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Google provides Facebook special advertising rights

2022-01-17 17:50 by


On Friday, a coalition of state attorneys general led by Texas Attorney General Ken Paxton released a new antitrust complaint against Google, giving more details into the company's alleged collusion with Facebook in programmatic ad markets.

Google CEO Sundar Pichai and Meta chief exec Mark Zuckerberg personally signed off on an illegal advertising deal, dubbed "Jedi Blue" in 2018. The contract has now been made public in the wake of court filings and by US Magazine BuzzFeed evaluated.

The matter concerns the allocation of advertising space by Google. Basically, the advertising placements are awarded by auction – whoever bids the most gets the most attractive positions and target groups. With this process, Google became the leading marketer of online advertising.

Most of the allegations in the suit hinge on Google's fear of "header bidding," an alternative to its own ad auctioning practices described as an "existential threat" to the company.

Facebook, which has since become Meta Platforms Inc, said in a statement that the deal was not exclusive to Google, and that other agreements have increased competition for ad placements. It said it was better for advertisers "while fairly compensating publishers."

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