Google CEO Sundar Pichai was aware of anti-competitive ads deal with Facebook, Texas AG alleges
Court filings from the Texas attorney general’s office which have just been unsealed allege that top executives at Google and Facebook (now Meta) knew of and supported a deal that gave the social media giant a sweetheart deal on internet ads. They’re the latest revelation in the midst of a multi-state antitrust lawsuit against the search giant.
The Texas complaint (viaPolitico) claims that Facebook COO Sheryl Sandberg had a role in hammering out the 2018 deal known asJedi Bluewith communications from Sandberg and the negotiating team urging CEO Mark Zuckerberg to green-light it.
“We’re nearly ready to sign and need your approval to move forward,” an email to Zuckerberg said.
Google CEO Sundar Pichai — who has since ascended to CEO of parent company Alphabet — was also alleged to have given his personal thumbs-up.
Jedi Blue was supposed to keep Facebook from switching away from a bidding system on Google’s ad platforms, likely resulting in smaller revenues. Under the terms, Facebook would spend at least a minimum amount and Google would guarantee a win rate for its ad slot auctions. Previously revealed documents indicate Google employees were well aware of publicity risks if Jedi Blue came to light.
The initiative is just an element ofthe case laid by ten state attorneys generalagainst what they have called Google’s monopoly on the internet advertising market, filed back in 2020. Meta is not a party to the suit.
Reached for comment on the new details, a Google spokesperson denied Pichai’s role in pursuing Jedi Blue, saying that this deal was “no different” than the hundreds of other deals that the CEO doesn’t see.
A Meta representative defended the arrangement saying that it holds similar agreements with other ad provisioners and that they “increase competition” in the market while compensating publishers “fairly.”
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