Google has been misleading advertisers and publishers in the auctions for its ads for years. That is stated in an indictment of more than ten American states, which became completely public on Friday. The case has been going on since the end of 2020.
Google collected the difference between what it told advertisers and publishers what an ad cost. The company then manipulated new auctions with that money, the indictment says. Google denies the allegations.
The way advertisements are traded on the Internet is a complex process. Google plays a major role in this as administrator of the auctions, but also as a participant. It also owns platforms such as YouTube, which reach consumers. This can exclude competitors, critics say.
The indictment also states that Google CEO Sundar Pichai and Facebook CEO Mark Zuckerberg authorized a deal in 2018 that agreed that Facebook would win a certain percentage of the auctions, which Google has also denied. The deal would allow Facebook customers to place more ads than customers of other Google partners. The two companies also allegedly agreed on price levels for advertisements, the complaint said. And Facebook is said to have agreed to withdraw from supporting software from Google’s competitors.
At the end of 2020, it was already announced that a number of American states, including Texas, were taking Google to court for alleged abuse of power with its advertising services. The lawsuit against Google followed a separate claim from the US Department of Justice. He claims that Google has illegally obtained a monopoly with its search engine. Google did this by barring competitors from important distribution channels.
Google accused of misleading advertisers and publishers
Source link Google accused of misleading advertisers and publishers