Bipartisan legislation aims to restructure digital ad market
Congressional bill targets conflicts of interest in $700 billion advertising ecosystem.
Senator Mike Lee (R-UT) reintroduced the Advertising Middlemen Endangering Rigorous Internet Competition Accountability (AMERICA) Act on March 13, 2025, marking a significant legislative attempt to address structural issues in the digital advertising marketplace. The bill has garnered support from a bipartisan coalition of senators including Amy Klobuchar (D-MN), Eric Schmitt (R-MO), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Cory Booker (D-NJ).
The legislation takes aim at companies that operate in multiple layers of the digital advertising supply chain simultaneously, potentially creating conflicts of interest and market inefficiencies. If enacted, it would specifically amend the Clayton Antitrust Act to prevent conflicts of interest and promote competition in digital advertising transactions.
The AMERICA Act introduces substantial structural reforms for the digital advertising industry. Companies with more than $20 billion in annual digital advertising revenue would face significant restrictions on their business operations. These large firms would be prohibited from simultaneously owning a digital advertising exchange while also operating as either a buy-side or sell-side brokerage, or being a seller of digital advertising space.
Additionally, companies would be barred from owning both buy-side and sell-side brokerages concurrently. These provisions aim to eliminate situations where a single entity acts as both broker and exchange operator, creating potential conflicts of interest.
Companies with more than $5 billion in annual digital advertising revenue would face less severe restrictions but would still need to comply with transparency requirements and fiduciary obligations to their customers.
According to Check My Ads Institute, which endorsed the legislation, "more than 50% of every ad dollar never reaches the publisher, instead being swallowed by opaque ad-tech intermediaries." The organization also notes that "a single ad impression may pass through as many as 20 different vendors, each taking a cut—without any meaningful oversight."
Specifications
The legislation contains detailed specifications regarding the operations of digital advertising platforms. These include:
- Best interest duty: Brokerages must act in the best interests of their customers and cannot prioritize their own interests.
- Best execution duty: Brokerages must seek the most favorable terms available for each transaction.
- Transparency requirements: Upon request, brokerages must provide customers with information to verify compliance with their obligations, including data on bids, pricing, and routing practices.
- Firewalls: Companies must establish policies to ensure their different business units operate independently.
- Fair access duty: Digital advertising exchanges must provide fair access to all buyers and sellers.
- Time synchronization: Platforms must synchronize their business clocks to within 2 milliseconds of the National Institute of Standards and Technology's atomic clock.
- Data ownership: Records pertaining to orders solicited or submitted by customers remain the property of those customers.
- Routing practices disclosure: Brokerages must publish quarterly reports on their order routing practices.
The legislation also establishes enforcement mechanisms, including civil actions by the Attorney General and state attorneys general, as well as a private right of action for brokerage customers harmed by violations.
Legislative history and context
This marks the third iteration of similar legislation. Senator Lee previously introduced the Competition and Transparency in Digital Advertising Act in the 117th Congress, which he described as "functionally identical" to the AMERICA Act. The bill was reintroduced as the AMERICA Act in the 118th Congress in 2023, receiving bipartisan support from ten senators.
The current version in the 119th Congress maintains the core provisions of the earlier bills while adding specific senators as co-sponsors. The legislation would take effect one year after enactment, giving companies time to adapt to the new requirements.
The reintroduction comes amid ongoing antitrust scrutiny of major technology companies. In January 2023, the Department of Justice filed an antitrust suit against Google over alleged anti-competitive conduct in the digital advertising sector, a case that remains ongoing.
Industry implications
The legislation would have profound implications for digital advertising operations, particularly for large technology companies that currently operate across multiple segments of the advertising supply chain.
Sarah Kay Wiley, Director of Policy at Check My Ads Institute, stated: "For too long, advertisers and publishers have been caught in a rigged system—squeezed by powerful middlemen who profit from every transaction while keeping everyone else in the dark. Conflicts of interest run rampant, ad dollars vanish into black boxes, and the people creating value are left with scraps."
Arielle Garcia, Chief Operating Officer at Check My Ads, added: "For years, Google has had the unchecked power to unilaterally write the rules and dictate the norms of the digital ad industry. By manipulating ad auction dynamics, exerting power over industry standard-setting, and dangling incentive deals under the noses of ad agencies, Google has wielded its dominance to keep the bar low – to normalize opacity and legitimize conflicts of interest to the detriment of advertisers, publishers, and users alike."
Why this matters for the marketing community
This legislation holds significant importance for marketing professionals for several reasons. First, it addresses longstanding concerns about transparency and efficiency in the digital advertising ecosystem. Marketers have struggled with understanding where their ad dollars go and how effectively they are being spent within the complex web of intermediaries.
The requirement for detailed reporting and greater transparency could provide marketers with better insights into the performance and value of their advertising investments. This might lead to more informed decision-making and potentially more effective allocation of marketing budgets.
Additionally, the structural changes could reshape the competitive landscape of digital advertising platforms. If major technology companies are required to divest parts of their advertising businesses, this might create opportunities for specialized firms to emerge or expand in specific segments of the market. Marketing professionals might find themselves with more options for advertising partners but may also need to adapt to a more fragmented ecosystem.
The legislation's emphasis on fiduciary duty also aligns with marketers' interests in having their advertising partners act in their best interests rather than potentially prioritizing their own financial gain. This could lead to better alignment between marketers and their advertising service providers.
Price transparency requirements might also give marketers better leverage in negotiating with advertising platforms and intermediaries, potentially reducing costs or improving return on investment. However, the transition period could create uncertainty and operational challenges as the industry adapts to new structures.
Marketing professionals should closely monitor the progress of this legislation and begin assessing how potential changes might affect their digital advertising strategies and partnerships. Organizations that develop a clear understanding of their current digital advertising supply chains will be better positioned to adapt if the legislation passes.
Timeline of events related to the AMERICA Act
- January 2023: The Department of Justice filed an antitrust suit against Google over alleged anti-competitive conduct in the digital advertising sector.
- March 30, 2023: Senator Mike Lee introduced the first version of the AMERICA Act (S.1073) in the 118th Congress.
- May 3, 2023: The Senate Judiciary Subcommittee on Competition Policy, Antitrust and Consumer Rights held a hearing to consider the legislation.
- March 13, 2025: Senator Lee reintroduced the AMERICA Act (S.1060) in the 119th Congress with bipartisan support.
- April 1, 2025: Check My Ads Institute publicly endorsed the AMERICA Act.
The bill is currently referred to the Senate Judiciary Committee for consideration. If passed, companies would have one year from the date of enactment to comply with the new requirements.