EU’s Cookie Pledge stalls
The European Commission’s attempt to implement a “Cookie Pledge” initiative, allowing Big Tech companies to voluntarily commit to practices enhancing consumer choices in tracking-based advertising, has encountered significant challenges.
Despite Commissioner Didier Reynders’ proposal during the 2023 Consumer Summit to address tracking issues and “pay or consent” policies through a voluntary pledge, the subject was not discussed at the recent summit due to concerns raised by stakeholders. Many involved parties deemed a voluntary approach premature, given the recent implementation of new legislation like the Digital Services Act (DSA) and the Digital Markets Act (DMA).
Roundtable discussions held in April and December 2023 aimed to bring together various stakeholders, including tech giants Google, Meta, and Microsoft, trade associations, shopping platforms, and privacy advocates, to establish a unified approach towards digital advertising practices. However, these discussions reached an impasse as stakeholders failed to agree on effective strategies to tackle tracking issues, leading to dwindling interest in the voluntary commitment from all sides. Companies hesitated to sign the pledge due to their reliance on data harvesting for revenue and concerns about potential conflicts with existing legislation.
Fernando Hortal Foronda, a Digital Policy Officer at the European Consumer Organisation (BEUC), expressed disappointment over the apparent failure of the Cookie Pledge initiative, emphasizing consumers’ frustration with excessive cookie banners. He highlighted the need for legislative action to ensure companies respect individuals’ privacy rights. An EU source suggested that revising consumer data regulations to include mandatory conditions could address these challenges. Furthermore, the European Data Protection Board raised concerns about “consent or pay” models, emphasizing the importance of allowing users to make informed choices regarding their data, which is currently lacking in many platforms. The Commission’s investigation into Meta’s consent models further underscores the urgency of enhancing consumer data protection measures.
Source: Intended highlight of the 2024 Consumer Summit was completely omitted.
