regulators, and will engage with the industry as we roll this out.”

Google has worked particularly closely with regulators in the UK on the scheme, including the Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO).

In response to Google’s announcement about its change of approach, a spokesperson for the CMA said: “We intervened and put in place commitments in 2022 because of concerns that Google’s Privacy Sandbox proposals could distort competition by causing advertising spend to become even more concentrated on Google’s ecosystem at the expense of its competitors.

“We will need to carefully consider Google’s new approach to Privacy Sandbox, working closely with the ICO in this regard, and welcome views on Google’s revised approach – including possible implications for consumers and market outcomes.”

Stephen Bonner, deputy commissioner at the ICO said: “We are disappointed that Google has changed its plans and no longer intends to deprecate third-party cookies from the Chrome Browser.

“From the start of Google’s Sandbox project in 2019, it has been our view that blocking third-party cookies would be a positive step for consumers.

“The new plan set out by Google is a significant change and we will reflect on this new course of action when more detail is available.

“Our ambition to support the creation of a more privacy-friendly internet continues. Despite Google’s decision, we continue to encourage the digital advertising industry to move to more private alternatives to third-party cookies – and not to resort to more opaque forms of tracking.

“We will monitor how the industry responds and consider regulatory action where systemic non-compliance is identified for all companies including Google.”