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Google defends its partnership with Facebook

 


Google opposed claims by a group of prosecutors, led by Ken Paxton of Texas, that the partnership on buying ads with Facebook was uncompetitive.

In one blog post, Google's economic policy director, Adam Cohen, described the Republican-led lawsuit from 10 republican-led states as misleading.

The blog represents Google's most comprehensive response to the lawsuit, and is also the only one to call Facebook a co-conspirator, although it did not mention Facebook as a defendant.

The blog follows an article in The New York Times describing more details about the alleged partnership, citing the unredacted draft complaint.

According to that version of the complaint as described by the Times, a Google executive saw an existential threat in Facebook's 2017 ad that it was testing the transition to advertising space.

Facebook was considering an ad purchase project that would allow publishers to circumvent reliance on Google's platforms.

The project ended when the two companies reached an agreement in 2018 that Facebook would become a partner in Google's Open Bidding project, which allows competing ads to be shared with their own offerings, but takes a fee from the winning bids.

That agreement was in contrast to other agreements offered to coalition partners, according to members interviewed by The Times.

Google allegedly gave Facebook more time to offer ads than other members of the alliance.

It is also alleged that Google has offered Facebook more ideas about who will be the recipient of the ads and the guaranteed profit rate for the offers.

The documents showed that the parties had agreed to cooperate and assist each other in the event of a competition investigation.

 In the blog post, which respond to these allegations, Cohen defended Open Bidding as a tool for publishers.

Cohen wrote that Open Bidding addresses some of the problems with offers, such as slow download pages, and that offers to remain a growing market, citing the 2019 eMarketer report.

Cohen noted that Google's agreement with Facebook was widely reported at the time, and said it allows Facebook and advertisers to participate in Open Bidding.

Cohen wrote that the agreement does not prevent Facebook from following up on bids and continues to require the company and its ad network to make the highest winning offer.

He also said: Google's fees to advertisers are lower than the industry average, and there is a lot of competition in this area.

A Facebook spokesman said in a statement: "Such partnerships are common in the industry, and we have similar agreements with many other companies.

"Facebook continues to invest in these partnerships and create new partnerships, helping to increase competition in ad auctions to achieve the best results for advertisers and publishers, and any suggestion that these types of agreements are detrimental to the competition is unfounded."

Source :howtoassetmanage.com

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