Date:
April 05, 2024
The US government is taking a new step to limit ad monopolies by introducing the AMERICA Act. The bill aims to break up the ad businesses of tech giants such as Google and Meta.
The US government is taking a new step to limit online ad monopolies by introducing a bipartisan bill called the AMERICA Act (Advertising Middlemen Endangering Rigorous Internet Competition Accountability).
The bill aims to break up the ad businesses of tech giants such as Google and Meta. Companies that handle over $20 billion in transactions wouldn't be allowed to own both an ad exchange and a demand- or supply-side platform, while those buying and selling ads couldn't own either of the other platforms except to sell their ad stock.
The bill also requires companies that handle over $5 billion in transactions to ensure the "best execution" for ad bids and to be transparent in providing fair access to technical capabilities and data. Senators sponsoring the bill, including Mike Lee, Amy Klobuchar, Ted Cruz, and Elizabeth Warren, among others, expect Google and Meta to divest "significant portions" of their ad businesses to comply with the law.
The sponsors also note that Amazon and Apple might have to take the AMERICA Act into account. The bill would deal a significant financial blow, as Google and Meta rely on ad sales as their main sources of revenue.
While it's unclear how much revenue these companies would lose through divestments, they might have to rethink their broader strategies. This bill is a significant development in limiting the power of tech giants and promoting fair competition in the online advertising industry.
