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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

US states' antitrust lawsuit against Google's advertising business keeps growing

(2021/11/16)


More than a dozen US states have filed yet another amended complaint against Google to include what they say is more evidence of the web giant abusing its dominant position in online advertising.

The legal spat spearheaded by Texas Attorney General Ken Paxton is an ambitious attempt to crack down on the super-corporation. Together, 16 states plus Puerto Rico have repeatedly amended their lawsuit to include more evidence that support their claims Google has violated the Sherman Antitrust Act to establish and maintain control of the online advertising industry.

"Just because Attorney General Paxton asserts something doesn’t make it true. This lawsuit is riddled with inaccuracies," a spokesperson for Google told The Register .

[1]

"There is vigorous competition in online advertising, which has reduced ad tech fees, and expanded options for publishers and advertisers. We will strongly defend ourselves from his baseless claims in court."

[2]

[3]

The latest filing, for one thing, includes more details of Google's so-called Project Bernanke, which was named after the former US Federal Reserve chairman and is described as a secret internal program starting in 2013.

Under Project Bernanke, it is claimed, Google relied on data it amassed from its position in the ad-tech world to ensure adverts booked via its ad system AdX would come out on top of auctions for ad space on websites. These auctions would include bids placed via third-party platforms and tools, which were at a disadvantage by not having access to the information Google had. Google didn't tell anyone about this data use, and that amounted to insider trading, the states claimed.

[4]

In just the first year of launch, the Bernanke program alone generated an extra $230m in revenue, the redacted filing

[5]PDF

stated. The lawsuit also claimed the system was upgraded to something called Global Bernanke in May 2015, and that a third version, dubbed Bell, brought in a further $140m a year.

[6]Google loses appeal against $2.7bn EU antitrust fine for distorting competition in price comparison websites

[7]Google swats away £3bn Safari Workaround ad-tracking cookie lawsuit in Supreme Court victory

[8]There, that wasn't so hard, was it? South Korea makes Google allow rival payment systems in Play store apps

[9]Google's 'Be Evil' business transformation is complete: Time for the end game

“AG Paxton mischaracterizes one of many improvements Google Ads has made to optimize advertiser bids,” the Google spokesperson continued to tell us.

“This was entirely implemented by Google Ads for buyers, using the kinds of data and strategies that are available to any buyer participating in an Ad Exchange auction. Like many other businesses, we constantly work to improve our products and compete more effectively. That's the kind of behavior that increases competition and makes ads more effective for businesses large and small.”

The antitrust allegations against the internet titan have ballooned to about 250 pages, all in all accusing Google of resorting to various underhand tactics and striking up dodgy deals with other large orgs over the years. A version of the lawsuit filed in October, for example, brought up [10]Jedi Blue , in which Google and Facebook allegedly colluded to "identify users using Apple products," and set up "quotas for how often Facebook would win publishers’ auctions."

It hasn't been the greatest of times for Google on the antitrust front. Last week, the EU's General Court [11]rejected the Chocolate Factory's appeal against a $2.7bn fine for favoritism toward its own online shopping services. If confirmed by the European Court of Justice, the record fine would constitute roughly 13 days of profit Google made in its latest quarter. ®

Get our [12]Tech Resources



[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YZOPZcQql4kFY50RJoscUQAAAMg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YZOPZcQql4kFY50RJoscUQAAAMg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YZOPZcQql4kFY50RJoscUQAAAMg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YZOPZcQql4kFY50RJoscUQAAAMg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://www.texasattorneygeneral.gov/sites/default/files/global/images/TAC%20-%20Redacted%20Version%20(public).pdf

[6] https://www.theregister.com/2021/11/10/google_shopping_ecj/

[7] https://www.theregister.com/2021/11/10/lloyd_v_google_judgment_supreme_court/

[8] https://www.theregister.com/2021/11/04/google_thirdparty_payments_apps_south_korea/

[9] https://www.theregister.com/2021/11/01/google_opinion_column/

[10] https://www.theregister.com/2021/10/22/google_facebook_antitrust_complaint/

[11] https://www.theregister.com/2021/11/10/google_shopping_ecj/

[12] https://whitepapers.theregister.com/



Can we please break them up?

ShadowSystems

Just point to the fact that they are no longer proud of the "Don't Be Evil" ethos they started with & are actively running around being as Evil as possible.

Just break them up, enforce that no part shall collaborate with any other, that no part can be run by any individual that is part of another, & then stuff the entire C-level suite of execs in prison to scrub toilets with their tongues for the rest of their lives.

Pretty please, with sugar on top?

Aren't most things in the USofA rigged?

Anonymous Coward

From Wrestling to other sports and onto the election of your local dog catcher?

Well... that's what the MAGA/GQP want us to believe isn't it?

Ad money rules the USA. You can't escape Ads in the US unless you live in the Alaskan wilderness. The whole society is based around ads.

Add in 'he who pays the piper' and you get the mess the place is in right now. i.e heading for civil war mk 2.

Google is in the place it finds itself today because of ads. Their natural desire to be No 1 (and ultimately the only ad slinger left in town) is to some extent suffocating commerce. If you can't afford to up your product in Google (and Amazon's) ranking which costs lots of $$$$$$$ then good luck lasting the next 12 months.

USA USA No 1 No 1. Says it all.

Yehhaaaa

Personally, I wish that google, FB, Amazon would all die a horrible death as companies but it ain't gonna happen.

Ok, you paid for Google shills, start downvoting in 5...4....3...2...1...0

Re: Ok, you paid for Google shills, start downvoting in 5...4....3...2...1...0

Anonymous Coward

Downvoted for calling pro-wrestling "rigged". It'd be rigged if the fans didn't know that it's a work, but they do, so it's not "rigged", it's entertainment.

Just an old bloke

Google Ads is vital if you sell to consumers online, there is no other game in town, Bing pick up the crumbs and the other routes to market are eye wateringly expensive. Our online ad costs have risen over the last 20 years from a reasonable level of 2-3% of cost of sales up to a painful 15-20%. Google manipulate the ad market, they are a monopoly in all but name and they are abusing their position.

Keeping on top of the SEO changes, controlling advert allocation and audience is a full time job, goal posts are changed regularly and often removed altogether. They constantly change the rules and oddly enough, their customer improvements and efficiency changes always involve spending more money, usually with the caveat “you may see a temporary increase in xxxx while changes take effect” but the increases somehow become permanent.

Google are evil.

msobkow

I have a feeling I won't live long enough to see what the final outcome of these suits are; it has taken well north of a decade and the Oracle-Google spat still isn't settled, so this one is likely to run until I'm well into my 70s, and I don't come from a long-lived family. *LOL*

"We will strongly defend ourselves from his baseless claims in court."

Pascal Monett

And we will watch carefully to see just how baseless the court sees those claims to be.

Your PR bullshit does not impress us.

"Don't be evil"

elsergiovolador

Reminds me of a mate who got tattooed "Don't drink" on his right hand.

He died of alcohol poisoning.

Is not that the nature of men and women -- that the pleasure is in the
learning of each other?
-- Natira, the High Priestess of Yonada, "For the World is
Hollow and I Have Touched the Sky", stardate 5476.3.