EU lawmakers vote for tougher rules on ad tracking
The proposals are part of the EU's ongoing fight to regulate tech giants
A key committee of EU lawmakers on Tuesday voted to approve measures in the draft Digital Markets Act (DMA), which could impact advertising giants such as Facebook and Google.
The Internal Market and Consumer Protection Committee (IMCO) said the DMA proposal will ban 'gatekeepers' from using personal data to deliver targeted and micro-targeted advertising unless there is 'clear, explicit, renewed, informed' consent. In addition, minors' personal data cannot be processed at all for commercial purposes.
Members accepted the proposal with 42 votes in favour, two against and one abstention.
IMCO defines a 'gatekeeper' as a major company that offers 'core platform services' - including online intermediation, online advertising, search engines, social networks, operating systems, cloud computing and video sharing - in at least three EU countries.
Targeting tech giants
A firm must have at least 45 million monthly end-users and 10,000+ business users to be deemed a gatekeeper, but the EU Commission could designate other companies as gatekeepers on a case-by-case basis.
Companies identified as gatekeepers today include Amazon, Google, Facebook, and Apple. Travel website Booking.com and online marketplaces Zalando and Alibaba could also meet the criteria.
The European Commission introduced two legislative proposals last year as part of a major attempt to overhaul the digital space and regulate big technology firms.
The Digital Services Act (DSA) and the Digital Markets Act (DMA) will apply on all digital services, including online market places, social media and other online platforms operating in the EU.
The main aim of introducing the rules is to 'better protect consumers and their fundamental rights online', says the European Commission. It intends for the regulations to create a level playing field and to lead to 'fairer and more open' digital markets in the region.
Going further
IMCO says the DMA will blacklist certain big tech platforms' practices while enabling the European Commission to conduct market probes and ban non-compliant behaviours.
As per the draft law, a company with 'gatekeeper' status shall 'for its own commercial purposes, and the placement of third-party advertising in its own services, refrain from combining personal data for the purpose of delivering targeted or micro-targeted advertising', unless given a 'clear, explicit, renewed, informed consent' in line with the General Data Protection Regulation.
Breaches of the rules would result in financial penalties of between 4 per cent and 20 per cent of a company's global turnover.
"Great news! Today's @EP_SingleMarket vote brings us one step closer to the DMA's adoption," EU antitrust chief Margrethe Vestager tweeted.
"One step closer to a free, fair and competitive Tech market where all players stand a chance to make it."
The EU's new tech rules are expected to come into force next year. The IMCO vote now needs to be followed by a plenary vote in the European Parliament next month, after which it will head over to the EU Council for negotiations with member states.