New bipartisan bill targeting Google’s digital advertising business could arrive this week

What do you want to know

  • A bipartisan group of US senators wants to curb Google’s dominance in the digital advertising market.
  • This week, lawmakers could introduce a new bill targeting Big Tech’s online advertising business.
  • If the bill becomes law, Google and other tech giants will be forced to sell some of their ad operations.

Google’s dominance in the digital advertising market has often been the target of various antitrust investigations in the United States and abroad, and a new bill expected to be introduced as soon as this week could loosen its grip on the world. trouble online advertisements.

Quoting people familiar with the matter, Bloomberg reports that a bipartisan group of US senators plan to introduce new legislation aimed at breaking the stranglehold of Google and other tech giants on the digital advertising market. The bill could arrive later this week.

Senator Mike Lee of Utah is reportedly leading efforts to limit tech companies’ control over various aspects of online advertising. As a result, companies with more than $20 billion in digital ad revenue will be barred from acting as brokers for buyers or sellers of online ads while also controlling the exchange on which ad space is exchanged.

This means Google will be forced to sell some of its digital advertising business. The bill appears to be aimed at Google on its face, but it will also prohibit other tech giants, such as Meta and Amazon, from controlling multiple parts of the digital ad supply chain.

Additionally, companies with more than $5 billion in digital ad revenue will be legally required to act solely for the benefit of their clients, much like how a financial advisor acts in the best interests of their clients. The legislation will also require companies to increase transparency in their data collection and advertising transactions.

Google and Meta were not immediately available when contacted by Android Central for comment.

If the bill passes, it will be a blow to Big Tech’s digital advertising model, which is often chastised for charging exorbitant fees. Democratic Senators Amy Klobuchar of Minnesota and Richard Blumenthal of Connecticut also sponsored the bill.

Late last year, Google’s advertising business also came under regulatory scrutiny from Canada’s competition watchdog. The country’s Competition Bureau has launched an investigation into the search giant’s advertising activities, citing concerns it will undermine advertising competition in Canada.