Tuesday, December 22

Google, Facebook reportedly agreed to work together to fight antitrust probes

A traffic signal in front of Google HQ indicates that pedestrians should not walk.

Enlarge / Signage in front of a building on the Google campus in Mountain View, California, on Wednesday, Dec. 16, 2020. (credit: David Paul Morris | Bloomberg | Getty Images)

More than three dozen state attorneys general last week filed an antitrust suit against Google, accusing the tech behemoth of a slew of anticompetitive behaviors. Among those behaviors, a new report finds, is an explicit agreement from Google to work with Facebook not only to divide the online advertising marketplace, but also to fend off antitrust investigations.

Facebook and Google agreed in a contract to "cooperate and assist each other in responding to any Antitrust Action" and "promptly and fully inform the Other Party of any Governmental Communication Related to the Agreement," according to an unredacted draft copy of the lawsuit obtained by The Wall Street Journal.

The final version of the suit made public last week (PDF) alleged that Google and Facebook signed a secret agreement in 2018 that "fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers' Web display and in-app advertising inventory."

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