DMA Amendments: Targeted Online Advertising [PUBLICATION]

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Last year, the European Commission came up with proposals to regulate digital services in the form of the Digital Markets Act, which has the potential to significantly change the way the internet works in the EU. We have therefore covered this topic more extensively and in more depth in two analyses.

Our first analytical response was a study entitled: Economic Analysis of Digital Markets Act. We discussed the general premises underlying the regulation and used three case studies to highlight its shortcomings and potential unintended consequences.



In our latest study, Economic Analysis of Selected DMA Amendments: Targeted Online Advertising, we look in more detail at one specific area of the proposed regulation. Specifically, the area of online targeted advertising, which plays a key role in today’s online world.

In our study, we show how the amendments and proposals by some MEPs to the DMA to significantly restrict or outright ban targeted online advertising could have serious negative consequences for several sectors in the economy and society.

In particular, we focus on the analysis of negative impacts on SMEs, consumers, publishers and civil society and culture.

All of these sectors would be negatively affected by a deterioration in the effectiveness of online advertising, resulting in lower revenues for them, higher information costs, lower revenues from content creation and distribution, and, last but not least, such regulation would substantially reduce the public outreach of civic activities and non-profit organizations and thus make it significantly more difficult for them to operate.

The study also includes statements from three experts.

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