Google Facebook Deal

Two Massachusetts companies propose a class-action suit against Google for entering into an agreement with Facebook to drive ads to them and hinder competition, thus violating anti-trust law.

In online advertising, Google has retained its dominance by this deal with the Facebook. There are virtual auctions that determine whose ads appear where in programmatic buying. There is a header bidding system devised in 2014. It enables publishers to direct a user’s browser to solicit real-time bids from multiple exchanges. Such bids should not be restricted to Google’s exchange. Facebook adopted this system, but in 2018, it entered into a deal with Google. It agreed to limit its programme in return for preferential treatment in Google’s ad business. Google has thus restrained the competition through an agreement with Facebook.

The two companies claim that Google is responsible for all the damages advertisers suffer.

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