The Wall Street Journal reported on aspects of the earlier draft complaint.
The rise of the recent antitrust lawsuits filed against Google and Facebook has caught the attention of lucrative transactions between Big Tech. In October, the Justice Department sued Google and entered into a deal with Apple to make Google the pre-selected search engine on iPhones and other devices.
Sally Hubbard, a former assistant attorney general at New York’s antitrust office, now at the Open Market Institute, a consulting firm said: “The idea is that big tech platforms are on the edge. Strong competition is too much. “In many ways, they reinforce each other’s monopoly power.”
Google and Facebook account for more than half of all digital ad spend in 2019. In addition to displaying ads on their own platforms, such as Google’s search engine and Facebook homepage, pages Web, app developers and publishers rely on companies to secure advertisements for their pages.
The agreement between Facebook and Google, code-named “Jedi Blue” inside Google, concerns a growing segment of the online advertising market known as programmed advertising. According to the researchers, online advertising brings in hundreds of billions of dollars in global revenue each year, and the buying and selling of automated ad space accounts for more than 60% of the total.
In the milliseconds between when a user clicks a link to a website and the page’s ad is loading, the bid for the available ad space is placed behind the scenes in markets known as exchanges, with bids Winnings are routed to the ad server. Because Google ad exchanges and ad servers both dominate, it often directs the business to its own exchange.
A method known as title bidding has emerged, partly as a solution to reduce reliance on Google’s advertising platforms. News stores and other websites can attract bids from multiple exchanges at the same time, making them more competitive and leading to better prices for publishers. According to one estimate, by 2016, more than 70% of publishers have adopted this technology.
Realizing the potential for significant business losses to title bidding, Google developed an alternative called Open Bidding, which supports an exchange alliance. While Open Bidding allows other exchanges to compete with Google at the same time, the search company charges a fee for any winning bids and competitors assume the publisher will be less transparent.