A group of Democrats and Republican senators introduced a new bill that is likely to force Google and Facebook to split their ad businesses.
The bill is a called the Competition and Transparency in Digital Advertising Act and it could ban companies processing anything over $20 billion annually in digital ad transactions from running more than one portion of the digital ad ecosystem.
According to experts, the bill targets Google directly and it is seen as a bid to stop its ad monopoly. For a long time, the search engine company had been seen as some sort of ad dictator because it controls both the suppliers and the buyers.
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Speaking on the news, Google spokesperson Julie Tarallo McAlister said:
“Advertising 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.
“Breaking 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.”
Since Google makes more than $50 billion in ad revenue across its Search, YouTube, and its ad networks, the company could have to diversify its portfolio. The same thing is applicable to Facebook’s parent Meta.
For companies that make less than the benchmarked $20 billion, the act could introduce some rules for them too like mandatory transparency about pricing and more.
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