The EU Digital Services Act: what does it mean for online advertising and adtech?

• URL: http://arxiv.org/abs/2503.05764v1
• Date: Mon, 24 Feb 2025 09:50:19 GMT
• Title: The EU Digital Services Act: what does it mean for online advertising and adtech?
• Authors: Pieter Wolters, Frederik Zuiderveen Borgesius,
• Abstract summary: Digital Services Act (DSA) applies to some types of ad tech companies.<n>Ad networks, companies that connect advertisers to apps and websites, should be considered platforms.<n>Some ad networks may even qualify as publishers of apps and websites.
• Score: 0.0
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: What does the Digital Services Act (DSA) mean for online advertising? We describe and analyse the DSA rules that are most relevant for online advertising and adtech (advertising technology). We also highlight to what extent the DSA's advertising rules add something to the rules in the General Data Protection Regulation (GDPR) and the ePrivacy Directive. The DSA introduces several specific requirements for online advertising. First, the DSA imposes transparency requirements in relation to advertisements. Second, very large online platforms (VLOPs) should develop a publicly available repository with information about the ads they presented. Third, the DSA bans profiling-based advertising (behavioural advertising) if it uses sensitive data or if it targets children. Besides these specific provisions, the general rules of the DSA on illegal content also apply to advertising. Advertisements are a form of information, and thus subject to the general DSA rules. Moreover, we conclude that the DSA applies to some types of ad tech companies. For example, ad networks, companies that connect advertisers to publishers of apps and websites, should be considered platforms. Some ad networks may even qualify as VLOPs. Hence, ad networks must comply with the more general obligations in the DSA. The application of these general rules to advertisements and ad networks can have far-reaching effects that have been underexplored and deserve further research. We also show that certain aspects of the DSA are still unclear. For instance, we encourage the European Commission or regulators to clarify the concepts of 'online platform' and 'recipients' in the context of ad networks and other adtech companies.

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