Google May Split Up Its Advertising Business in Response to a US Senate Bill

A bipartisan group of senators has introduced a bill that, if passed, would require Google to divest its majority of its ad-tech business. A bill entitled “The Competition and Transparency in Digital Advertising Act” has been introduced to regulate and enhance transparency in the online advertising industry.

The Wall Street Journal reported that the bill would prohibit companies handling more than $20 billion in digital advertising transactions annually from participating in more than one segment of the digital advertising ecosystem.

If the bill is passed, businesses with more than $20 billion in digital ad revenue will not be able to own a digital advertising exchange if they also own a demand-side platform (DSP) or sell-side platform (SSP) or sell digital advertising space. This type of business cannot possess both a demand-side platform and a supply-side platform.

The bill would likely force Meta to divest substantial portions of its advertising operations as well.

Also, companies that handle at least $5 billion of advertising transactions will need to provide transparent pricing and act in their customers’ best interests, according to the bill.