# What the Competition and Transparency in Digital Advertising Act Does

This bill targets what many see as unfair practices in online advertising by preventing large tech companies from controlling too many parts of the digital ad business at once. Think of it like preventing one company from owning both the store, the checkout counter, and the warehouse—the bill says you can't dominate multiple layers of the advertising system simultaneously.

The core restriction applies to companies making over $20 billion annually from digital advertising. These companies would be prohibited from owning a digital advertising exchange (the marketplace where ads are bought and sold) if they also own a brokerage firm that helps either buyers or sellers, or if they're directly selling ad space themselves. Similarly, they can't own both a buy-side brokerage (helping advertisers buy ads) and a sell-side brokerage (helping publishers sell ad space) at the same time. The idea is to eliminate conflicts of interest where a company could favor its own services over competitors' or manipulate prices to benefit itself.

For companies making over $5 billion annually from digital advertising, the bill imposes transparency and fairness requirements. These companies must act in the best interest of their customers, seek the most favorable terms available, and provide detailed information about how they route orders and what compensation they receive. When customers request it, brokerages must share specifics about bids, prices, timing, and data usage—though personal information about individual web users would be anonymized. Companies must also synchronize their clocks precisely and ensure all buyers and sellers in their exchanges get fair access to technology and information.

The bill creates enforcement mechanisms through the Justice Department and state attorneys general, who can sue for violations and recover damages. Importantly, it also gives customers a private right to sue, allowing them to recover at least $1 million per month of violations plus attorney's fees, or actual damages if higher. Companies that violate the ownership restrictions would have to divest (sell off) the conflicting businesses within a set timeframe, subject to Attorney General approval. The bill explicitly protects companies' ability to sell their own advertising space or buy ads for their own products, and it doesn't prevent collaborations to fight fraud or spam.

Competition and Transparency in Digital Advertising Act

Buck, Ken

Competition and Transparency in Digital Advertising Act This bill limits certain large digital advertising companies from owning multiple types of advertising exchanges or brokerages and imposes certain duties with respect to the interests of the customers of such brokerages. Advertising exchanges and brokerages generally facilitate advertisers and publishers in buying and selling advertising inventory through an automated bidding process. Specifically, companies with more than $20 billion in annual digital advertising revenue are prohibited from owning more than one type of service within the digital advertising marketplace. For example, a company, such as Google, may not own a digital advertising exchange and provide software that assists publishers of online advertisements in selling advertising space on their websites. Additionally, companies with more than $5 billion in annual digital advertising revenue that provide brokerage services to buyers or sellers of digital advertisements must act in the best interest of their brokerage customers. The bill also establishes transparency and privacy requirements for such brokerages. The bill provides for enforcement of these requirements by the Department of Justice, state attorneys general, and private right of action.