EU parliamentarians report ad onslaught ahead of DMA

A wide-ranging piece of legislation is due to go in front of the European parliament, sparking a flurry of ads from lobby groups opposed to the Digital Markets Act’s strictest aspects.

Connections to platforms

First reported by the FT, parliamentarians are noticing intense targeted advertising against a key proposal: a curb on targeted advertising in favour of contextual advertising systems that are seen as more private. With discussions beginning on the 11th January, the EU hopes to reach an agreement by late March.

Certain MEPs believe that Google, having seen how the developing negotiations around the legislation could hit its business hard, is behind much of the lobbying, which is pursued through groups heavily funded by the search and ad giant.

The argument deployed by Google is that such measures would not only hit its business but limit the ability of small businesses to access advertising services enabled by targeting where broad-reach traditional methods would be out of reach.

Context

• The DMA is not necessarily about advertising, but it touches on its interests. The legislation’s key focus is ‘gatekeeper’ organisations, large digital platforms that enjoy near-dominant roles in the online economy. This power, proponents of the law argue, has allowed Google to boost its own businesses such as comparison services using search space that can also be sold to competitors in these industries.
• There are signs that the winds are changing. Germany has designated the firm a ‘gatekeeper’, meaning it can exercise greater oversight. Antitrust cases across Europe are asking fundamental questions about the company’s business model, and in the case of Luxembourg’s General Court, ruling against it.

Sourced from the Financial Times