Summary
Stops large digital ad companies from owning multiple parts of the ad-selling process to make online advertising fairer for everyone.
What problem does this solve?
Some very large companies control the buying, selling, and marketplace for digital ads, which creates an unfair advantage. This bill forces the biggest companies to break up these roles and requires more honesty from others to make the market more competitive.
Who does this affect?
- Large digital advertising companies
- Businesses that buy digital ads
- Website and app publishers that sell ad space
What does this bill do?
Prohibits large companies from owning conflicting businesses
Forbids any company with over $20 billion in digital ad money from owning an ad exchange if it also owns a business that buys or sells ads for others.
Creates new duties for ad companies
Requires companies with over $5 billion in digital ad money to act in the best interest of their customers and get the best deals possible for them.
Requires more transparency
Forces ad buying and selling companies to give customers detailed information about their ad transactions upon request, so customers can check if they are being treated fairly.
Allows customers to sue for damages
Gives customers who are harmed by a company breaking these rules the right to sue for money, with a minimum of $1 million for each month a violation occurred.
Establishes an enforcement process
Allows the Attorney General to sue companies that break these rules and to review and approve any sales of business units required by the law.
Mandates public reports on ad routing
Requires ad buying and selling companies to publish a report every three months showing where they sent ad bids for their customers.
What is the real world impact?
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Breaks up the digital ad businesses of large tech companies
Forces companies that dominate the digital ad market to sell off parts of their business. This aims to reduce their control and prevent them from acting as the seller, buyer, and marketplace all at the same time, which can be a conflict of interest.
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Increases government regulation of the tech industry
Creates new rules and oversight for the digital advertising industry. Some may argue this is government overreach that could disrupt the market, while others see it as necessary to ensure fair competition.
When does this start?
The main rules in this bill would start one year after it becomes law, with several other deadlines for companies and the government.
Attorney General guidance
The Attorney General must release guidance on how companies should sell off parts of their business within 120 days of the bill becoming law.
Company divestiture plan filing
Companies required to sell parts of their business must file their plan with the Attorney General no later than one year after the law is enacted or 180 days after they meet the income limit.
Attorney General review period
The Attorney General has 60 days to approve or deny a company's plan to sell off a part of its business.