Blog: The impact of the Digital Markets Act and the future of third-party cookies 

Many more important browsers block third-party cookies by default. This is a victory for consumer privacy. Google will not disable third-party cookies by default but leave that choice to the user. Exactly what impact that will have on ads is not yet clear, but brands will have to find alternatives to continue personalising based on data.   

To stay competitive, brands need to adopt an integrated strategy that relies on first-party data. The good news is that first-party data is more reliable, meaningful and ethical than third-party data, and often more cost-effective. 

In these three blogs, we will take you through the developments in the online marketing landscape. In this first blog, we cover, among other things, the role of cookies and what the Digital Marketing Act means.

WHAT IS A COOKIE?

A web cookie, also known as an HTTP cookie, is a small piece of data added to the user's web browser when they visit a particular website. This code is stored in the user's browser for a period of time set by its creators (or until the user deletes it). It can trigger a change between the browser and certain pages on the website.

Examples of what data a cookie may collect include; age, gender, location, browser, device, interests, product category and behaviour on website, search engine and social media.

ONLINE MARKETING AFTER THE DISAPPEARANCE OF THIRD-PARTY COOKIES

That more browsers now disable the third-party cookie by default and consumers are increasingly aware of giving consent is a trend that has been apparent for some time. The most frequently given advice to organisations that rely on cookies for their digital marketing is: work on a first-party data strategy. This is excellent advice, as good first-party data not only makes it easier for you to reach your target audience through digital channels, but is also essential for leveraging future innovative marketing applications in the fields of AI and Machine Learning. After all, such marketing models only work if they are fed with accurate and high-quality data.

In recent years, third-party cookies have fallen out of favour due to privacy rules. Back in 2020, Apple announced to phase out third-party cookies, and browsers like Firefox and Brave are already blocking third-party cookies by default. At the same time, oversight by the Personal Data Authority (AP) and others on cookies and online tracking is tightening, increasing the risk of fines if you don't set this up properly as an organisation.

DIGITAL MARKETS ACT

The Digital Markets Act (DMA) establishes clear and objective criteria to recognise ‘gatekeepers’. Gatekeepers are large digital platforms that provide essential services such as online search engines, app stores and messaging services. These gatekeepers must comply with obligations (do's) and prohibitions (don'ts) set in the DMA.

The DMA is one of the first legislative instruments to regulate the power of large digital companies. Although the DMA supplements EU competition rules, it does not change them; these rules remain in full force.

Thanks to the DMA, users will soon be able to send messages from one messaging service to another. App developers can no longer be forced to use the payment system of app stores, and platforms are not allowed to favour their own products or services, for instance by placing them higher in search results. The DMA also regulates the transfer of personal data from one platform to another and the right to delete pre-installed apps. Moreover, it extends the notification requirement to better assess mergers and acquisitions in the digital economy.

Stricter regulations from the Digital Markets Act (DMA) are creating a requirement for Google to handle its users' privacy better. In recent years, it seemed that Google would also stop supporting the third-party cookie by 2024 or 2025. But instead, the browser leaves the choice to the user to accept or reject third-party cookies. 

In short: more and more third-party cookies are blocked by default in browsers or it is made easier for users to have them blocked themselves in the browser. This will force brands to rethink their marketing strategies and switch to first-party data, which are more reliable and ethical. The Digital Markets Act (DMA) also brings tighter regulation to major digital platforms, bringing more control and transparency to the digital market.