EU adopts new digital law to create more competitive digital markets

The European Union has formally adopted the Digital Markets Act (DMA),

a new law designed to create more competitive digital markets and curb the market power of around 15-20 very large online ‘gatekeeper’ platforms.

The DMA, which aims to drive transparency in the way online platforms provide advertising services, will only apply to platforms operating in at least three EU member states with an annual EU turnover equal to or above EUR 7.5 billion, with more than 45 million monthly active EU users and with 10,000 annual active business users.

The DMA includes several data sharing obligations which are aimed at creating fairer conditions for business users, including for advertisers. These could help advertisers access key measurement and pricing data in order to independently audit the performance of ‘gatekeeper’ platforms’ advertising services and audit their ad spend. The World Federation of Advertiser, of which AANA is a member, has strongly supported the obligations, and has successfully advocated for a number of improvements.

The DMA will enter into force twenty days after its publication in the Official Journal which could happen as soon as the new next few weeks. The DMA will then start to apply six months following its entry into force, expected for January 2023.

Meanwhile, the UK government has proposed to parliament a Data Protection and Digital Information (DPDI) Bill, a post-Brexit initiative which includes reforms to the UK’s data protection laws. The Bill, which will be subject to parliamentary scrutiny from 5 September, relaxes cookie consent requirements for audience measurement, creates a new concept of ‘recognised legitimate interests’ and grants greater flexibility for data transfers. However, the Bill also raises questions about whether the UK reforms diverge too far from the EU’s General Data Protection Regulation (GDPR) and risk the continued free flow of personal data under the EU’s existing adequacy decision for the UK.