CEO of Alphabet and Google Sundar Pichai

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The new bipartisan proposal is aimed at Google and will force it to destroy its digital advertising business if accepted.

The Competition and Transparency in Digital Advertising Act was introduced Thursday by a group of key senators from the Antitrust Judiciary Subcommittee: rating member and chairman Senator Mike Lee of Utah and Amy Klobuchar, Minion, and both Senator Ted Cruz, Texas, and Texas. Blumenthal, D-Conn.

Advertising is a huge part of the business of the parent company Alphabet. Alphabet’s revenue in the first quarter was $ 68.01 billion, of which $ 54.66 billion came from advertising, up from $ 44.68 billion last year.

The bill will ban companies that process more than $ 20 billion annually in digital advertising transactions from participating in more than one part of the digital advertising process, according to The Wall Street Journal, which first reported on the news.

Google is shamefully involved in several stages of the process of digital advertising, a business that has become the center of an antitrust lawsuit against the company. Google conducts auctions or exchanges where advertising transactions take place, and uses tools to help companies sell and buy advertising. If new legislation were passed, he would have to choose which part of the business to stay in.

“If you have Google acting as both a seller and a buyer and running an exchange, it gives them an unfair, unjustified market advantage that doesn’t necessarily reflect the value they represent,” Lee said in an interview with the Journal. interview. “If a company can wear all of these hats at once, it can engage in behaviors that harm everyone.”

“Advertising tools from Google and many competitors help US websites and applications fund their content, help businesses grow, and protect users from privacy and misleading ads,” a Google spokesman said in a statement. “Hacking these tools will hurt publishers and advertisers, reduce the quality of advertising and create new risks to privacy. And in times of high inflation it would stop small businesses looking for simple and effective ways to grow online. Quality data brokers that threaten Americans their spam advertising. In short, this is the wrong bill, at the wrong time, aimed at the wrong goal. “

The coalition behind the bill emphasizes that support for curbing technological power through antitrust reform crosses ideological lines. It is also noteworthy that Lee, the main Republican on the subcommittee, led the bill, given that he opposed some of the other antitrust reforms considered by Klobuchar et al.

Klobuchar, as chairman of the subcommittee, spearheaded efforts to reform competition this year. So far, two major bills have stood out for having a chance to become law if Congress passes them in time: the U.S. Innovation and Online Choice Act, which prevents dominant platforms from preferring their own products to those of competitors who rely on their services; open app markets that will have a similar impact but focus on app stores such as Apple and Google. Lee supported the latter, but not the former, during the committee vote.

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