The technology Microsoft is developing would track users on computers, tablets, and smartphones that run Windows operating systems, as well as on the Xbox video game consoles and online services like Internet Explorer and Bing.
The news represents the latest blow to third-party cookies, small pieces of code that companies use to track internet browsing and marketers use to target advertisements across the web. Though pervasive across the internet just a few years ago, these cookies, which critics say are an invasion of privacy, are now thought to be headed toward extinction, even though a huge chunk of the web
The shift away from cookies has also been hastened by the increase in mobile device usage. There are no cookies anywhere in Apple's iPad and iPhones, and Android devices only use them in the web browser, meaning cookies do not track Android users while they are using apps.
Microsoft's move is another step toward a possible scenario where third-party cookies give way to several large internet companies (Microsoft, Google,
The demise of the cookie is something of a victory for Microsoft after it was roundly mocked on the internet when it announced last year that its Internet Explorer 10 would feature a "Do Not Track" default setting. While a huge portion of Google's business is built around cookies (Chrome browser is the only major browser that tracks users by default), Microsoft's business is largely unaffected because the company makes the lion's share of its revenues from selling products as opposed to advertisements.
Moving forward, the companies will battle to create an industry-wide tracking standard that gives them so much data that advertisers will have no choice but to do business with them and rival platforms will be forced to support the new standard.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.