Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act is a newly proposed legislation that aims to counter the growing dominance of companies like Google and Meta (Facebook) in the digital advertising space. The AMERICA Act has bi-partisan support from Senators Mike Lee, Marco Rubio, Amy Klobuchar, Lindsey Graham, Elizabeth Warren, and others.
The bill is a reaction, primarily to Google’s market dominance. For example, according to Senate.gov, Google Ad Manager is used by 90% of large publishers. In the third quarter of 2018, it served 75% of all online display ad impressions (display ad = ads that users normally see displayed when they browse sites through Google).
Google is suspected of using its market position to work with Meta to nudge out competitors like Marin Software and Bing Ads by utilizing tactics such as. . .
Manipulating ad auctions to exclude competition from competing ad services.
Using its control over publisher ads to block competition from other ad exchanges.
The AMERICA Act will impose that Sell-Side/Supply platforms, Buy-Side/Demand-side platforms, and Ad Exchanges must operate independently. It would also mandate companies to allow users to opt out of targeted advertising. Preventing tech companies from having total control over the digital advertising industry. Additionally, the bill will come with penalties for entities that violate the law, which the FTC will enforce.
Sell-Side/Supply Platforms = Platforms used by publishers to sell, manage, and optimize the ad inventory on their websites.
Buy-Side/Demand-Side Platforms = Platforms for advertisers to bid on advertising space provided by publishers.
Ad Exchanges = The virtual marketplace for publishers and advertisers to transact and trade digital ad space.
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