{"id":17642,"date":"2023-04-10T22:16:04","date_gmt":"2023-04-10T22:16:04","guid":{"rendered":"https:\/\/www.searchenginejournal.com\/what-advertisers-need-to-know-about-the-america-act-bill\/484147\/"},"modified":"2023-04-10T22:16:04","modified_gmt":"2023-04-10T22:16:04","slug":"what-advertisers-need-to-know-about-the-america-act-bill-via-sejournal-brookeosmundson","status":"publish","type":"post","link":"https:\/\/marketingnewsbox.com\/?p=17642","title":{"rendered":"What Advertisers Need To Know About The \u2018AMERICA Act\u2019 Bill via @sejournal, @brookeosmundson"},"content":{"rendered":"
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It\u2019s been a big month for big tech. It can be hard to keep up between the TikTok congressional hearing and the competitive AI explosion (hello ChatGPT, Bard, and Bing Chat).<\/p>\n

Members of the United States Congress introduced yet another new bill targeting big tech on March 30, 2023.<\/span><\/p>\n

Similar to <\/span>previous lawsuits<\/span> introduced, the \u2018AMERICA Act\u2019 bill references big tech giants, including Google, Facebook, Amazon, and Apple.<\/span><\/p>\n

The proposed bill aims to force big digital advertising companies to divest portions of their advertising business units.<\/span><\/p>\n

The \u2018AMERICA Act\u2019 Explained<\/h2>\n

Let\u2019s start with the definitions. The \u2018AMERICA Act\u2019 bill stands for: <\/span>\u201cA<\/strong>dvertising M<\/strong>iddlemen E<\/strong>ndangering R<\/strong>igorous I<\/strong>nternet C<\/strong>ompetition A<\/strong>ccountability Act.\u201d<\/span><\/i><\/p>\n

The <\/span>22-page bill<\/span><\/a> aims to amend the Clayton Act, which prevents conflicts of interest and promotes competition in selling and purchasing digital advertising.<\/span><\/p>\n

The \u2018AMERICA Act\u2019 bill will impact companies that complete over $20 billion in digital ad transactions. <\/span><\/p>\n

In a <\/span>supported document<\/span><\/a> accompanying the bill, the proposed legislation is ultimately looking to protect digital advertising competition in two ways:<\/span><\/p>\n

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  1. If processing more than $20 billion (per year) in digital ad transactions:<\/b> Prohibits the ability to own more than one part of the digital ad ecosystem. This means:<\/span>\n
      \n
    1. Ad exchange owners cannot own supply-side platforms or demand-side platforms.<\/span><\/li>\n
    2. Supply-side platform owners cannot also own a demand-side platform and vice versa.<\/span><\/li>\n
    3. Buyers and sellers of digital advertising cannot own a demand- or supply-side platform (except to sell their advertising inventory).<\/span><\/span><\/li>\n<\/ol>\n<\/li>\n
    4. If processing more than $5 billion (per year) in digital ad transactions:<\/b> Abide by fundamental obligations to protect customers (advertisers) and competition, including:<\/span>\n
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      1. Act in customers\u2019 best interest, including making the best execution on ad bids.<\/span><\/li>\n
      2. Provide transparency to customers so that they can clarify they are acting in their best interest.<\/span><\/li>\n
      3. If allowed to operate on both sides of the market, they must erect firewalls to prevent abuse and conflicts of interest.<\/span><\/li>\n
      4. Provide fair access to all customers concerning performance and information related to transactions, exchange processes, and functionality.<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

        Potential Impacts On Big Tech<\/h2>\n

        If the \u2018AMERICA Act\u2019 passes, expect a shake-up in the big ad platform conglomerates.<\/span><\/p>\n

        For example, Google and Facebook may be required to divest large portions of their advertising businesses that facilitate a large share of ad revenue.<\/span><\/p>\n

        Looking further into the Google example, the advertising platform acts on the supply-side platform (Google Ads Manager) and demand-side platform (Google Marketing Platform<\/a>). The proposed bill would require that Google divests portions of the company so it cannot have ownership in both SSP and DSP.<\/span><\/p>\n

        Amazon may also be affected and forced to divest portions of its advertising business. <\/span><\/p>\n

        Lastly, the recent growth in Apple advertising could impact the company\u2019s entry into third-party ads.<\/span><\/p>\n

        Microsoft declined our request to comment on the proposed impact on big tech and individual advertisers.<\/span><\/p>\n

        The Trickle-Down Effect On Advertisers<\/h2>\n

        There is no doubt that advertisers will be indirectly affected by this proposed change.<\/p>\n

        The impending effects on advertisers could be both positive and negative. However, there is no certainty about what will happen in digital advertising.<\/p>\n

        On the one hand, a forced business divest could mean additional opportunities for new ad platforms to emerge. Potential benefits to advertisers could be:<\/p>\n