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Day 1 of the Digital Markets Act (DMA): the journey ahead & expectations for online advertising

7 March 2024

7 March 2024 – As of today, tech companies identified as ‘gatekeepers’ according to the EU’s Digital Markets Act (DMA) are required to adjust their “core platform services” to an extensive array of obligations that should foster a fair and competitive digital environment.

The Digital Markets Act is poised to have a profound impact on online advertising dynamics within the European Union. By targeting the practices of dominant online platforms, the DMA seeks to level the playing field for smaller competitors and foster innovation. With stricter rules around data usage, price transparency, and enhanced access to the measurement data of advertising campaigns, advertisers, publishers, and their partners are expected to benefit from a more transparent and competitive advertising landscape. This may also lead to adjustments in advertising strategies and investments, as companies navigate the new regulatory environment and explore alternative solutions to reach their target audiences.

Just like Rome was not built in a single day, we should not expect the DMA to immediately deliver a fairer digital market for online advertising.  Market fairness is not absolute and will require continual and iterative reassessment. It is thus imperative for the European Commission to engage proactively with all relevant stakeholders. This includes not only major tech companies but also smaller businesses, advertisers, consumer rights groups, and regulatory bodies. By fostering open dialogue and soliciting feedback from various stakeholders, the Commission can address concerns, clarify ambiguities, and fine-tune the regulatory framework to achieve its intended goals. Collaboration and cooperation among all parties are essential to strike a balance between fostering innovation and competition while safeguarding consumer rights and a vibrant digital market ecosystem.

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