Google modifies information confidentiality rules for tailored promotions in the EU

Google Strengthens Data Privacy Rules for Targeted Adverts in Europe

In the wake of new legislation aimed at establishing fair play online, Google is taking measures to beef up its data privacy policies, specifically for targeted ads. They are making efforts to keep within the lines of the impending Digital Markets Act (DMA), an initiative conceived and implemented by the European Union.

Noticeable Changes for Brands and Advertisers

Advertisers and brands will gradually become privy to certain modifications to the advertising landscape. Among these updates are the addition of consent banners and the introduction of a Data Portability API. These implementations underscore a potential repercussion of more stringent data privacy measures, which may undermine Google’s ability to provide personalised ads and content, possibly diminishing the effectiveness of ad campaigns.

Consent Banners and Data Portability

As part of the changes, Google is slated to introduce a new consent banner for EU users, asking them for authorization to use their data for personalised content and ads. This measure is such that in cases where consent is withheld, users might experience restrictions, or might be denied access to some features.

One of the tangible responses to the provisions of the DMA, specifically for data transfers to third-party apps or services, is the testing of a Data Portability API that Google will soon be rolling out. This privacy feature permits seamless transfer of data between varying apps, computing environments, or cloud services – critical for targeted advertising.

Additional System and Search Updates

Another feature users can look forward to is the addition of more choice screens on Android phones which simplifies the process of switching default browsers or search engines. This will manifest during the device setup process on Android phones and within the Chrome app on both desktop and iOS devices.

What is the Digital Markets Act?

The DMA is a recent legislation aimed at making sure large online platforms, referred to as “gatekeepers”, operate in a fair and ethical manner. It’s a strategic move to foster an unbiased and open environment for businesses in the online space. This legislation is due to take effect in March.

The Gatekeepers and Consequences of Non-compliance

‘Gatekeepers’ are dominant online platforms such as Google that satisfy specific criteria, including a significant influence on the internal market, a robust intermediation position, and a stable presence in the market over a prolonged period.

The DMA includes severe penalties for non-compliance. Penalties range from fines which could go as high as 10% to 20% of a company’s total global annual turnover for repeated infringements. Companies may also have to pay periodic penalty payments of up to 5% of their average daily turnover. In addition, violators may be subject to other ramifications, including behavioural and structural remedies like divesting parts or all of a business.

Google’s Response to the DMA

In response to the DMA, Google’s Director on Legal matters, Oliver Bethell, has expressed that the tech giant had held consultations with the European Commission and stakeholders like developers and companies, who would be impacted by the changes. While expressing their support for the DMA’s aims concerning user choice and interoperability, Bethell mentioned challenging compromises that come with the new rule, voicing concerns about the possible reduction in the options available to businesses and people in Europe.

Detailed Information and Next Steps

For a more detailed insight on Google’s response to the DMA, please refer to Google’s announcement in its entirety. Digital Sunbird will continue to share updates on Google’s compliance with the DMA closer to the commencement of the legislation.

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