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Friday, June 24, 2022

Google’s advertising business will break under new bipartisan bills

The Post has learned that Google’s sprawling online advertising business will be scrapped as part of a pair of tough bipartisan resolutions being introduced in both houses of Congress.

The pair of bills would bar large companies from operating in many parts of the online advertising supply chain – which critics say would effectively eliminate Google’s ability to act as a major buyer, seller and broker in the online advertising world. To do.

The passage of the bills would deal a multi-billion dollar blow to Google’s current business model, which critics claim allows the company to effectively impose a “monopoly tax” on the Internet.

Representative Ken Buck (R-Colo.) is the principal sponsor of the upcoming House bill, while David Sicilian (D-RI) is a co-sponsor, the offices of both lawmakers confirmed to The Post.

“Google is selling ads, they’re buying ads, and they’ve bought the auction company,” Buck told The Post. “That’s all the bill says you can’t do all three.”

Buck said he is still in the process of gathering additional co-sponsors before the bill is introduced.

A Senate version of the law, called the “Competition and Transparency in Digital Advertising Act,” was introduced Thursday morning with censors by Mike Lee (R-Utah). Amy Klobuchar (D-Min.), Richard Blumenthal (D-Conn.) and Ted Cruz (R-Texas) are serving as co-sponsors.

Rep. Ken Buck (R-Colo.) is a major sponsor of the upcoming House bill.
Bloomberg via Getty Images

According to a copy of the Senate bill seen by The Post, it would apply to publicly traded companies with annual advertising revenue of $20 billion — meaning Facebook and Instagram’s parent company Meta are also affected in addition to Google. Might be possible.

The bill would also allow advertising brokerages to “charge best interest” to their clients, similar to the way financial advisors on Wall Street are required to act legally for the sole benefit of their clients.

“The lack of competition in digital advertising means monopolistic fares are being imposed on every ad-supported website and every company – small, medium or large – that relies on Internet advertising to grow its business,” Lee said in a statement. is.” , “It’s essentially a tax on thousands of American businesses, and thus a tax on millions of American consumers.”

Representative David Sicilian
Rep. David Cicilline (D-RI) is a co-sponsor of the House bill.
Future Publishing via Getty Images

Klobuchar said the bill would restore competition in digital advertising and “to create an even playing field that fosters fairness and innovation going forward.”

In a statement to The Post, a Google spokesperson dismissed the proposal as a “wrong bill aimed at the wrong, at the wrong time.”

A Google spokesperson said, “The 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 deceptive ads.” We do.”

Google
Google said the bill is “the wrong bill aimed at the wrong target, at the wrong time.”
Reuters

“Breaking those tools will hurt publishers and advertisers, reduce ad quality, and create new privacy risks. And, in times of increased inflation, it will hinder small businesses from looking for easy and effective ways to grow online. The real issue is low-quality data brokers threatening Americans’ privacy and flooding them with spammy ads.

Meta declined to comment.

In the House, Buck may have trouble garnering widespread GOP support for the bill. Sources said Representative Jim Jordan (R-Ohio), who is the top Republican on the key House Judiciary Committee, has objections to the bill.

Jordan and House Judiciary Republican spokesman Russell Dye took an apparent taunt at Buck’s work with Chiklin in a statement to The Post.

“Mr. Jordan has concerns working with Democrat impeachment managers who believe conservative censorship online is a myth,” Dye said.

The Senate bill was first reported by the Wall Street Journal on Thursday. Buck and Cicelin’s mate has not been previously reported.

The Post first reported in January that Sicilin and Buck were considering sponsoring a House version of the bill, an online advertising marketplace.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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