What is Jedi Blue, the secret pact between Google and Meta that they must now justify before the European Commission

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That secret pact between Google and Meta (Facebook) may have consequences. The European Commission has announced that it will investigate these two companies again, this time for agreeing on prices and excluding services that could compete in the field of advertising. This agreement dates back to 2018 and is known as Jedi Blue.

Margrethe Vestager, VP of European Competition, explained that through this agreement the scope of any competitor of Open Bidding Google reducing the impact of your ads on apps and websites. Now the objective of the Commission is to investigate the scope of that agreement and if that decision ended up concentrating the advertising market, to the detriment of its rivals, the publishers and therefore, consumers.

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What is Meta’s role in this deal? The goal is that Facebook gained advantage in ad auctions, in exchange for word that Facebook would finalize its own plans of advertising services.

The deal was initially secret, but multiple US companies reported to Google and finally, in the documentation of the trials, it came to light this agreement. Now, after being investigated in the United States, he arrives in Europe.

According defended Google spokesman Peter Schottenfels told the WSJ: “This lawsuit is riddled with inaccuracies and our ad tech fees are actually lower than industry averages.” In the case of Facebook, its spokesman, Christopher Sgro, argued that the deal had increased competition. A similar argument that must now convince the European Commission. Google’s current position is that the allegations in this settlement are false. and Facebook received no competitive advantage.

In addition to the Commission, the UK Markets Authority (CMA) has also launched a parallel investigation against Google and Meta.

According describe ApplyData, the name of Jedi Blue could have its origin in comments from some Google employees which described the process of dissuading some advertisers as a Jedi mind trick, from Star Wars. An idea that would have ended up becoming the expression Jedi Blue, to refer internally to this agreement with Facebook.

Image | Mitchell Luo

That secret pact between Google and Meta (Facebook) may have consequences. The European Commission has announced that it will investigate…

That secret pact between Google and Meta (Facebook) may have consequences. The European Commission has announced that it will investigate…

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