Bipartisan Legislation Targets Digital Advertising Monopolies
Bipartisan legislation introduced Wednesday seeks to promote digital advertising competition by eliminating conflicts of interest that allowed dominant platforms to manipulate ad auctions. Introduced by Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn., and ranking member Mike Lee, R-Utah, with Sens.…
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Ted Cruz, R-Texas, and Richard Blumenthal, D-Conn., the Competition and Transparency in Digital Advertising Act bans “large digital advertising companies from owning more than one part of the digital ad ecosystem if they process more than $20 billion in digital ad transactions” per year. Companies that process more than $5 billion in digital ad transactions would have specific obligations for ensuring auctions are fair and in the best interest of consumers. The bill “is among the more aggressive and narrowly tailored among various bills aimed at the tech industry,” said the Computer & Communications Industry Association. “Structural interventions in the marketplace are a blunt instrument and would be a bad precedent to set for antitrust regulation,” said President Matt Schruers. “This bill seeks to amend the Clayton Act and chip away at the consumer welfare standard, both of which have helped the U.S. become a leader in tech innovation.”