The European Union’s Digital Markets Act (DMA) has fundamentally reshaped how major technology platforms operate across member states. As one of the designated gatekeepers under this landmark regulation, Amazon has embarked on a significant compliance journey that affects its entire advertising ecosystem. Amazon Ads’ Compliance with the DMA introduces stricter transparency, fair competition, and data-use standards across advertising services. This transformation impacts advertisers, publishers, and consumers alike, marking a new era of digital advertising transparency and competition in Europe driven by Amazon Ads’ Compliance initiatives.
Understanding the DMA's Impact on Amazon Ads’ Compliance and Advertising Infrastructure
The Digital Markets Act, which came into force in November 2022 and became applicable in May 2023, targets large digital platforms—termed “gatekeepers”—that play a central role in the digital economy. Amazon, with its vast marketplace and advertising network, falls squarely within this designation, particularly concerning its core platform services and advertising technologies.
For Amazon’s advertising division, DMA compliance isn’t just a legal checkbox—it’s a comprehensive restructuring of how the company manages data, serves ads, and interacts with third-party advertisers and publishers across the European Union. The regulation demands greater transparency, data portability, and fair competition, fundamentally challenging the integrated nature of Amazon’s advertising ecosystem.
Amazon Publisher Services: Adapting to New Compliance Standards
Amazon Publisher Services (APS) has been at the forefront of Amazon’s DMA adaptation strategy. As a suite of cloud-based services designed to help publishers maximize their advertising revenue, APS must now operate under stricter guidelines regarding data usage and competitive neutrality.
Under the DMA framework, Amazon Publisher Services has implemented several key changes:
Data Segregation and Transparency: Publishers using APS now benefit from clearer data handling practices. The DMA prohibits Amazon from combining personal data across different services without explicit consent, meaning data collected through Amazon Publisher Services must be treated distinctly from data gathered through Amazon’s e-commerce platform.
Third-Party Access: The regulation requires Amazon to provide third-party publishers with better access to performance data and analytics. Publishers can now more easily compare the performance of Amazon Publisher Services against competing ad tech solutions, fostering a more competitive environment.
Interoperability Requirements: APS must ensure compatibility with other advertising technologies, preventing lock-in situations where publishers feel compelled to use Amazon’s entire suite of services. This has led to enhanced integration capabilities with non-Amazon demand-side platforms and supply-side platforms.
Amazon DSP: Navigating Programmatic Advertising Compliance
Amazon DSP (Demand-Side Platform) represents one of Amazon’s most powerful advertising tools, allowing advertisers to programmatically purchase display, video, and audio ads both on and off Amazon properties. The DMA’s implications for Amazon DSP are particularly significant given its role in processing vast amounts of advertising data.
The Digital Markets Act compliance journey for Amazon DSP includes:
Self-Preferencing Restrictions: Amazon must ensure that its own advertising inventory isn’t systematically favored over third-party inventory within the DSP. Advertisers using Amazon DSP should have fair access to competitive advertising opportunities across the open internet, not just Amazon-owned properties.
Data Portability: Advertisers can now more easily export their campaign data, audience insights, and performance metrics from Amazon DSP. This enables better multi-platform campaign management and reduces dependency on Amazon’s ecosystem.
Algorithmic Transparency: The DMA pushes for greater clarity about how Amazon DSP’s algorithms rank and display advertising inventory. Advertisers deserve to understand the factors influencing their campaign performance and inventory selection.
Business User Rights: Commercial users of Amazon DSP now have enhanced rights, including clearer terms of service, advance notice of significant changes, and improved recourse mechanisms for dispute resolution.
Key DMA Provisions Affecting Amazon's Advertising Ecosystem
Gatekeeper Obligations
As a designated gatekeeper, Amazon faces specific obligations that directly impact its advertising operations:
Fair Treatment of Business Users: Amazon must provide transparent, fair, and non-discriminatory conditions to advertisers and publishers. This includes clear pricing structures, performance metrics, and access to essential platform features.
Data Access and Portability: Advertisers must have effective access to their own data generated through Amazon’s advertising services. This includes conversion data, audience insights, and campaign performance metrics that traditionally resided within Amazon’s walled garden.
Prohibition on Tying Services: Amazon cannot require advertisers to use Amazon Publisher Services or Amazon DSP exclusively as a condition for accessing other Amazon services or preferential treatment.
Competition and Innovation Impact
The DMA’s compliance requirements are designed to foster innovation and competition in digital advertising:
Ad Tech Independence: Smaller ad tech companies and independent publishers can now compete more effectively with Amazon’s integrated advertising solutions. The requirement for interoperability means advertisers can mix and match solutions based on performance rather than ecosystem lock-in.
Sponsored Products and Sponsored Brands: Amazon’s core advertising products—Sponsored Products, Sponsored Brands, and Sponsored Display—must operate transparently, with clear ranking criteria and fair access for all sellers meeting objective criteria.
Amazon Marketing Cloud: This clean room solution for privacy-safe data collaboration must provide equal access to all eligible advertisers, regardless of their relationship with other Amazon services.
Retail Media Networks and DMA Compliance
Amazon’s retail media network, one of the largest in the world, operates at the intersection of e-commerce and advertising. DMA compliance here involves:
First-Party Data Usage: How Amazon uses its first-party shopping data for advertising purposes must comply with data combination restrictions. Advertisers benefit from Amazon’s unique shopping insights while consumers maintain greater control over how their data flows between services.
Cross-Service Advertising: When Amazon uses insights from its marketplace to inform advertising on third-party websites through Amazon DSP, it must ensure proper consent mechanisms and data transparency.
Performance Transparency: Sellers advertising on Amazon’s marketplace deserve clear information about how their ads perform compared to organic search results and competitors’ ads.
The Role of Amazon Advertising Technology Stack
Beyond Amazon Publisher Services and Amazon DSP, Amazon’s broader advertising technology requires DMA alignment:
Sponsored Advertising: Products like Sponsored Products operate within Amazon’s marketplace and must comply with fairness and transparency requirements regarding auction dynamics and ad placement algorithms.
Amazon Attribution: This measurement solution must provide advertisers with portable data insights they can use across platforms, not just within Amazon’s ecosystem.
Sizmek Ad Suite: Acquired by Amazon, this creative optimization and ad serving technology must maintain interoperability with competitive platforms.
Transparency and Ads Reporting: The DMA drives enhanced reporting capabilities, giving advertisers unprecedented visibility into how their Amazon ad spend translates to business outcomes.
Programmatic Advertising and Header Bidding Considerations
Amazon’s role in programmatic advertising faces DMA scrutiny:
Unified Ad Marketplace (UAM): Amazon’s header bidding solution must operate fairly, providing equal opportunity for demand partners to compete for publisher inventory.
Supply-Side Platform (SSP) Competition: Publishers should have genuine choice in which SSPs to work with, without penalties for not exclusively using Amazon’s solutions.
Real-Time Bidding (RTB): Transparency in RTB processes helps advertisers understand the value exchange in programmatic transactions.
Privacy, GDPR, and DMA Convergence
The DMA doesn’t exist in isolation—it works alongside the General Data Protection Regulation (GDPR) to shape Amazon’s advertising practices:
Consent Management: Amazon must obtain proper consent for data processing across its advertising services, respecting user choices about personalized advertising.
Data Minimization: Amazon’s advertising targeting must balance effectiveness with privacy, collecting only necessary data for legitimate advertising purposes.
Cross-Border Data Flows: For Amazon’s global advertising operations, EU compliance requires careful management of how European user data flows to non-EU systems.
Impact on Advertisers: Opportunities and Challenges
For businesses advertising through Amazon’s ecosystem, DMA compliance brings mixed implications:
Opportunities
Greater Flexibility: Advertisers can more easily test competitive platforms against Amazon solutions, driving down costs through genuine competition.
Better Data Control: Enhanced data portability means proprietary customer insights aren’t trapped within Amazon’s system.
Clearer Performance Metrics: Transparency requirements lead to better understanding of campaign ROI and advertising efficiency.
Challenges
Complexity: Operating across multiple platforms rather than relying on Amazon’s integrated ecosystem requires more sophisticated management.
Transition Period: As Amazon implements DMA changes, advertisers may experience temporary disruptions or feature changes.
Learning Curve: New interfaces, reporting structures, and compliance processes require advertiser education and adaptation.
The Future of Amazon Advertising in a DMA-Compliant World
Looking ahead, several trends will shape Amazon’s advertising evolution under DMA compliance:
Increased Modularization: Amazon’s advertising products will likely become more modular, allowing advertisers to pick specific capabilities rather than committing to entire suites.
Enhanced APIs: Greater programmatic access to Amazon’s advertising capabilities will emerge, enabling third-party tools to integrate more seamlessly.
Competitive Pressure: As the DMA levels the playing field, Amazon will need to compete on product quality and innovation rather than ecosystem lock-in.
Industry Standards: Amazon may play a role in developing industry-wide standards for advertising transparency and data portability that extend beyond EU borders.
Best Practices for Navigating Amazon Ads Under DMA
For advertisers and publishers working within Amazon’s advertising ecosystem post-DMA, consider these strategies:
Audit Your Data: Understand what data you’re generating on Amazon platforms and exercise your portability rights to maintain competitive insights.
Diversify Your Stack: Don’t rely exclusively on Amazon Publisher Services or Amazon DSP—test competitive solutions to ensure you’re getting optimal performance.
Stay Informed: DMA compliance is evolving, with ongoing guidance from the European Commission. Subscribe to Amazon’s advertiser updates and industry news.
Document Everything: Maintain records of your advertising agreements, performance data, and any issues you encounter for potential dispute resolution.
Leverage Transparency: Use newly available performance data and algorithmic insights to optimize your campaigns more effectively.
Enforcement and Ongoing Compliance Monitoring
The European Commission actively monitors gatekeeper compliance with DMA obligations:
Regular Reporting: Amazon must submit compliance reports demonstrating how it meets DMA requirements across its advertising services.
Penalties for Non-Compliance: Violations can result in fines up to 10% of global annual turnover, with repeated violations carrying even steeper penalties.
Market Investigations: The Commission can launch investigations into specific practices if it suspects Amazon isn’t meeting its DMA obligations.
Conclusion: A New Era for Digital Advertising
Amazon’s DMA compliance journey represents more than regulatory adherence—it signals a fundamental shift in how major platforms approach digital advertising in Europe and potentially globally. For Amazon Publisher Services, Amazon DSP, and the broader Amazon advertising ecosystem, the DMA creates both constraints and opportunities.
Advertisers and publishers benefit from increased transparency, better data control, and genuine competitive options. While the transition requires adaptation, the long-term result should be a healthier, more innovative digital advertising marketplace where Amazon competes on the merits of its technology and services rather than the scale of its ecosystem.
As the DMA matures and enforcement actions provide clearer guidance, Amazon’s advertising platform will continue evolving. The companies that thrive in this new environment will be those that embrace transparency, respect user privacy, and build advertising solutions that deliver genuine value rather than relying on platform lock-in.
The Digital Markets Act isn’t the end of Amazon’s advertising dominance—but it does mark the beginning of a more equitable and competitive digital advertising landscape in the European Union, with implications that will likely ripple across global markets in the years to come.
