The Wall Street Journal had reported on aspects of the draft complaint earlier.
The surge in recent antitrust proceedings against Google and Facebook has brought the lucrative deals between big tech to the fore. In October, the Justice Department sued Google and went on one Agreement with Apple Use Google as the pre-selected search engine on iPhones and other devices.
“This idea of the big technology platforms competing against each other is very exaggerated,” said Sally Hubbard, a former assistant attorney general in the New York City Anti-Trust Office who now works at the Open Markets Institute, a think tank. “In many ways they strengthen each other’s monopoly power.”
Google and Facebook were eliminated more than the half of all digital advertising spending in 2019. In addition to displaying advertisements on their own platforms like the Google search engine and the Facebook homepage, websites, app developers and publishers rely on the companies to secure advertising for their pages.
The agreement between Facebook and Google, codenamed “Jedi Blue” within Google, affects a growing segment of the online advertising market known as programmatic advertising. Online advertising generates hundreds of billions of dollars in global sales each year, and automated buying and selling of advertising space accounts for more than 60 percent of total sales. according to researchers.
In the milliseconds between when a user clicks a link to a web page and the ads load on the page, bids are placed behind the scenes for available ad space on marketplaces known as exchanges. The winning bid will be forwarded to an ad server. With both ad exchanges and Google’s ad server dominating, the company often led its own exchanges.
A method called header bidding was developed to reduce reliance on Google’s ad platforms. News agencies and other websites could collect offers from multiple exchanges at the same time, increasing competition and leading to better prices for publishers. According to information, more than 70 percent of publishers had adopted the technology by 2016 an estimate.
Google has developed an alternative called Open Bidding that supports an alliance of exchanges. While Open Bidding allows other exchanges to compete with Google at the same time, the search company charges a fee for each winning bid, and competitors say there is less transparency for publishers.