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Google is strengthening its data privacy policy for targeted advertising in Europe to comply with the Digital Markets Act (DMA).
Brands and advertisers will start to notice the changes, such as additional consent banners and a new Data Portability API, as they roll out in the coming weeks.
Why we care. Stricter data privacy policies could impact Google’s ability to deliver personalized ads and content. This could potentially reduce the effectiveness of advertising campaigns, as they may not reach the desired target group as accurately.
Additional permissions. Google will roll out a new consent banner for users in the EU in the coming weeks. Consent is requested to share data for personalized content and advertisements. If you do not consent, certain functions may be limited or unavailable.
Data portability. To address new requirements for transferring data to third-party apps or services, Google will soon test a Data Portability API for developers.
What is data portability? Data portability is the transfer of data between different applications, programs, computing environments, or cloud services. This allows service providers to advertise in a targeted manner.
Selection screens. Google is also introducing additional choice screens on Android phones, making it easier for users to switch default search engines or browsers. These screens are visible during device setup on Android phones and in the Chrome app on desktop and iOS devices.
Search update. In addition, Google adds special units with links to various comparison sites and shortcuts to search pages to help refine searches in the coming weeks. In specific categories, such as hotels, Google is testing a special space for comparison sites and direct suppliers to show more detailed results, such as star ratings. Some features, such as the Google Flights unit, will be removed when the changes are implemented.
What is the Digital Markets Act (DMA)? The DMA is a new piece of legislation designed to ensure that major online platforms, called ‘gatekeepers’, behave fairly online to create a fair and open environment for online businesses. The legislation will come into effect in March.
Who are the gatekeepers? Gatekeepers are large online platforms such as Google that meet the following criteria:
- Has a strong economic position with a significant impact on the internal market and is active in several EU countries
- Has a strong intermediary position, which means that it links a large user base to a large number of companies.
- Has (or is about to have) an entrenched and sustainable position in the market, meaning it is stable over time if the company met the two criteria above in each of the past three financial years.
Sanctions for violation of the DMA. The consequences of not complying with the DMA include:
- Fines: Up to 10% of the company’s total annual worldwide turnover, or up to 20% for repeat violations.
- Compulsions: Maximum 5% of a company’s average daily turnover.
- Remedies: These can be behavioral and structural remedies, such as the divestiture of (parts of) a company.
What Google says. Oliver Bethell, Director of Legal at Google, said in a statement:
- “Over the past few months we have sought feedback on our changes from the European Commission and from stakeholders such as developers, advertisers and businesses that will be affected.”
- “While we support many of the DMA’s ambitions around consumer choice and interoperability, the new rules pose difficult trade-offs, and we are concerned that some of these rules will undermine the choices available to people and businesses in Europe to limit.”
- “We will share more details about the latest changes we are making to comply with the new rules before the March deadline.”
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Deep dive. Read Google’s announcement complete for more information.
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