EU Commission investigating ad agreement Google/Meta
The European Commission announced it will investigate if an agreement between Google and Meta for online display advertising services may have breached EU competition rules. ”If proven, the practices under investigation may breach EU competition rules on anticompetitive agreements between companies and/or the abuse of a dominant position”, the Commission says. Both companies protested and made statements saying their agreement increases competition.
”The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.”
”Many publishers rely on online display advertising to fund online content for consumers. Via the so-called “Jedi Blue” agreement between Google and Meta, a competing technology to Google’s Open Bidding may have been targeted with the aim to weaken it and exclude it from the market for displaying ads on publisher websites and apps, the Commission´s vice president Margrethe Vestager said in a statement.
”If confirmed by our investigation, this would restrict and distort competition in the already concentrated ad tech market, to the detriment of rival ad serving technologies, publishers and ultimately consumers.”
Google provides advertising technology services that intermediate between advertisers and publishers by real time auctioning of online display advertising space on web sites or mobile apps, including through its ‘Open Bidding programme’.
Meta provides online display advertising services and, through its ‘Meta Audience Network’, participates in auctions for third party publishers’ advertising space using Google’s and rivals’ advertising technology services.
The Commission investigation concerns a September 2018 agreement, which Google code-named “Jedi Blue”, between Google and Meta for the participation of Meta’s Audience Network in Google’s Open Bidding programme. The Commission says it is concerned that the agreement may form part of efforts to exclude ad tech services competing with Google’s Open Bidding programme, and therefore restrict or distort competition in markets for online display advertising, to the detriment of publishers, and ultimately consumers.
The UK’s Competition Market Authority (‘CMA’) has launched its own investigation into the agreement between Google and Meta.
“As customary, the Commission has been in contact with the CMA and intends to closely cooperate on this investigation following the applicable rules and procedures.”
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.
