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Facebook, Google CEOs were aware of formal advertising market transactions, according to court filings




The deal with Facebook, which Google named “Jedi Blue,” was “approved” by Google CEO Sundar Pichai, and Facebook CEO Mark Zuckerberg is discussing it. , Said in the third amended complaint.

Google said the complaint allegations were “inaccurate,” and the complaint itself was “full of inaccuracies.”

A Google spokeswoman said, “I’m going to file a motion to dismiss next week.”

Facebook, which later became Meta Platforms Inc, said in a statement that the deal wasn’t just for Google, but other deals have intensified competition for advertising. “While giving the publisher a fair amount of money,” he said it was better for advertisers.

Facebook has not been nominated as a defendant in the proceedings.

The deal is allegedly part of Google’s efforts to counter header bids that publishers wanted to use to make more money from ads posted on their websites.

“Google quickly realized that this innovation was effectively threatening the exchange’s ability to demand a huge 19 to 22 percent reduction in all advertising transactions,” Filing said.

That effort to kill header bids included signing a deal with Facebook, which supported header bids.

“Ultimately, Google and Facebook have closed the highest-level deal,” the complaint said. “Following the agreement, Facebook has reduced its involvement in header bidding in return for Google giving Facebook information, speed, and other benefits.”

As part of the agreement, the two online platforms have agreed on how often Facebook will win the publisher’s auction, Filing said.

A Texas lawsuit involving other states was filed in 2020, alleging that Google used compulsory tactics to boost its already dominant advertising business and broke antitrust laws.

The proceedings were one of several proceedings resulting from a federal and state group investigation into an online platform.




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