{"id":27358,"date":"2024-06-24T01:36:01","date_gmt":"2024-06-24T08:36:01","guid":{"rendered":"https:\/\/www.privateinternetaccess.com\/blog\/?p=27358"},"modified":"2024-06-24T01:36:03","modified_gmt":"2024-06-24T08:36:03","slug":"eu-court-ruling-impossible-use-real-time-ad-bidding","status":"publish","type":"post","link":"https:\/\/www.privateinternetaccess.com\/blog\/eu-court-ruling-impossible-use-real-time-ad-bidding\/","title":{"rendered":"Top EU Court Ruling Means It May Be Legally Impossible to Use Real-Time Bidding for Ads"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Back in 2020, we wrote about a report by Johnny Ryan and the Irish Council for Civil Liberties that claimed over <a href=\"https:\/\/www.privateinternetaccess.com\/blog\/web-sites-shared-over-100-trillion-pieces-of-our-personal-data-last-year-time-to-stop-real-time-biddings-blatant-disregard-of-privacy\/\">100 trillion pieces of personal data<\/a> were being exchanged online each year for use in micro-targeted advertising under the <a href=\"https:\/\/www.privateinternetaccess.com\/blog\/?s=real-time+bidding\">Real Time Bidding<\/a> (RTB) system. <a href=\"https:\/\/curia.europa.eu\/jcms\/upload\/docs\/application\/pdf\/2024-03\/cp240044en.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">A new ruling<\/a> from the Court of Justice of the European Union (CJEU) will finally see courts examine whether RTB is fully compliant with the EU\u2019s GDPR legislation. At the very least, RTB is likely to change in key ways \u2013 and it may even turn out that the system is fundamentally incompatible with EU privacy law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under RTB, in the few hundredths of a second after you click a link to visit most sites, blank advertising slots are put up for an automated auction among potential advertisers. In addition to information about the site and ad space, reams of personal information are also shared with potential bidders. To help site owners and adtech companies comply with GDPR, the digital advertising group IAB Europe drew up its <a href=\"https:\/\/iabeurope.eu\/transparency-consent-framework\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Transparency and Consent Framework<\/a> (TCF), \u201can accountability tool that relies on standardisation to facilitate compliance with certain provisions of the [EU\u2019s] ePrivacy Directive and the GDPR.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The application of the TCF has contributed to the routine use of \u201cconsent\u201d popups on sites. They inform visitors about where personal data will be sent and gather consent for third-party use. Users\u2019 preferences are stored in a special set of characters known as the Transparency and Consent String (TC String), and a cookie is placed on the user\u2019s system. Importantly, the TC String and the cookie can be linked to the user\u2019s IP address.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we discussed in November 2021, the Belgian data protection authority issued a draft ruling identifying <a href=\"https:\/\/www.privateinternetaccess.com\/blog\/belgium-gdpr-superpower-about-to-rule-leading-ad-tracking-framework-is-illegal\/\">alleged infringements of GDPR<\/a> by IAB Europe as a result of the way the TCF is used by the adtech industry. IAB Europe appealed against the final ruling of the Belgian data protection authority. The evident importance of the case led the Belgian Market Court, part of the Brussels Court of Appeal, to make a referral in September 2022 to the EU court asking for clarification of key issues. The CJEU has now issued its <a href=\"https:\/\/curia.europa.eu\/jcms\/upload\/docs\/application\/pdf\/2024-03\/cp240044en.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">ruling<\/a> regarding the \u201cauctioning of personal data for advertising purposes.\u201d There are two elements:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cIn its judgment, the Court of Justice confirms that the TC String contains information concerning an identifiable user and therefore constitutes personal data within the meaning of the GDPR. Where the information contained in a TC String is associated with an identifier, such as, inter alia, the IP address of the user\u2019s device, that information may make it possible to create a profile of that user and to identify him or her.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Furthermore, IAB Europe must be regarded as a \u2018joint controller\u2019 within the meaning of the GDPR. Subject to the verifications which are for the referring court to carry out, that association appears to exert influence over data processing operations when the consent preferences of users are recorded in a TC String, and to determine, jointly with its members, both the purposes of those operations and the means behind them.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These rather technical issues might not seem particularly important at a first glance. An analysis from three academics immediately after the Belgian data authority\u2019s final ruling on the TCF explained that assuming the ruling would be upheld \u2013 which has now happened \u2013 <a href=\"https:\/\/techreg.org\/article\/view\/11594\/13212\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">the impact would be dramatic<\/a>:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCharacterising IAB Europe as a joint controller with RTB actors, the Belgian decision gives DPAs [Data Protection Authorities] an agreed-upon blueprint to deal with a structurally difficult enforcement challenge. Furthermore, under the DPA\u2019s simple-looking remedial orders are deep technical and organisational tensions. We analyse these \u201cimpossible asks\u201d, concluding that absent a fundamental change to RTB, IAB Europe will be unable to adapt the TCF to bring RTB into compliance with the decision.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-this-mean-for-real-time-bidding\"><strong>What Does This Mean for Real-Time Bidding?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the issues with applying GDPR to real-time bidding is that each actor in the RTB system has tried to claim that a different part of the system was responsible for GDPR compliance. This vagueness made it hard for data protection authorities to decide who they should bring GDPR enforcement actions against. The CJEU\u2019s confirmation of the Belgian DPA analysis that more or less everyone involved in the RTB system must comply with the GDPR hands EU DPAs a powerful weapon for future enforcement actions against all players in the RTB world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second issue identified by the CJEU is perhaps even more far reaching. In its 2022 decision, the Belgian DPA gave IAB Europe a chance to fix the privacy problems it had identified. As the academics put it: \u201cmuch of what the Belgian DPA asks ranges from structurally challenging to impossible without rethinking how RTB itself works.\u201d At the very least, this probably means that \u201cconsent\u201d popups will have to go. More profoundly, the CJEU ruling could mean the RTB system cannot be made fully legal in the EU, and would have to be dropped there. This would have major repercussions on digital adtech around the world. If RTB is no longer an option, the obvious alternative is <a href=\"https:\/\/www.privateinternetaccess.com\/blog\/?s=contextual+advertising\">contextual advertising<\/a>, as more and more people are now advocating.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Back in 2020, we wrote about a report by Johnny Ryan and the Irish Council for Civil Liberties that claimed over 100 trillion pieces of personal data were being exchanged online each year for use in micro-targeted advertising under the Real Time Bidding (RTB) system. A new ruling from the Court of Justice of the &hellip; <a href=\"https:\/\/www.privateinternetaccess.com\/blog\/eu-court-ruling-impossible-use-real-time-ad-bidding\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Top EU Court Ruling Means It May Be Legally Impossible to Use Real-Time Bidding for Ads&#8221;<\/span><\/a><\/p>\n","protected":false},"author":20,"featured_media":27359,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","footnotes":""},"categories":[1792],"tags":[],"class_list":["post-27358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-privacy-news-online"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Top EU Court Ruling Means It May Be Legally Impossible to Use 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Moody","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.privateinternetaccess.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/220b7317aa40ea679b23b79c368761eb6fd45039d978354b06dc7683a812d2fc?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/220b7317aa40ea679b23b79c368761eb6fd45039d978354b06dc7683a812d2fc?s=96&d=mm&r=g","caption":"Glyn Moody"},"description":"Glyn Moody is a freelance journalist who writes and speaks about privacy, surveillance, digital rights, open source, copyright, patents and general policy issues involving digital technology. He started covering the business use of the Internet in 1994, and wrote the first mainstream feature about Linux, which appeared in Wired in August 1997. His book, \"Rebel Code,\" is the first and only detailed history of the rise of open source, while his subsequent work, \"The Digital Code of Life,\" explores bioinformatics - the intersection of computing with genomics.","sameAs":["http:\/\/opendotdotdot.blogspot.com\/","https:\/\/www.linkedin.com\/in\/glynmoody\/","https:\/\/x.com\/http:\/\/twitter.com\/glynmoody"],"url":"https:\/\/www.privateinternetaccess.com\/blog\/author\/glynmoody\/"}]}},"_links":{"self":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/27358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/comments?post=27358"}],"version-history":[{"count":2,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/27358\/revisions"}],"predecessor-version":[{"id":27361,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/27358\/revisions\/27361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/media\/27359"}],"wp:attachment":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/media?parent=27358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/categories?post=27358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/tags?post=27358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}