Having taken a dominant position in the market, the companies allegedly shared it.
Authorities in ten US states believe that Facebook and Google have agreed not to compete with each other in the online advertising market and have effectively divided it, Texas Attorney General Ken Paxton said in a statement.
Facebook allegedly gained access to certain market segments, but Google retained its dominant position. In particular, the companies coordinated actions at the auctions where advertising orders were distributed, the plaintiffs say. This allowed Google to inflate its ad prices.
The state officials called it anti-competitive, misleading practices that “limited publishers’ ability to monetize content, increase advertiser costs, and directly harm consumers.”
Google is a trillion dollar monopoly that brazenly abuses its power to the point of forcing Facebook’s management to agree to a contractual arrangement that undermines the competitive process.
Attorney General of Texas
A Google spokesman called the allegations unfounded and said the company would be defended in court. The plaintiffs include Texas, Idaho, Arkansas, Kentucky, Indiana, Mississippi, Missouri, North and South Dakota, and Utah.