According to Piwik PRO, a European leader in privacy-focused analytics solutions, several elements of the EU’s proposed Digital Omnibus regulation could accelerate the shift toward privacy-friendly analytics and reduce reliance on US vendors. This could shift the balance of power in the European digital analytics market, which is expected to triple in value to $4.68 billion by 2031.
“Digital analytics is crucial for running, improving, and growing businesses by helping understand what is happening on their websites. Simplifying procedures for monitoring website traffic will enable companies to collect and analyze user data more effectively while remaining compliant”.
Mateusz Krempa, CCXO at Piwik PRO and Cookie Information.
A new option for first-party analytics without consent
This option is available only when strict technical and legal conditions are met. First, the analytics must be processed in a first-party setup, meaning the website owner controls all analytics data. Second, there can be no third-party data sharing: the data must stay between the website owner and the analytics provider. Third, the processing must be limited to statistics only, so the data is used solely for basic website statistics and improvements. Fourth, users must have an easy opt-out and be able to opt out of analytics at any time. Finally, retention must be short: analytics data can be stored only as long as needed for statistical purposes.
Consent would no longer be required when organizations proceed with first-party analytics under legitimate interest for basic web statistics, for website optimization, and for aggregate reporting, provided this is done without individual user tracking for marketing purposes.
“This approach enables organizations to perform essential audience measurement and statistical analysis of marketing effectiveness while making it easier for users to use the websites by eliminating the need to click the cookie banner each time”
Mateusz Krempa, CCXO at Piwik PRO and Cookie Information.
A major opportunity for European vendors and businesses
Under Article 88a, analytics providers must operate solely on behalf of the controller. European first-party analytics vendors can typically meet these requirements. However, they are generally not met by large advertising-driven platforms such as Google Analytics due to their shared global infrastructure, their reuse of aggregated customer data for product development, and their tight integration with advertising ecosystems.
This does not mean that big tech solutions will be excluded. However, the distinction will be the ability to analyze data in accordance with Article 88a; otherwise, the consent mechanism will continue to apply.
In my opinion, this will give privacy-friendly European analytics providers an edge compared to US-based platforms. There is still a long way to go, but this draft signals real change in how websites may analyze their online presence in the future.
Mateusz Krempa, CCXO at Piwik PRO and Cookie Information.
First step towards transformation
European vendors capable of meeting these requirements may see increased demand as organizations seek privacy-first, controller-only solutions aligned with the upcoming regulatory environment.