June 30, 2022

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Google's antitrust: Bipartisan Congressional bill is the latest in the tech company's legal woes over ad practices

Google’s antitrust: Bipartisan Congressional bill is the latest in the tech company’s legal woes over ad practices

Congress will launch A bipartisan attempt to dismantle Google’s advertising dominance in another pitched battle between lawmakers and big tech.

The Digital Advertising Competition and Transparency Act prohibits companies with more than $20 billion in digital advertising transactions from participating in more than one portion of the digital advertising process.

The bill is co-sponsored by Senators Ted Cruz (R., Texas), Amy Klobuchar (D., Minnesota) and Richard Blumenthal (D., Connecticut), According to the Wall Street Journal,.

The Google It will suffer greatly from that bill due to parent company Alphabet’s revenue of more than $54 billion from digital advertising in the first quarter alone. The bill would essentially need to be split in some form in order to comply with the new federal requirements.

The company’s legal troubles began in 2020 with an antitrust lawsuit brought by the Department of Justice, which alleged that Google used exclusive deals with wireless carriers and phone makers to control competition. The then attorney general, William Burr, said that Google maintained “the control of millions of people on the Internet.” […] I owe it to an illegal monopolist.”

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Biden’s Justice Department has launched new investigations into Google’s alleged antitrust practices in relation to digital advertising, but no lawsuit has been filed over the issue to date.

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But Texas filed a lawsuitwhich has It has grown into a multi-state effort, in connection with its advertising practice, in January of this year. Google Director of Economic Policy Adam Cohen Books about the lawsuit That the company deemed it “more ridiculous than mild” did not “meet the legal criteria for sending the case to trial.”

ribbon protection else they change they change %
The Google ALPHABET INC. 2,178.16 -29.52 -1.34%
AMZN AMAZON.COM INC. 2,151.82 +5.44 + 0.25%
TWTR Twitter you. 38.29 +1.00 + 2.68%
ZM ZOOM VIDEO COMMUNICATIONS INC. 89.74 -1.20 -1.32%

“The complaint misrepresents our business, products, and motivations, and we are moving to dismiss it on the basis of its failure to make reasonable antitrust claims,” ​​Cphen wrote in a blog post.

Google is holding a role in multiple steps of its digital advertising practice — a practice that Senator Mike Lee, R-UT, has criticized for wearing multiple hats at once.

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“When a company can wear all these hats at once, it can engage in behavior that harms everyone,” Lee told the newspaper this week.

A Google spokesperson said of the new law that “restricting these tools will harm publishers and advertisers, reduce the quality of ads and create new privacy risks.”

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“The real problem is the low-quality data brokers who threaten Americans’ privacy and flood them with unwanted advertising,” the spokesperson said.

Companies will have one year to comply with the new requirements if the law goes into effect.

Hilary Vaughn of FOX Business contributed to this report.