Google, Facebook CEOs sign off on illegal ad deal

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The CEOs of Facebook and Google allegedly signed off on an illegal ad deal that stopped Facebook from threatening Google's advertising business.

. As a result, Facebook was given"information, speed, and other advantages" during auctions for ad space run by Google. Yesterday, unredacted court documents revealed the involvement of the two CEOs in the deal.

The documents are from a complaint originated by Texas and other states in December 2020 that accused Google of committing"false, deceptive, or misleading acts" while running its buy-and-sell auction system for digital ads. The complaint states that Google teamed up with Facebook in 2018 that Google called"Jedi Blue," a name that riffs on the Star Wars movie franchise.Facebook unnerved Google by promoting a method called"header bidding" that was a threat to Google.

The complaint also revealed that Facebook CEO Zuckerberg wanted to meet with the company's COO Sheryl Sandberg before making a decision. While employees' names were redacted in the court documents, their titles weren't.Both Google and Facebook are under pressure for using anti-competitive methods.

Facebook's corporate parent Meta agreed with Google that the deal between the two tech giants did not call for Facebook to receive any particular advantages that other companies were not being given."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," said Meta spokesperson Stephen Peters.

 

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