The extra $9 in between the 2 quotes, Google put into a “pool” that it would use to secretly raise the quotes by advertisers using its tools to guarantee they would constantly triumph over advertisers utilizing non-Google tools. pic.twitter.com/gE5O8Yvvbv
— Leah AntiTrustButVer1fy Nylen & #x 1f427; (@leah_nylen) January 14, 2022

The state attorneys general-led antitrust claim against Google over its marketing practices resembles a picture slowly entering focus.
On Friday afternoon, a modified grievance filed in 2015 was unsealed in a New York district court revealing even more details about Project Bernanke, a Google program to use info originating from publisher advertisement servers to boost Googles own ad-buying technologies.
The brand-new filing goes much deeper on Googles alleged plan to mislead advertisers and publishers about the systems of its advertisement auction.

A heavily redacted claim, led by Texas AG Ken Paxton, was initially filed in December 2020, followed by an amended variation, also edited, over the summer.
In October, a judge in New York unsealed the suit, which revealed many juicy information, consisting of Googles AdX take rate (which is in between double to quadruple its nearest rivals), Googles penchant for purposely slowing the load times of non-AMP advertisements and more info on Jedi Blue, the secret program to partner with Facebook as part of an effort to eliminate header bidding.
Price control
What was in fact occurring?
As lots of publishers ruefully suspected for years, Google appears to have been participating in a third-price auction of sorts. From its advantaged position on both the demand side and the sell side, Google could see all of the bids being available in.
Google Ads (previously known as Google Display Network) would then pay publishers based on the most affordable bid, charge advertisers based on the greatest quote. Google just used this program, “Global Bernanke,” when buyers bought through Googles SSP, AdX, where it had full visibility into all the quotes and might utilize that information to tip the scales in its favor.
The result was the program synthetically decreased bid density and synthetically decreased clearing costs. In any case, publishers lose out.
Blue streak
The new problem likewise declares that Google CEO Sundar Pichai and Facebook (great! Meta) CEO Mark Zuckerberg approved the 2018 Jedi Blue pact whereby Facebook concurred not to produce its own header bidding item in exchange for Google providing Facebook details along with speed and other benefits in auctions.
Due to the fact that it offered rival exchanges the capability to compete with Google on a more equal footing, the increase of header bidding around 2015 was a huge hazard to Google.
The previously unredacted fit referrals an email sent by an unnamed Google executive who composed that header bidding had the potential to lower Googles revenue margins to around 5% from 20%, therefore threatening Googles capability to justify its costs.
Google then allegedly hatched a strategy to squash header bidding by striking partnerships and developing software to secure its position, including Open Bidding, which enabled publishers to route their inventory to multiple exchanges at the very same time.
The function of the general “Jedi” program, so called since Google was playing a “Jedi mind technique” on the industry, was to get publishers to stop utilizing header bidding by themselves.
Facebook is not called as an accused in the lawsuit against Google … although it has been called as a defendant in multiple other antitrust cases, including one submitted by the Federal Trade Commission which just recently received a judges true blessing to move forward.
And on Friday, a coalition of state AGs submitted an appeal arguing versus a district courts judgment over the summer season dismissing its complementary Facebook antitrust case. TBD on that one.
A Google spokesperson informed Politico that the Texas-led complaint “is still loaded with errors and does not have legal benefit” which Googles “advertising technologies help apps and websites fund their content and enable small organizations to reach customers worldwide.”
Get captured up
Google Misled Publishers and Advertisers, Unredacted Lawsuit Alleges (WSJ, Jan. 2022).
Supremacy And Collusion: Inside The Unredacted Antitrust Lawsuit Against Googles Ad Tech Business (AdExchanger, Oct. 2021).
What Pubs And Ad Tech Really Think Of Googles Project Bernanke (AdExchanger, April 2021).
Texas AG-Led Antitrust Complaint Against Google Alleges Anticompetitive Advertisement Tech Policies, Collusion With Facebook (AdExchanger, Dec. 2020).

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