AMERICA Act Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act
If enacted, SB1073 would significantly alter the regulatory landscape for digital advertising firms. The bill requires brokerages to adhere to best interest and best execution duties, ensuring they act in the customers' best interests and seek favorable terms for transactions. Additionally, it necessitates greater transparency through mandatory disclosure of bidding practices, data usage, and customer information, aiming to empower users and foster trust. The bill emphasizes the need for good practices in digital advertising to combat issues like fraud and misinformation in this fast-evolving market.
SB1073, also known as the AMERICA Act, seeks to amend the Clayton Act to enhance competition and transparency in the digital advertising sector. The bill aims to prevent conflicts of interest in digital advertising transactions by implementing strict regulations on the ownership of advertising exchanges, buy-side, and sell-side brokerages based on their annual revenue. Specifically, entities with more than $20 billion in digital advertising revenue would face prohibitions on owning certain types of brokerage firms, aiming to reduce monopolistic structures within the industry and promote fair competition.
Notably, the bill may face opposition from major digital advertising corporations that could see their business models disrupted by the proposed divestiture requirements and operational restrictions. Concerns have been raised regarding the feasibility of such regulations on smaller firms and the potential challenges in enforcing the complex requirements on data transparency and ethical practices. Opponents argue that these measures might inadvertently impose burdens on businesses without adequately addressing the underlying issues of competition and ethical conduct in the digital advertising ecosystem.