S.1060 - Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act; AMERICA Act (119th Congress)
Summary
S.1060, the AMERICA Act, aims to amend the Clayton Act to foster competition and transparency in digital advertising. It targets conflicts of interest within the digital advertising ecosystem by imposing restrictions on companies exceeding a certain revenue threshold. The bill seeks to prevent entities from simultaneously owning different parts of the advertising supply chain, such as ad exchanges, buy-side brokerages, and sell-side brokerages.
Expected Effects
The likely effect of this bill is a restructuring of the digital advertising market, potentially leading to divestitures by major players. This could increase competition and provide more transparency for advertisers. It also establishes best interest and best execution duties for brokerages.
Potential Benefits
- Increased transparency in digital advertising transactions.
- Potentially lower costs for advertisers due to increased competition.
- Stricter enforcement against anti-competitive practices.
- Protection of brokerage customer data ownership.
- Establishment of an Antitrust Consumer Damages Fund to compensate those harmed by violations.
Potential Disadvantages
- Potential for increased regulatory burden on businesses.
- Possible disruptions in the digital advertising market during the divestiture process.
- Complexity in defining and enforcing the new regulations.
- Risk of unintended consequences affecting smaller businesses or new entrants.
- Potential legal challenges to the bill's provisions.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8, Clause 3) by regulating interstate commerce related to digital advertising. The establishment of an Antitrust Consumer Damages Fund and the Attorney General's enforcement powers are consistent with the government's role in regulating markets to prevent monopolies and promote fair competition. The bill does not appear to infringe on any individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).