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Facebook and Google Were Involved in Ad Collusion Plot, Claims Court Filing

Published Mon, Jan 17 2022 12:04 pm
by The Silicon Trend

Google Branding (2)
 

Facebook and Google Were Involved in Ad Collusion Plot, Claims Court Filing

A federation of state attorneys general led by General Ken Paxton released a new antitrust complaint against Google on Friday, providing a detailed statement on the firm's alleged ad collusion with US tech giant - Facebook in programmatic ad markets. In November, the first complaint was filed claiming a broad conspiracy between both, especially in a collaboration project - Jedi Blue, where the companies were seen forming an alliance to control header bidding practices.

 

Also read: How Metaverse Reshape Digital Marketing

 

Collaborative Project – Jedi Blue

Friday's filing indicates that the Jedi Blue agreement was reviewed at the top levels of Facebook and Google, with personal involvement from the 2 company's CEOs - Mark Zuckerberg and Sundar Pichai, and Meta platform COO - Sheryl Sandberg. In a mail to Zuckerberg, Sandberg told the CEO that this is strategically a big deal.

The Google rep - Peter Schottenfels, said that AG Paxton's statement was not precise as the company signs several deals each year that don't require the CEO's approval. Moreover, Schottenfels claimed that the agreement was well-publicized as per the attorney's statement; hence, it wasn't a secret. The deal enables FAN and the adverts it represents to take part in Open Bidding, which helps in increasing published ad space demands and earning more revenue.

The court filing comes during a range of antimonopoly actions against Google, including parallel cases focusing on Google Play Store management and search manipulation. But the given complaint is the most crucial part for the firm, focusing on the ad networks that offer a significant revenue portion in Google.