Multistate lawsuit accuses Google of misleading publishers and advertisers

A lawsuit filed by more than a dozen state attorneys accusing Google LLC of misleading publishers and advertisers, Wall Street Journal. reports today.

Google denied the allegations in a statement issued Friday stating “Similar, baseless allegations concerning Google’s conduct have been made more than once.

A team of senior state attorneys, led by the Second Counsel in Texas, Ken Paxton, filed a lawsuit against the investigating officer in December 2020. About a year later, the case file was released in a highly modified form. The allegations that Google misled publishers and advertisers were reflected in a statement released today.

According to the Wall Street Journal, this search giant is said to have run a number of internal programs that have unfairly promoted its marketplace in the online advertising market. Instead, the lawsuit alleges that Google reduced its publisher fees and increased advertising costs.

The first of the programs described in detail in the case is called Project Bernanke. The app is said to have had three versions launched by Google between 2010 and 2019.

The first brand focused on AdX, Google’s ad exchange, which enables brands to purchase advertising space on the publishers’ page. In some cases, a search engine claims that it causes publishers and advertisers to believe that they are participating in what is known as second-rate marketing, when this is not the case.

Second-priced marketing is an advertising competition in which several companies offer real estate advertising. The winner pays the second highest price than the highest prize. According to the lawsuit, Google sometimes managed to sell ads differently and allow a third party advertiser to win instead of the second-largest advertiser. This, he says, resulted in publishers earning less money from advertising.

In some cases, Google claims to still charge advertisers for a second-highest price and set up a discount. The researcher is also accused of using excessive profits to promote businesses made by companies that use his advertising tools.

The lawsuit alleges that Google’s system crashed into billions of advertisements each month. According to senior government lawyers, Google’s internal research confirmed that some publishers had a 40% drop in their income.

The legal case that was released today also contains information of two types of Project Bernanke. According to the complaint, one brand increased the ads created through the Google Ads Google tool when it appeared that the ads were about to lose business. A third category of software, it claims, punishes publishers who do not give Google the opportunity to “choose” their advertisers.

The lawsuit also relates to two other programs that Google allegedly used to expand its market. These programs are called Reserve Price Optimization and Dynamic Revenue Share, respectively.

Reserve Price Optimization is said to have led retailers to pay for advertising prices. The program used many of the companies’ past businesses to set lower prices on what the companies could do. The purpose of Dynamic Revenue Share, is believed to have put Google’s advertising tools on the sidelines while a search giant competed with advertising companies and competing advertising companies.

Another target in the lawsuit is the Jedi Blue agreement that Google allegedly signed with Meta Platforms Inc., known as Facebook Inc., in 2018.

The deal is said to have barred Meta from spending at least $ 500 million on Google’s advertising campaign since the fourth year of the deal. Jedi Blue says it has also confirmed that social networking sites have won sales revenue. According to the Journal, the main lawsuit against state attorneys Alphabet Inc. Chief Executive Officer Sundar Photosi and Meta colleague Mark Zuckerberg have personally ratified the agreement.

Google has denied the allegations in a statement issued Friday. “Although Attorney General Paxton has tried three times to rewrite his appeal, it is still erroneous and lawless,” a Google spokesman said. he tells Politics. “Our advertising technology enables websites and apps to pay for what they have, making small businesses more accessible to customers around the world. There is greater competition in online advertising, which has reduced advertising costs, and more options for publishers and advertisers.”

Regarding a deal that he allegedly signed with Meta, Google said “we sign hundreds of deals every year that do not want to be approved by the CEO, and this was no different.”

Meta also provided information about Jedi Blue. “Meta-non-affiliated partnerships with Google and similar alliances we have with other platforms have helped to increase advertising competition,” the company said. “These business partnerships enable Meta to make more money for advertisers while paying better for the publishers, which makes everyone more successful.”

The lawsuit against Google is set to be heard later this year.

Image: Google

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