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The Jedi Blue agreement was initially secret, but multiple North American companies denounced Google and, in the documentation of the trials, this agreement came to light.
Margrethe Vestager, vice president and European commissioner for European competition, explained that through the Jedi Blue agreement these companies limited the scope of competitors within Google’s open bidding.
Social networks and Internet search engines have been closely watched by various regulators, for example the Europeans who have focused on Google and Facebook since the past, for which they have opened investigations. The European Union recently announced that it has opened an investigation into the Jedi Blue agreement, signed by the technology giants, due to alleged “anti-competitive practices in the advertising market.”
According to data from Statista, Google has positioned itself as one of the largest technology companies worldwide, always occupying the top positions in the rankings. On an economic level, the increase in income since 2002 has been astronomical, reaching over 180,000 million dollars in 2020. For its part, Facebook managed to increase its number of users by 59 million between the first and fourth quarters of 2021.
What is the advertising pact between Google and Facebook?
the deal Jedi Blue was initially secret, but multiple North American companies denounced Google and, in the documentation of the trials, this agreement came to light.
That is why the investigation announced by the EU and the UK Competition and Markets Authority (CMA), focuses on the accusations related to Jedi Blue, which is a pact between Google and Facebook, by which they agreed on the prices of advertising in “both companies and excluded those who could compete for advertising space.”
For her part, Margrethe Vestager, Vice President and European Commissioner for European Competition, explained that through of the Jedi Blue agreement these companies limited the reach of competitors within Google’s open bidding, which reduced the impact of their ads in apps and websites.
The objective of this commission will be to investigate the scope of this pact, as well as to know if it concentrated the advertising market to the detriment of rivals Google and Facebook.
Said agreement shows favorable treatment towards Facebook by Google, as well as market monopolization conduct.
Recall that information about the draft of this agreement was published by The New York Times, and it clarifies a series of concessions to the social network in exchange for its cooperation and assistance in the case of an investigation, as well as the cessation of rivalries. While the advantages offered to Facebook are unfavorable for the other participants of the Open Bidding service.
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