Elizabeth Warren, Richard Blumenthal, Pramila Jayapal and Mondaire Jones are asking to investigate Google-Facebook deal
Jedi Blue program is suspected in suppressing the competition
Four Democrats members of Congress are asking to investigate whether a 2018 alleged agreement on Digital Advertising between Google and Facebook was in violation of the competition rules.
Senators Elizabeth Warren and Richard Blumenthal and two members of the House of Representatives, Pramila Jayapal and Mondaire Jones, have written to two Texas prosecutors asking if a federal trial would be appropriate here.
The agreement between the two internet giants would, according to representatives, be clearly contrary to competition law.
Prosecutors in ten states, led by Texas, started a lawsuit against Google over the program ‘Jedi Blue’ in December, The Wall Street Journal reported. With that program, Facebook and Google worked together to prevent advertisers, including competitors, from circumventing ads auctions on Google through so-called “header bidding.”
Google would have used its monopoly power to control prices. According to the Jedi Blue agreement, Facebook would get a fixed percentage of the ads the company wanted to buy from Google. In return, Facebook would participate less in ‘header bidding’ during ad auctions.
Google and Facebook deny that they are doing something wrong. Facebook’s director Adam Cohen says that there is no question of Google manipulating the auction for Facebook, and Facebook can only win an auction with the highest bid. Facebook is also aware of no harm.
If a legal case were to arise, the fine could amount to $ 100 million per company.