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\n

On Thursday, a group of Senate Republicans and Democrats introduced a new bill that could force Google and Facebook\u2019s parent company, Meta, to spin off their online ads businesses, as first reported by The Wall Street Journal<\/em><\/a>.<\/p>\n
The Competition and Transparency in Digital Advertising Act \u2014 co-sponsored by Sens. Mike Lee (R-UT), Ted Cruz (R-TX), Amy Klobuchar (D-MN), and Richard Blumenthal (D-CT) \u2014 would ban companies processing more than $20 billion a year in digital ad transactions from running more than one portion of the digital advertising ecosystem. <\/p>\n
The restrictions would directly impact Google, which tech antitrust hawks have long seen as a vertical monopoly in display advertising. Omidyar Network advisor David Dinielli made the case directly to Congress in testimony to the House Judiciary Committee in 2020<\/a>. \u201cGoogle \u2014 through its various ad tech tools \u2013 represents both the suppliers and the purchasers,\u201d Dinielli said, \u201cand also conducts the real-time auctions that match buyers and sellers and determine the price.\u201d<\/p>\n
\nThe restrictions would directly impact Google, which tech antitrust hawks have long seen as a vertical monopoly in display advertising<\/q><\/aside>\n<\/div>\nReached for comment, Google spokesperson Julie Tarallo McAlister said the proposed law would ultimately hurt users. \u201cAdvertising tools from Google and many competitors help American websites and apps fund their content, help businesses grow, and help protect users from privacy risks and misleading ads,\u201d Tarallo McAlister told The Verge <\/em>on Thursday. \u201cBreaking those tools would hurt publishers and advertisers, lower ad quality, and create new privacy risks. And, at a time of heightened inflation, it would handicap small businesses looking for easy and effective ways to grow online.\u201d<\/p>\nThe Journal <\/em>reports<\/a> that a similar measure is expected to be introduced by Reps. Ken Buck (R-CO) and Pramila Jayapal (D-WA) this week.<\/p>\n
For Google, the bill could require the company to divest majorities of its digital advertising business. Google\u2019s advertising marketplace rakes in billions each quarter for the company, pulling in $54 billion<\/a> across Search, YouTube, and its ad networks in the first quarter of this year alone. <\/p>\n
Big Tech\u2019s dominance in the online advertising space has drawn criticism from lawmakers and law enforcement officials across the country for the last few years. In 2020, Texas Attorney General Republican Ken Paxton led a lawsuit with more than a dozen state attorneys general<\/a> accusing Google of misleading publishers and advertisers about its processing and pricing of ads. <\/p>\n
Meta, Facebook\u2019s parent company, would likely have to divest large portions of its ads operations as well. The measure would also put new rules in place for smaller companies, processing more than $5 billion in digital ads annually, like providing transparency around pricing and acting in the best interest of consumers. <\/p>\n
In a Thursday statement, Google called the measure \u201cthe wrong bill, at the wrong time, aimed at the wrong target,\u201d accusing \u201clow-quality data brokers\u201d of the most harmful behaviors in the industry.\u201d<\/p>\n<\/div>\n

<\/br><\/code><\/p>\n
Source: https:\/\/www.theverge.com\/2022\/5\/19\/23130963\/google-facebook-antitrust-digital-advertising-competition-bill-senate<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: On Thursday, a group of Senate Republicans and Democrats introduced a new bill that could force Google and Facebook\u2019s parent company, Meta, to spin off their online ads businesses, as first reported by The Wall Street Journal. The Competition and Transparency in Digital Advertising Act \u2014 co-sponsored by Sens. Mike Lee (R-UT), Ted Cruz […]<\/p>\n","protected":false},"author":1,"featured_media":6304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,8],"tags":[16],"class_list":["post-6303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-policy","category-technology","tag-policy"],"yoast_head":"\nSenators push to break up Google, Facebook ads businesses in new bill - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/05\/20\/senators-push-to-break-up-google-facebook-ads-businesses-in-new-bill\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Senators push to break up Google, Facebook ads businesses in new bill - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: On Thursday, a group of Senate Republicans and Democrats introduced a new bill that could force Google and Facebook\u2019s parent company, Meta, to spin off their online ads businesses, as first reported by The Wall Street Journal. 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