Discourse in Advance of the European Parliament's Full Assembly Vote on the Digital Services Legislation
The European Parliament is set to vote on a series of amendments to the Digital Services Act (DSA) on Thursday, raising concerns about its potential impact on publishers and the EU's digital economy.
One of the key issues at hand is the regulation of the "informed consent" process for advertising, which could bureaucratize website designs and conflict with existing GDPR rules. Some amendments aim to impose stricter consent mechanisms on online platforms, including publishers, to protect user privacy, safety, and data security.
According to the Center for Data Innovation, efforts to regulate the "informed consent" process undermine publishers' right to independently obtain consent from their users for advertising purposes. The core fact remains that targeted advertising is a safe and effective tool for advertisers, publishers, and users alike, generating €16b in income per year for European media companies and app developers.
The DSA, particularly under Article 28 and its associated guidelines issued in mid-2025, imposes strict obligations on online platforms to implement proportionate and robust consent mechanisms. Consent processes must be non-intrusive, non-discriminatory, and understandable, with particular emphasis on minors. This likely increases the administrative and technical complexity for publishers in compliance and user experience design.
For the broader EU digital economy, this regulatory environment could limit profiling-based targeted advertising, especially on platforms accessible to minors or involving sensitive personal data. Platforms may face joint liability for non-compliance with consent rules, increasing the risk profile and possibly deterring certain data collection or targeting practices.
The DSA’s requirements could reshape data acquisition and consent management frameworks across digital services, requiring robust verification, record-keeping, and transparency mechanisms. This could increase compliance costs for publishers but may foster greater user trust and data protection standards in the EU market.
Mandating platforms to not disable functionalities for users who refuse consent could attack the business model of many publishers who rely on marketing income. Some lawmakers have attempted to include a blanket ban on targeted advertising in the DSA, but it's important to remember the benefits of targeted advertising for businesses, consumers, and the economy as a whole.
Privacy activists often ignore the fact that targeted digital ads are the most effective low-cost marketing tool for businesses using online marketing. Targeted ads allow small and medium-sized enterprises (SMEs) and start-ups to advertise to new audiences that have previously expressed interest in their products or services. Personalized ads are more relevant to users and likelier to generate new business that supports growth for companies.
In summary, the DSA’s informed consent provisions push publishers to adopt stricter, transparent, and child-protective consent processes. These regulations aim to enhance user safety and privacy but may increase compliance complexity and operational costs for publishers within the EU digital economy. The European Parliament must be cautious not to vote for legislation that could negatively impact the EU's digital economy.
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