Klobuchar, Lee Introduce Bill Targeting Tech Ad ‘Monopolies’
Bipartisan legislation introduced Thursday by Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn., and ranking member Mike Lee, R-Utah, attempts to eliminate “conflicts of interest” that allowed platforms like Google and Facebook to “manipulate ad auctions and impose monopoly rents on…
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a broad swath of the American economy,” as expected (see 2303070070). Sponsors of the Advertising Middlemen Endangering Rigorous Internet Competition Accountability (America) Act include Sens. Ted Cruz, R-Texas; Richard Blumenthal, D-Conn.; Marco Rubio, R-Fla.; Elizabeth Warren, D-Mass.; Eric Schmitt, R-Mo.; Josh Hawley, R-Mo.; Lindsey Graham, R-S.C.; JD Vance, R-Ohio; and John Kennedy, R-La. The bill bars digital ad companies “from owning more than one part of the digital ad ecosystem if they process more than $20 billion in digital ad transactions.” Conflicts of interest are so “glaring” in ad markets that “one Google employee described Google’s ad business as being like ‘if Goldman or Citibank owned the NYSE,’” said Lee. “This lack of competition in digital advertising means that monopoly rents are being imposed upon every website that is ad-supported and every company -- small, medium, or large -- that relies on internet advertising to grow its business.” He noted a similar bill introduced in the 117th Congress, the Competition and Transparency in Digital Advertising Act, had the support of groups including Heritage Action for America and Public Knowledge. “There is nothing American about Congress dictating the size, shape and structure of competitive businesses,” said Computer & Communications Industry Association President Matt Schruers. “Gerrymandering rules around one group of businesses for the benefit of another is neither good competition policy nor responsible economic policy.