Everything you need to know about the Digital Markets Act

Written by Jack Butler, Paid Social Team Lead

The Tag Digital team is here to guide you through the new European Digital Markets Act (DMA) and what it means for you as a marketer.

What is the Digital Markets Act?

A new law in the European Union that aims to ensure large online tech companies, that have significant control over the market, play fair.

The Digital Markets Act (DMA) legislation regulates key digital platform services including search engines, video sharing platforms and social networks.

The Act does this by setting rules on how these companies can operate to prevent them from abusing their power, making it easier for smaller companies to compete. If these big companies don’t follow the rules, they can be fined.

Big platforms like Google and Apple are concerned. The bulk of this legislation is aimed at them to prevent them from preferring Safari or preferring Google Weather at the top of a Google search for instance. 

Explain it Like I’m Five

Imagine you’re playing in a playground where one kid decides who gets to play on the slide and who doesn’t. Now, there are new playground rules to make sure that kid plays fair.

These rules say:

• They can’t just let their friends cut in line.
• They have to share the slide and let others play too.
• If they don’t play fair, they might get a time-out.

These rules help make sure everyone gets a turn and the playground is fun for all.

Why does this matter to marketers?

DMA Overview:

This law ensures big online companies, like Google and Apple, don’t unfairly dominate the market. It’s like making sure everyone gets a turn on the playground slide.

What is the impact?

Minimal! There’s a chance we will access platform features sooner. However, it’s crucial that users can opt-out of tracking, aligning with previous GDPR requirements.

What is the cookie consent compliance?

Your website’s cookie consent banner must:

• Clearly explain cookie use and purpose.
• Allow users to accept or reject non-essential cookies without pre-selection.
• Enable easy consent withdrawal.
• Not restrict access for rejecting non-essential cookies.

Checking Compliance:

After rejecting cookies, ensure no third-party cookies (like a TikTok Pixel) are active. Use Chrome’s incognito mode or clear your cache to accurately check.

Geographical Scope:

Primarily the EU, but similar regulations may apply elsewhere, such as the UK.

Timeline:

The DMA takes effect in May 2024, but GDPR has required compliant cookie consent since 2018.

Why it Matters:

Non-compliance can lead to hefty fines. It’s crucial for businesses, including those based outside the EU but who are targeting EU customers, to comply.

Effect on Paid Advertising Campaigns:

Expect potential drops in audience sizes as non-consenting users won’t be tracked. Consider migrating to server-to-server APIs for more accurate, anonymous tracking.

Read our full blog, Enhancing Digital Marketing Success with Server-to-Server Events, to find out what Server-to-Server events are and why they are needed.

For more information, reach out to our team on Live Chat or read our blogpost on the Frequently Asked Questions on the Digital Markets Act.