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European Parliament Backs Proposal to Ban Some Targeted Ads

Updated: Feb 11, 2022

European Parliament Backs Proposal to Ban Some Targeted Ads

In a major decision, the European Parliament has voted to approve initial draft of Digital Services Act (DSA). This is going to have impact the big tech firms for advertising revenues.

A total of 530 Members voted in favour of the proposal. While 78 MEPs voted against the act, and 80 abstained from voting.

The primary objective of these curbs is going to impact mega tech firms like Facebook, Amazon and Google who controls large amount of meta-data including user info. This decision however will also impact global OTT players who rely on targeted ads.

The DSA would prevent big tech platforms from using sensitive information – including race, religion and sexual orientation – in targeted ads. These companies will also be required to give users an easy-to-find option to opt out of tracking.

The proposal also pressures platforms to remove illegal content and products online, while also seeking to prevent the spread of disinformation.

Danish MEP and lead negotiator for the act Christel Schaldemose said: “Today’s vote shows MEPs and EU citizens want an ambitious digital regulation fit for the future. Much has changed in the 20 years since we adopted the e-commerce directive. Online platforms have become increasingly important in our daily life, bringing new opportunities, but also new risks. It is our duty to make sure that what is illegal offline is illegal online. We need to ensure that we put in place digital rules to the benefit of consumers and citizens. Now we can enter into negotiations with the Council, and I believe we will be able to deliver on these issues.”

Despite this approval, the DSA still is facing hurdles such as negotiations with the European Council which will start on January 31.

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