When Texas Attorney General Ken Paxtonfirst spearheadeda smash hit multistate antitrust case against Google towards the end of 2020 , it let in some ( hard redacted ) allegations of a secret arrangement with Facebook that have the duo squash fellow competition in the advertising space and lord over the lion ’s share of digital ad disbursal to this daylight . Now , some details about that deal are finally open to the public : newfangled court filingsfrom the wooing that were unsealed on Friday allege that the peck , dubbed “ Jedi Blue , ” gave Facebook an illegal ramification - up in Google ’s advertising auctions in exchange for Facebook ’s word that it would back down from its own ad plans . Further , it claims that the top executives at both companies sign off on the deal .
This all changed in 2017 with the design of a Modern variety of tech yell “ cope bidding ” that would permit websites short-circuit Google ’s exchange and still make comely earnings from their ad outer space . Facebookquickly announcedit would make itself header bidding - compatible shortly after , which meant publishers could tip into Facebook’smany , many ( many)advertisers in exchange for surrendering a minuscule chunk of their ad dollar to the society . More ad dollar mark in Facebook ’s pocket think fewer in Google ’s , which the case alleges leave behind the latter scrambling for a elbow room to spread this competitive terror .
The deal the two allegedly landed on was “ Jedi Blue . ” In it , Facebook agreed to cut back on its involvement with cope summons in exchange for “ data , pep pill , and other reward ” it would get by using Google ’s ad vendue . One of the swelled reward delineate in the eccentric was an alleged up - front quota on how many ad auction bridge Facebook would get ahead over other competitors using Google ’s advertizing exchange .
Photo: Denis Charlet (Getty Images)
While their names are redacted in the documents , the wooing claim that Facebook ( now Meta ) CEO and COO — Mark Zuckerberg and Sheryl Sandberg , severally — sign off on the deal in 2018 , as did Google CEO Sundar Pichai . Today , both of their company controlmore than halfof the roughly$491 billion dollardigital advert market .
The two company denied their involvement with the alleged schema in separatestatements to Politico , with both exact that their ad tech is design to help advertisers and publishers , rather than line their own pockets . “ Despite Attorney General Paxton ’s three attempts to re - write his complaint , it is still full of inaccuracy and lacks legal merit , ” Google spokesperson Peter Schottenfels said . “ There is vigorous competition in online advertizing , which has reduced ad tech fees , and expanded choice for publishers and advertisers . ”
Facebook — which since rebranded to Meta — echoed the persuasion . “ Meta ’s non - exclusive bidding agreement with Google and the similar agreements we have with other bidding platforms , have help to increase competition for advertizing placements , ” Meta spokesperson Christopher Sgro said . “ These business kinship enable Meta to deliver more economic value to advertisers while fairly compensating publishing company , leave in better outcome for all . ”
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