Senators want more laws and regulations aimed at the digital advertising activities of large tech companies. This should allow for more competition on the digital advertising market.

Various US senators submitted a bill called ‘The Competitions and Transparency in Digital Advertising Act‘. The bill should curb the power of large tech companies such as Google, Meta and Amazon. The senators hope to create room for competition, instead of allowing the organizations to divide all space among themselves.

End of monopoly

The bill sets out to put an end to the big tech’s monopoly on digital advertising sales. New rules should prohibit large (online) advertising companies from participating in multiple sides of the advertising chain. Currently, large advertisers like Google both sell advertising space and advertisements to publishers. As a result, advertisers dominate both supply and demand. The bill requires large companies to choose one or the other.

Proposals

The bill prohibits companies that earn more than $20 billion (approximately €19 billion) per year from digital advertising transactions from participating in the online advertising ecosystem. This should bring more transparency and prevent conflicts of interest.

Furthermore, the bill imposes rules for companies that generate more than €5 billion (€4.7 billion) in digital advertising turnover. For example, to always act in the best interests of customers and provide transparent bids for digital ads. Finally, the companies must provide customers with equal access to their digital advertising platforms and capabilities.

The bill will shortly be debated in the Senate.

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