NIXsolutions: Google’s Response to DMA and Implications for Users and Advertisers

Google has introduced significant changes to its services in anticipation of the Digital Markets Act (DMA) taking effect in the European Union (EU) on March 7. As a designated “gatekeeper” under the DMA, Google faces stringent regulations aimed at fostering fair competition in digital markets.

Enhanced User Choice in Set-Up:

Starting March 6, Android devices will feature additional browser and search engine selection screens during the initial setup. Google emphasizes that these changes are informed by user research, testing, and industry feedback, aligning with DMA guidelines.

NIXsolutions

Privacy Measures and Consent Banners:

To comply with DMA privacy requirements, Google will no longer link personal data across user accounts by default. However, the company introduces “consent banners” to encourage users to re-enable tracking, prompting scrutiny over compliance with DMA’s prohibition on manipulative practices.

Advertising Updates and Data Transparency:

Google plans multiple updates to advertising products to align with EU end-user consent policies. Under DMA, the company commits to providing advertisers with additional data, prioritizing user privacy and safeguarding business information.

Empowering Developers and Data Portability:

DMA compels Google to allow Android developers to incorporate links to third-party payment systems, reducing reliance on Google fees. Additionally, Google introduces a data transfer API, supporting data portability. This move aligns with DMA’s goal to enhance competition by facilitating seamless transitions between services.

Industry-Wide Changes:

Google, alongside other DMA-designated gatekeepers such as Amazon, Apple, Meta, Microsoft, and ByteDance, prepares for the regulatory landscape shift. These companies adapt their services to comply with DMA, recognizing the need to limit gatekeepers’ powers and ensure fair competition.

The DMA takes effect on March 7, initiating public regulatory reports and workshops by the European Commission, reminds NIXsolutions. The Commission, as the sole DMA implementer, holds investigative powers to ensure swift compliance. Stakeholders express concerns, urging strict enforcement of DMA rules to align major IT market players with regulatory requirements.