Webdesk: The US Senate wants to pass the AMERICA Act to break up the ad businesses of tech giants. The giants like Google and Meta. This is to prevent online ad monopolies.
According to the Act, large digital advertising companies won’t be able to own both sides of an ad exchange. Where they own both the demand-side and supply-side platforms.
Also, people who buy and sell ads can’t own both the demand side and the supply side of the ad platform, unless they only want to sell their ad stock.
Medium-sized companies will also have to make the “best execution” for ad bids instead of just holding back to serve their operations. The Act puts a lot of emphasis on being open and giving people access to technical tools and data.
If, on the other hand, a business does operate on both sides of the market. It will need to set up “firewalls” to prevent abuse and avoid conflicts of interest.
Senators who support the Act don’t hide the fact that they want Google and Meta to eventually sell “significant portions” of their advertising businesses. Politicians said that Apple and Amazon might also have to follow the Act.
Creators have sued the Justice Department and other states, saying that Google unfairly hurts competitors by manipulating the ad market. Google’s monopoly on ads lets it charge “monopoly rents” on the internet, so the story goes.
The AMERICA Act hasn’t been passed yet, but if it were, it would be a huge blow to companies like Google and Meta that make most of their money from selling ads.
