diff --git a/src/vs/workbench/services/environment/browser/environmentService.ts b/src/vs/workbench/services/environment/browser/environmentService.ts
index 7cc447fae6..b476316e21 100644
--- a/src/vs/workbench/services/environment/browser/environmentService.ts
+++ b/src/vs/workbench/services/environment/browser/environmentService.ts
@@ -235,7 +235,7 @@ export class BrowserWorkbenchEnvironmentService implements IWorkbenchEnvironment
 		return `${uri.scheme}://${uri.authority}`;
 	}
 
-	get disableTelemetry(): boolean { return false; }
+	get disableTelemetry(): boolean { return true; } // {{SQL CARBON EDIT}} permanently disable telemetry for web instead of perminently enable
 
 	get verbose(): boolean { return this.payload?.get('verbose') === 'true'; }
 	get logExtensionHostCommunication(): boolean { return this.payload?.get('logExtensionHostCommunication') === 'true'; }
diff --git a/test/automation/src/playwrightDriver.ts b/test/automation/src/playwrightDriver.ts
index 315b93cf7f..059b77f277 100644
--- a/test/automation/src/playwrightDriver.ts
+++ b/test/automation/src/playwrightDriver.ts
@@ -114,7 +114,7 @@ export async function launch(userDataDir: string, _workspacePath: string, codeSe
 	}
 	server = spawn(
 		serverLocation,
-		['--browser', 'none', '--driver', 'web', '--extensions-dir', extPath, '--disable-telemetry', 'true'], // {{SQL CARBON EDIT}} disable telemetry
+		['--browser', 'none', '--driver', 'web', '--extensions-dir', extPath],
 		{ env }
 	);
 	server.stderr?.on('data', error => console.log(`Server stderr: ${error}`));