Google and Facebook CEOs allegedly involved in illegal ad deal
Facebook unnerved Google by promoting a method called “header bidding” that was a threat to Google. With “header bidding,” publishers offer inventory to multiple ad exchanges before calling their ad servers. By hiking demand for limited inventory, publishers make more money.
Facebook and Google signed an ad deal greenlit at the highest level of the companies
According to the complaint that was released on Friday, “Google understood the severity of the threat to its position if Facebook were to enter the market and support header bidding. To diffuse this threat, Google made overtures to Facebook.” The deal was made at the highest level of both companies and the complaint notes that “Google CEO Sundar Pichai also personally signed off on the terms of the deal.”
Facebook says that the deal with Google did not give them any advantage
Both Google and Facebook are under pressure for using anti-competitive methods. Google says that the lawsuit isn’t accurate, and company spokesperson Peter Schottenfels said, “We sign hundreds of agreements every year that don’t require CEO approval, and this was no different. And contrary to AG Paxton’s claims, the fact of this agreement was never a secret — it was well-publicized. It simply enables FAN [Facebook Audience Network] and the advertisers it represents to participate in Open Bidding, just like over 25 other partners do.”
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. “These business relationships enable Meta to deliver more value to advertisers while fairly compensating publishers, resulting in better outcomes for all.”
