This US Senate bill could hurt Google’s entire advertising business

This US Senate bill could hurt Google’s entire advertising business. It would force the giant to withdraw from many ad markets.

An account that covers all matters related to the advertising of google if accepted, has just been introduced in the United States Senate. the Competition and Transparency in Digital Advertising Actcurrently backed by both parties would deter companies earning more than $20 billion a year from digital ad transactions from participating in more than one aspect of the digital ad ecosystem,” reports The Wall Street Journal.

This US Senate bill could hurt Google’s entire advertising business

Google easily falls into this category. In the last quarter alone, the Mountain View company generated a whopping $54.7 billion in ad revenue. While other companies are reaching this milestone, Google is involved in many aspects of the advertising process. The American giant has an exchange on which ad networks bet. It also provides tools to help businesses buy and sell ads.

A version of this text will be submitted to the House of Representatives shortly. If this proposal becomes law, Google would have to exit some of these market segments. The giant would have a year to comply once the law is promulgated. Meta can also be affected by this law.

“Having Google act as both a seller and a buyer, as well as running an exchange, creates an unfair and excessive market advantage that does not necessarily reflect the value they provide,” R-Utah Senator Mike Lee told the newscast. “If a company can wear all these hats at once, it could hurt everyone.”

It would force the giant to withdraw from many ad markets

Mike Lee is the first member of the Subcommittee on Competition Policy, Antitrust and Consumer Rights† The committee chair, Senator Amy Klobuchar (D-Minnesota) is a co-sponsor of the bill, as are Senators Ted Cruz (R-Texas) and Richard Blumenthal (D-Connecticut).

“Ads tools from Google and many competitors help U.S. sites and apps fund their content, grow their businesses, and protect users from privacy risks and other false advertisements,” said a Google spokesperson for Engadget. “Discontinuing these tools would impact publishers and advertisers, increase ad quality and create new privacy risks. And at a time when inflation is rampant, this would hinder small businesses looking for simple and effective ways to grow online. The real problem is the poor quality of data brokers who threaten Americans’ privacy and flood them with bad ads. In short, it’s the wrong bill, at the wrong time, aimed at the wrong target.”

Among other points raised by this bill, companies that earn at least $5 billion in advertising transactions per year would be required to provide a transparent price list and act in the best interest of their customers. These customers would also have the option of taking legal action in the event of non-compliance.

Other segments are currently in the works against the tech giants from a legal standpoint. l’American Innovation and Choice Online Act by Amy Klobuchar would prohibit companies from favoring their own products over the competition on their own platform. For example, Apple would not be able to offer its own apps above third-party apps in search results in the App Store.

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