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The media learned about the secret “advertising” agreement between Google and Facebook




Back in 2018, the American companies Facebook and Google agreed not to compete in the online advertising market, although even then they knew that this could lead to antitrust proceedings.





This was reported by The Wall Street Journal with reference to the statement of claim by the prosecutor's office.

As part of the agreement, Facebook agreed not to compete with Google tools in exchange for special rights and privileges in their use.

It follows from the document that Facebook has pledged to spend at least $500 million per year on Google advertising auctions starting in the fourth year after the deal was concluded — as a result, a fixed percentage of these auctions would win.

The publication writes that in internal documents Facebook called the deal “relatively inexpensive” in comparison with direct competition. Google also feared competition, so the deal was beneficial for both parties.

It is noted that the two companies already then understood that their agreement would lead to antimonopoly proceedings. Therefore, we discussed the course of our actions in advance.

At the same time, Google said that agreements on the action in the event of a threat of antitrust measures are very common. The company called the accusations against her “inaccurate.”





“We do not manipulate auctions. (Facebook) participation is not exclusive, they do not receive data that is not available to other buyers,” said a Google spokesman.

Facebook has also denied the allegations, arguing that its ad bidding agreements provide choice and create benefits for advertisers, publishers, and small businesses.

“Any claims that this is detrimental to competition, or any assumptions of unfair behavior on the part of Facebook are not substantiated,” said there.

As previously reported, US Attorney General Ken Paxton is filing a lawsuit against Google on behalf of several states for providing false information and violation of competition rules.

We also wrote that the US Department of Justice accused Google of unfair competition and on October 20 sued the company.



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TAGS: GOOGLE, FACEBOOK, AGREEMENT

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