European network operators want to set up a joint venture to operate a platform for digital advertising. It's an attempt to compete with the American tech companies – most notably Google and Meta – that dominate the online advertising market.
The network operators are Deutsche Telekom, Orange, Telefónica and Vodafone. They each have a 25 percent stake in the new joint venture, which is to be based in Belgium. The EU Commission has now approved the foundation.
Cookie successor in progress
The network operators want to work closely with advertisers and publishers on the project. Vodafone completed a pilot project in Germany last year in the networks of Vodafone and Deutsche Telekom, online publishers and advertisers were already involved. Further test runs are to follow, potential locations are France and Spain.
In principle, the platform is intended to provide a successor to cookies. Technically, this is done using a pseudonymised token that advertisers should not be able to trace back. As Golem reports, the token generation in the test run last year was based on the mobile phone number of the user and the IP address. An ID is formed from this data using a hash process.
The concept should be GDPR-compliant. Advertisers only receive a token if the users agree. The advertising can then be played out via the websites of publishers and portals. Users should remain in control. They can give or revoke consent at any time “either on the brand's or publisher's website or via a central, easily accessible data protection portal”.
The new joint venture intends to present further information on strategy and technology as well as commercial use “in due course”.
Competition with the tech-groups
The technical platform is open to other network operators in Europe. The goal is clear: they want to tap into part of the proceeds from the lucrative online advertising market. For years, European network operators have been complaining that they have to bear the high investments in the networks, while the tech companies are bringing in billions in sales.
There are also other approaches that European network operators are pursuing in competition with tech companies. Because services such as Netflix, YouTube or Instagram cause a large part of the data volume consumed, they should pay fees to the network operators in the future.
For a long time, the idea did not find political acceptance. It is criticized that the project violates net neutrality. In addition, the services of the tech companies would be one of the reasons why people book fast – and therefore expensive – internet access at all.
At least the EU Commission has apparently changed its mind. Despite widespread criticism, this wants to introduce a corresponding draft law, reports Netzpolitik.org. An open consultation is scheduled to start in February.