Google Toughens Data Privacy Policies for Targeted Ads in Europe to Comply with Digital Markets Act (DMA)

Google is making significant changes to its data privacy policies for targeted ads in Europe to comply with the Digital Markets Act (DMA), and brands and advertisers will soon start to notice the impact. The new policies include additional consent banners and a Data Portability API, which could potentially affect the effectiveness of advertising campaigns by limiting the ability to deliver personalized content and ads accurately.

One of the key changes is the introduction of a new consent banner that will ask users in the EU for permission to share data for personalized content and ads. If users do not give permission, certain features may be limited or unavailable. Additionally, Google will be testing a Data Portability API to meet new requirements for transferring data to third-party apps or services.

In an effort to provide more choice to users, Google is also introducing additional choice screens on Android phones, allowing users to easily switch their default search engine or browser. These screens will be visible during device setup on Android phones and within the Chrome app on desktop and iOS devices.

Furthermore, Google is updating its search results in Europe to include dedicated units with links to various comparison sites and search page shortcuts for refining searches. The company is also trialing a dedicated space for comparison sites and direct suppliers in specific categories like hotels to show more detailed results.

The Digital Markets Act (DMA) is a new legislation aimed at ensuring fair behavior from large online platforms, known as “gatekeepers”, like Google. Gatekeepers are platforms with a strong economic and intermediation position in the market, and non-compliance with the DMA can result in fines, periodic penalty payments, and remedies such as divestiture of business parts.

Google’s Director of Legal, Oliver Bethell, expressed concerns about the trade-offs involved in complying with the DMA but stated that the company will share more details on the final changes ahead of the March deadline.

Overall, these changes by Google reflect a broader effort to enhance data privacy and provide more choice to users in Europe, while also navigating the complexities of regulatory requirements.