08:41 16th Jan, 2022
Goobook (Google & Facebook) accused of monopolizing ad market | TechTree.com
Goobook (Google & Facebook) accused of monopolizing ad market
Google & Facebook colluded illegally to dominate the online advertising market.
An anti-trust lawsuit filed by a coalition of US states says that Google monopolized the ad tech market, and manipulated the tools used to buy, sell and display online ads.
Legal documents filed in New York court state that “Google CEO Sundar Pichai also personally signed off on the terms of the deal.”
Negotiators from Google sent the deal to Zuckerberg and communicated the following in an email: “We’re nearly ready to sign and need your approval to move forward.”
Facebook executive Sheryl Sandberg and CEO Mark Zuckerberg were also named in the legal document, and Zuckerberg apparently directed Sandberg to approve the deal.
Facebook is not named as a defendant in the lawsuit, but it soon may join it’s partner in crime in being sued.
The lawsuit states that Google systematically derailed competitors by manipulating ad auctions – the super sophisticated system that determines which ads appear on web pages.
Goobook (Google & Facebook) have predictably denied any wrongdoing.
Google basically said that their technology is a blessing for businesses:
“Our advertising technologies help websites and apps fund their content, and enable small businesses to reach customers around the world. There is vigorous competition in online advertising, which has reduced ad tech fees, and expanded options for publishers and advertisers.” – Google spokesperson Peter Schottenfels
Facebook basically said that they have a perfectly legal relationship with Google:
“Meta’s non-exclusive bidding agreement with Google and the similar agreements we have with other bidding platforms, have helped to increase competition for ad placements. These business relationships enable Meta to deliver more value to advertisers while fairly ompensating publishers, resulting in better outcomes for all.” - Meta spokesperson Christopher Sgro
Google ad revenue is expected grow, but its overall share of the booming online ad market is being challenged by competitors like Facebook.
Perhaps this is one of many reasons Google entered into an intimate business relationship with Facebook, as it is better to keep your enemies as close as possible.
The objective of the lawsuit is to break up the behemoth that Google has become.
The lawsuit states that Google internally refers to the collusion as ‘Jedi Blue’, a reference to the color of Facebook’s logo.
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