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When Texas Attorney General Ken Paxton first led a blockbuster multilateral antitrust lawsuit against Google towards the end of 2020, some of the secret agreements with Facebook (significantly edited). ) The complaint was included. It accounts for the majority of digital advertising spending to date. Now, some details about the transaction have finally been released to the public: a new court submission from a proceeding opened on Friday was a transaction called Jedi Blue on Google in exchange for Facebook’s words at Google’s advertising auction. Claims to have given an illegal leg-up that it will retreat from its own advertising plans. In addition, executives from both companies claim to have approved the transaction.
The technology used to serve ads over the Internet is Byzantine in a way that can be annoying to people in the online advertising industry. In short, it can be difficult to briefly explain more than 240 pages in the latest leg of a Texas proceeding. In a nutshell, publishers of web news sites, recipe blogs, and other sites as a whole usually rely on so-called ad exchanges to provide advertising space available to advertisers across the web. Google’s ad exchange is one of the biggest in history, and websites have few options, but if you want to make some decent advertising revenue, you need to work with the company.
This all changed in 2017 and a new kind of technology called header bidding was invented. This allows websites to bypass Google’s interactions and make decent revenue from their advertising space. Facebook soon announced that it would be compatible with header bidding. This means publishers can now use Facebook instead of handing over a small portion of their advertising spend to the company. More advertising spend in your Facebook pocket means less advertising spend on Google. In this case, Google claims to have continued to seek ways to spread this competitive threat.
The alleged landing of the two was Jedi Blue. In it, Facebook agreed to reduce its involvement in header bidding in exchange for the information, speed, and other benefits of using Google’s advertising auctions. One of the biggest benefits described in this case was a pre-allocation claim for the number of ad auctions Facebook would use Google’s ad exchange to beat other competitors.
Their names have been edited in writing, but the proceedings allege that Facebook (now Meta) CEOs and COOMark Zuckerberg and Sheryl Sandberg, like Google CEO Sundar Pichai, each approved the deal in 2018. doing. Today, both companies dominate more than half of the $ 491 billion digital advertising market.
Both companies are involved in the plans claimed in separate statements to Politico, claiming that their advertising technology is designed to help advertisers and publishers rather than lining up their own pockets. Denied. Prosecutor Paxton tried three times to rewrite his complaint, but it was still full of inaccuracies and had no legal benefits, said Google spokesperson Peter Schotttenfels. There was fierce competition in online advertising, reducing ad tech fees and expanding the options for publishers and advertisers.
Since then, Facebook, rebranded to Metaecho, has changed its mind. Metas’ non-exclusive bidding agreement with Google, and similar agreements with other bidding platforms, helped intensify the competition for advertising, Meta spokeswoman Christopher Sgro. These business relationships allow Meta to offer more value to advertisers while rewarding publishers fairly, with better results for everyone.
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