Chapter 3|Additional Obligations for Very Large Platforms|📖 8 min read
1. The Commission shall encourage and facilitate the drawing up of voluntary codes of conduct at Union level between providers of online platforms, providers of online advertising intermediary services, organisations representing recipients of the service, organisations representing providers of online advertising, civil society organisations and other relevant parties, to contribute to further transparency beyond the requirements of Articles 26 and 39, including through the exchange of information with advertising repositories pursuant to Article 39 on the real-time data streams and the algorithms used in the selection and presentation of advertising to individual recipients of the service, in particular in order to contribute to a competitive, transparent and fair environment in online advertising.
2. The Commission shall aim to ensure that those codes of conduct pursue the transmission of information that fully respects the rights and interests of all parties involved, as well as a competitive, transparent and fair environment in online advertising. The Commission shall aim to ensure that those codes of conduct address, in particular:
(a) the transmission of information to recipients of the service and, where relevant, to the repositories pursuant to Article 39, from providers of online advertising intermediary services;
(b) the transmission of information to the repositories pursuant to Article 39 from providers of online advertising;
(c) the presentation of meaningful information on the monetisation of recipients' data through online advertising.
3. The Commission shall encourage the development of those codes of conduct by 18 February 2025 and their application by 18 August 2025.
Understanding This Article
Article 46 creates specialized code of conduct mechanism for online advertising ecosystem, recognizing advertising's unique complexity and systemic nature requiring coordination across entire value chain, not just platforms. While Article 26 requires platforms to provide users advertising transparency and Articles 39/41 require VLOPs to provide enhanced transparency, Article 46 addresses broader ecosystem challenges requiring industry-wide coordination: supply chain transparency (how ads travel from advertiser through multiple intermediaries to final placement), targeting parameter standardization (enabling user understanding across platforms), verification systems (ensuring ad displayed where claimed), fraud prevention (coordinating against sophisticated fraud operations), brand safety (protecting advertisers from association with harmful content).
Commission's mandatory facilitation role ('shall encourage and facilitate' versus Article 45's 'may') reflects advertising's importance to DSA objectives and Commission's determination that industry coordination essential for effective transparency. Commission must actively work toward code development, not merely allow it if industry initiates. Specific deadlines - development by February 18, 2025 and application by August 18, 2025 - create urgency and accountability. These deadlines have now passed (as of late 2025), with codes in various stages of implementation though not yet fully achieving comprehensive coverage envisioned.
Codes' scope encompasses 'all parties involved in online advertising' creating obligations across value chain: Platforms displaying ads (VLOPs and others) must participate in transparency standards; Advertisers purchasing ads should verify identity, ensure legal compliance, accept transparency obligations; Ad tech intermediaries (demand-side platforms, supply-side platforms, ad exchanges, data brokers, verification services) must participate in supply chain transparency enabling ad traceability; Publishers hosting ads coordinate on transparency standards ensuring consistent user experience. This horizontal approach recognizes online advertising operates through complex ecosystem where single-company action insufficient - systematic transparency requires all participants' cooperation.
Codes should pursue 'competitive, transparent and fair environment' balancing multiple objectives: Competition - codes must not facilitate anti-competitive coordination (price-fixing, market allocation, boycotts). Article 46 explicitly requires codes align with 'Union and national law, in particular on competition,' meaning competition authorities scrutinize codes for anti-competitive provisions. Codes should enable competition through transparency (allowing advertisers to compare platforms, evaluate effectiveness) while avoiding coordination reducing competition. Transparency - codes enhance transparency throughout value chain: advertisers know where ads appear, users understand ad targeting, regulators can monitor ecosystem. This addresses current opacity where ads pass through multiple intermediaries with limited traceability. Fairness - codes should ensure fair dealing among participants: preventing fraud, enabling verification, establishing clear terms, protecting smaller participants from exploitation by dominant players. Fair environment includes user protection ensuring advertising respects privacy, avoids manipulation, enables informed choices.
Paragraph 2's requirement that codes 'aim to ensure that codes of conduct pursue an effective transmission of information that fully respects the rights and interests of all parties involved' creates multi-stakeholder obligation. Codes cannot simply serve platform or advertiser interests but must respect: Users' rights (privacy, transparency, informed choice), Advertisers' rights (verification, brand safety, fraud protection, performance measurement), Intermediaries' rights (fair terms, non-discriminatory access), Publishers' rights (control over monetization, brand safety), Regulators' interests (oversight, compliance verification), Public interest (democratic discourse, consumer protection, competition). Balancing these competing interests requires careful negotiation and compromise.
Codes complement legal obligations adding detail, industry practices, and ecosystem coordination. Legal obligations (Articles 26, 39, 41) establish minimum requirements; codes can go further providing: Detailed specifications of how to implement legal requirements, Industry best practices exceeding legal minimums, Coordination mechanisms enabling cross-company cooperation, Measurement methodologies establishing common metrics, Verification procedures ensuring compliance, Dispute resolution processes addressing conflicts. This layered approach - binding law setting floor, voluntary codes raising standards - reflects modern co-regulatory philosophy.
Key Points
Commission shall encourage and facilitate voluntary codes of conduct for advertising transparency (mandatory facilitation unlike Article 45's discretionary approach)
Codes must address competitive, transparent, and fair environment in online advertising ecosystem
Covers entire online advertising value chain: platforms, advertisers, ad tech intermediaries, publishers
Codes should ensure effective information transmission respecting all parties' rights and interests
Commission encouraged development by February 18, 2025 and application by August 18, 2025 (now passed)
Complements Article 26 individual ad transparency and Article 39/41 VLOP advertising transparency requirements
Codes should align with Union and national law particularly competition law and privacy/data protection
Industry associations like IAB Europe leading development covering ad labels, targeting parameters, data flows
Codes aim to combat ad fraud, ensure brand safety, enable advertiser verification, improve user understanding
Practical Application
For IAB Europe and Advertising Industry (Developing Comprehensive Codes): IAB Europe (Interactive Advertising Bureau Europe) leads online advertising code development under Commission facilitation. Implementation: (1) Code development process: Convene working groups with platforms, advertisers, agencies, ad tech companies, publishers, civil society; Identify priority transparency areas (ad labeling, targeting parameters disclosure, supply chain transparency, verification, fraud prevention); Draft detailed specifications for each area; Public consultation gathering feedback from broader stakeholder community; Finalize codes and secure sign-on from major participants; Publish codes and implementation guidance. (2) Key code elements developed or in development: Ad labeling standards specifying how ads should be visually distinguished from organic content across platforms; Targeting parameters standardization establishing common taxonomy for interest-based targeting, demographic targeting, behavioral targeting enabling users to understand targeting across platforms; Supply chain transparency protocols enabling ad traceability from advertiser through intermediaries to final placement; Brand safety standards defining categories of content advertisers may wish to avoid, mechanisms for advertiser control; Viewability and verification standards establishing metrics and measurement methodologies; Data usage transparency specifying what user data is collected, how it's used in targeting, user controls. (3) Implementation challenges: Achieving participation across fragmented ecosystem (thousands of companies in advertising value chain), Balancing transparency with commercial confidentiality (advertisers resist revealing complete strategies), Technical complexity of standardizing across diverse platforms and technologies, Enforcement mechanisms for voluntary codes (relying on reputation, public pressure, potential regulatory consequences), International coordination (advertising markets global requiring coordination beyond EU). (4) Ongoing evolution: Monitor implementation tracking adoption and compliance, Gather feedback identifying gaps and issues, Update codes reflecting technological evolution (AI-driven targeting, new ad formats, emerging platforms), Coordinate with regulators ensuring codes align with regulatory expectations.
For Platforms (Implementing Advertising Codes and Integration with DSA Obligations): Platforms participating in Article 46 codes must integrate code requirements with legal obligations. Implementation: (1) Gap analysis: Compare code requirements with current practices, Identify needed changes to ad labeling, targeting disclosure, supply chain participation, verification cooperation; Assess resource requirements for implementation; Prioritize changes based on impact and feasibility. (2) Technical implementation: Ad labeling systems ensuring all advertisements clearly identified with standardized visual indicators, Targeting transparency interfaces showing users which targeting parameters led to specific ad display in standardized formats, Supply chain integration implementing protocols enabling ad traceability through programmatic ecosystem, API development for verification services enabling third-party measurement, Fraud prevention systems participating in industry-wide fraud detection networks. (3) Policy updates: Terms of service for advertisers incorporating code requirements, Prohibitions on certain practices (e.g., targeting minors with age-inappropriate products), Enforcement procedures for advertiser violations, Transparency reporting incorporating code-specified metrics. (4) Cross-functional coordination: Engineering teams implement technical requirements, Policy teams develop policies and guidelines, Ad operations teams enforce advertiser compliance, Legal teams ensure alignment with competition law and privacy law, Communications teams explain changes to advertisers and users. (5) Continuous compliance: Participate in monitoring frameworks providing data on implementation, Submit to verification audits where applicable, Address identified gaps or non-compliance, Engage in code evolution contributing to updates. Example: Google implementing advertising codes across Search, YouTube, Display Network requires: Standardized ad labels across all services, Unified targeting transparency showing users why they saw ads, Integration with industry verification services (IAS, DoubleVerify, Moat), Participation in fraud prevention consortiums, Transparency reporting on code compliance.
For Advertisers (Navigating Enhanced Transparency Requirements): Advertisers face new transparency obligations and opportunities from codes: (1) Verification obligations: Codes may require advertiser identity verification, Authorization documentation, Compliance with advertising policies, Transparent disclosure of sponsorship. Advertisers must maintain: Company registration documents, Authorization from brands (if agency/intermediary), Compliance documentation, Payment verification. (2) Targeting limitations and transparency: Codes may restrict certain targeting (e.g., minors, sensitive categories), Require targeting transparency (disclosing what parameters used), Prohibit discriminatory targeting. Advertisers must: Audit targeting practices ensuring compliance, Implement systems preventing prohibited targeting, Prepare for public disclosure of targeting approaches. (3) Brand safety participation: Codes establish brand safety standards enabling advertiser control over content context. Advertisers should: Define brand safety preferences, Use verification services monitoring ad placement, Report problematic placements, Participate in industry safety initiatives. (4) Measurement and verification: Codes enable improved measurement through standardization. Advertisers can: Use standardized metrics comparing cross-platform performance, Require third-party verification reducing fraud, Access enhanced transparency data understanding campaign effectiveness. (5) Competitive advantages: Early adoption of code standards can create competitive advantages: Preferential platform treatment for compliant advertisers, Consumer trust from transparency, Regulatory safety demonstrating good faith compliance, Industry leadership shaping standards.