Google is tightening its data privacy policies for European-targeted ads to comply with the Digital Markets Act (DMA).
Brands and advertisers will begin 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 Tougher data privacy policies may affect Google’s ability to deliver personalized ads and content. This could reduce the effectiveness of advertising campaigns, as they may not effectively reach the desired target audience with precision.
Additional consents. Google will roll out a new consent banner for EU users in the coming weeks. It will ask for permission to share data for personalized content and ads. If you do not give permission, some features may be limited or unavailable.
Data portability. To address the 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 multiple applications, programs, computing environments, or cloud services. This allows service providers to pursue targeted advertising.
Choice screens. Google is also introducing additional selection screens to Android phones, allowing users to more easily change their default search engine or browser. These screens will be visible during device setup on Android phones and in the Chrome app on desktop and iOS devices.
Refresh search. Additionally, Google is adding dedicated units with links to various comparison sites and search page shortcuts to refine searches in the coming weeks. In specific categories such as hotels, Google is testing a dedicated space for comparison sites and direct suppliers to show more detailed results, such as star ratings. Some features, such as the Google Flights drive, will be removed when the changes are implemented.
What is the Digital Markets Act (DMA)? The DMA is a new law designed to ensure that large online platforms, called “gatekeepers”, behave fairly online to create a fair and open environment for online businesses. The law comes into effect in March.
Who are the goalkeepers? Gatekeepers are large online platforms like Google that meet the following criteria:
It has a strong economic position with a significant impact on the internal market and is active in several EU countries. It has a strong intermediary position, meaning it links a large user base to a large number of companies. It has (or is about to have) an established and durable position in the market, that is, it is stable over time if the company meets the two criteria above in each of the last three financial years.
Sanctions for violation of DMA. The consequences of breaching the DMA include:
Fines: up to 10% of the company’s total annual turnover worldwide, or up to 20% for repeated violations. Periodic penalties: up to 5% of a company’s average daily turnover. Remedies: May include behavioral and structural remedies, such as divestment of (parts of) a company.
What Google says. Oliver Bethell, Google’s chief legal officer, said in a statement:
“Over the past few months we have been seeking feedback on our changes from the European Commission and from stakeholders such as developers, advertisers and businesses who will be affected by them.” “While we support many of the DMA’s ambitions for consumer choice and interoperability, the new rules involve difficult trade-offs, and we are concerned that some of these rules will reduce the options available to people and businesses in Europe”. “We will share more details about the final changes we are making to comply with the new rules before the March deadline.”
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deep dive Read Google’s announcement in full for more information.
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