A new bipartisan bill would force Google to break up its ad business
A group of key US Senators recently introduced the Competition and Transparency in Digital Advertising Act. If passed, it would force a breakup of Google’s advertising business.
If passed, the bill would prevent companies that process more than $20 billion annually in digital ads from participating in more than one part of the digital advertising process.
As you know, paid advertising is a large part of Google’s profits.
Recently, Google’s parent company, Alphabet, reported 54 billion in advertising revenue.
Currently, Google is the key player in the digital ad process, from owning Google Ads (which is a paid advertising auction). They also offer tools to help companies sell and buy ads.
Senator Mike Lee, a sponsor of the bill, went on to state “When you have Google simultaneously serving as a seller and a buyer and running an exchange, that gives them an unfair, undue advantage in the marketplace, one that doesn’t necessarily reflect the value they are providing,” Lee told the Journal in an interview. “When a company can wear all these hats simultaneously, it can engage in conduct that harms everyone.”