Home Online Advertising The Legality Of RTB In Europe Has Been Settled, And Nobody’s A Winner

The Legality Of RTB In Europe Has Been Settled, And Nobody’s A Winner

SHARE:

At long last the most prominent GDPR case targeting the legal standing of the IAB Europe’s Transparency & Consent Framework (TCF) has been settled. A Belgian appeals court has ruled on how ad tech vendors, publishers and advertisers can continue to use programmatic advertising in Europe.

“Well, here we are,” IAB Europe CEO Towney Feehan told AdExchanger, with a long sigh that conveyed both exasperation and relief. “This is really it.”

The new ruling as of Wednesday affirmed that the IAB Europe is indeed a joint data controller for the TCF standards. The ruling also confirms that TC Strings, the IDs used to convey permission to use data for ad targeting (i.e. all those pop-up consent notifications Europe is notorious for), constitute personal data. And the court affirmed a prior fine of 250,000 euros to be paid by IAB Europe.

The background

To give some context to all that hardcore jargon: In 2022, the Belgian data protection authority (DPA) ruled that the IAB Europe is a joint data controller for the TCF, and that the framework was illegal. This was a far-reaching thunderbolt. Never in years of discussions with regulators regarding the TCF had the notion of the IAB Europe as a data controller ever come up, Feehan said.

But the IAB Europe appealed the Belgian DPA’s decision, and that appeal was punted up to the EU high court to determine the definitions for the case.

In its decision last year, The EU Court of Justice, as it’s known, gave a far more limited interpretation of the IAB Europe’s controllership. And the Belgian court this week reaffirmed that decision, annulling the previous broader definition of joint data controllership set by the Belgian DPA

In essence, under the narrower ruling adopted by the Belgian court this week, the IAB Europe must itself gain consent in order to host the TCF on behalf of a programmatic impression. Typically, a number of vendors – any ad tech vendor or data supplier in the chain – are required to gain consent in order to run targeted ads.

Google benefitted by this arrangement, because under GDPR its ad tech often requires consent only for Google to use data. For European ad impressions served and bid on by open programmatic companies, a dozen or more vendors might all require permission, and people are more reticent to share data with companies they’ve never heard of.

Now, to run ad targeting in Europe through the IAB OpenRTB protocols, Feehan said that the IAB Europe itself must be among those vendors granted permission for collecting or using data. “Which is manageable from a liability perspective,” she said.

“For us the scary thing was, against all common sense, that we’d be found to be a joint controller for all the processing purposes,” she said.

What’s next?

Should publishers or ad tech companies using the current TCF feel any qualms about the decision?

No, according to Feehan.

The IAB Europe has a few months to update members and include itself as one of the vendors required to gain consent when a pop-up notification requests permission to use data for ad purposes.

She also said that the ruling pertained only to a prior version of the TCF, which has been updated as of 2023.

The TC Strings are ruled as personal data under GDPR. “We’d contest that point but we’ve argued our socks off for years,” Feehan added.

That means the data can’t be incorporated into data profiles for cross-web tracking, for instance. But some of the updates to the TCF, which were accepted by the Belgian DPA back in 2022, included more forceful and explicit terms and conditions for vendors that participate. They’re required to provide access to their consent logs for audits at any point without “undue delay,” for instance.

Otherwise, “the impact on the market is negligible,” Feehan said. Vendors or publishers using the TCF version need change nothing, she said. The claimants in the case and other EU advocates crowing that the TCF is now a potential risk for anyone that runs data-driven advertising in Europe notwithstanding. The original ruling by the Belgian DPA, which declared the TCF illegal and determined the IAB Europe a joint data controller for all activity using the TC Strings, was nullified.

“It is not illegal,” she said. “It’s legal.”

Must Read

How Warner Bros. Discovery Is Creating Value Out Of Dead Air With Pause Ads

Streaming publishers are banking on pause ads to bolster revenue with a more user-friendly ad experience. With programmatic standardization still pending, Warner Bros. Discovery is taking a stab at advancing the capabilities behind its own pause ad formats.

Peacock Hits Profitability As Comcast Prepares To Spin Off NBCU

Peacock hit what Comcast Co-CEO Mike Cavanagh called “meaningful profitability” for the first time in Q2, just as Comcast decided to let it leave the nest. 

Comic: It's Coming For You

Programmatic Platforms Champion Transparency, But Not If It Means Giving Activists Access

A DSP refused to give ad industry watchdog Check My Ads a seat on its platform, even after both parties cosigned a master service agreement, citing concerns about “protections” for “vendor and supply partners.”

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Alphabet Smashes Ad Revenue Earnings Again – But Does It Still Care About Ads?

Investors didn’t bring up Google’s advertising business or ads in general once during the Q&A portion of Alphabet’s earnings report call on Wednesday.

Podcast concept illustration. Female radio host interviewing guests on radio station. Podcast in studio flat vector illustration. Man and woman in headphones talking. Vector in flat style

Comscore Wants To Make Buying Podcast Ads Feel More Like Buying CTV Or Display

Comscore is adding Spotify, SiriusXM, Triton Digital, Acast and Libysn to its Proximic targeting solution to build brand-safe, contextual audiences for omnichannel campaigns.

Amazon

Sellers Are Fed Up With Amazon, But Can They Force Change?

Million Dollar Sellers, or “MDS,” is a group of Amazon sellers and specialists. And they’ve had it with Amazon’s advertiser and seller squeeze. But can they do anything about it?