Suspicion that CEO Pichai and CEO Zuckerberg were involved in the collusion between Google and Facebook emerged



A new court evidence document was submitted on January 14, 2022 in connection with a lawsuit filed by attorneys general of each state in the United States, claiming that ``Google is violating the antitrust law.'' From this document, the possibility that Google CEO

Sundar Pichai and Meta CEO Mark Zuckerberg were directly involved in a project to maintain the dominance of Google and Meta (then called Facebook) in the advertising market. is emerging.

THIRD AMENDED COMPLAINT
(PDF file) https://www.documentcloud.org/documents/21179902-3rd-complaint-for-texas-google-antitrust-case

Zuckerberg and Google CEO approved deal to carve up ad market, states allege in court - POLITICO
https://www.politico.com/news/2022/01/14/facebook-google-ad-market-lawsuit-527108

Mark Zuckerberg and Sundar Pichai were involved in ad collusion plot, claims court filing - The Verge
https://www.theverge.com/2022/1/14/22883987/mark-zuckerberg-sundar-pichai-ad-collusion-tx-ag-paxton-complaint

Lawsuit: Google, Facebook CEOs colluded in online ad sales - ABC News
https://abcnews.go.com/Technology/wireStory/lawsuit-google-facebook-ceos-colluded-online-ad-sales-82273527

In December 2020, a coalition of Attorneys General led by Texas Attorney General Ken Paxton filed a lawsuit , claiming that ``Google violates the antitrust law.'' The lawsuit also pointed out that it had entered into an anti-competitive agreement with Facebook in connection with its monopoly on the advertising market, and documents submitted as evidence in the trial revealed various plans Google had launched. increase.

Google operates ' Ad Exchange (AdX) ', one of the ad exchanges that facilitates the buying and selling of advertisements across multiple ad networks. However, regarding the situation where Google, which is both a seller and a buyer of advertisements, operates AdX, it has been criticized that ``Google is like a baseball pitcher, batter, and referee.'' In recent years, in order to reduce Google's dominance in the ad auction system, a system called header bidding (header bidding), which conducts auctions simultaneously for multiple ad exchanges, has been introduced. 70% of online publishers used header bidding.

Google, which recognized that header bidding threatened its own advertising system, was aware of the risk of collecting criticism if it was disclosed to the outside, and launched a program called 'Jedi' that zeroes out only Google's fees in AdX. introduction. Furthermore, when Facebook adopted header bidding in 2017, it started a program called `` Jedi Blue '' that collaborated with Facebook to maintain its dominance in the advertising market. 'Jedi Blue' is to increase the frequency with which Facebook can win bids in advertising space auctions, and the lawsuit 'literally manipulated the auction by setting the frequency and minimum amount that Facebook bids and wins.' It is pointed out.

Details of measures 'Jedi Blue' and 'Project NERA' for Google to monopolize the Internet advertising market revealed - GIGAZINE



A 2019 study found that not only did Facebook win more ads in Google auctions than other platforms, but the average price paid per in-app impression was lower in Google-run auctions than other platforms. It is reported that it has become clear.

And on January 14, 2022, in response to a New York judge's decision that ``additional details should be disclosed,'' the coalition of state attorney generals released a new version of the evidence document with fewer blackout corrections. published. In the document, Meta (then Facebook) COO Sheryl Sandberg helped negotiate 'Jedi Blue,' urging Zuckerberg to approve it by calling it a 'major strategic issue.' is shown. The team that negotiated the deal said in an email to Mr. Zuckerberg, ``We are ready to sign and need your approval to move forward.''

In the complaint, Zuckerberg sought a meeting with Sandberg and other executives before making a decision, and in September 2018, Sandberg and Google's senior vice president signed a contract for 'Jedi Blue.' said. Google's Pichai also personally signed the terms of the deal, the Attorneys General alleges.

Meta spokesman Chris Sgro said similar deals with Google and other bidding platforms increased competition for ad placements. ``With these business relationships, Meta will provide more value to advertisers while fairly compensating publishers, resulting in better results for everyone.''

In response to the Attorney General's allegations, Google spokesman Peter Schottenfels said, 'It's riddled with inaccuracies and lacks legal merit.' It helps raise capital and enables small businesses to reach customers around the world.The competition in online advertising is fierce, the cost of using ad technology is falling, and the options for publishers and advertisers are expanding.” argued. He also denied that Pichai had a hand in approving the deal, saying, 'We sign hundreds of contracts every year that don't require the CEO's approval, and so does the 'Jedi Blue' contract. was.”



In addition, the Wall Street Journal also found that there were three versions of ' Project Bernanke ', which gives Google an advantage over its ad buying system, from newly released documents, and that Google employees were involved in advertising-related projects. It is reported that it turned out to be a concern.

Google Misled Publishers and Advertisers, Unredacted Lawsuit Alleges - WSJ
https://www.wsj.com/articles/google-misled-publishers-and-advertisers-unredacted-lawsuit-alleges-11642176036

in Note, Posted by log1h_ik