States Allege Google, Facebook CEOs Colluded in Online Ad Sales

Google lawsuit

Newly released details of a lawsuit filed against Google revealed the division of Alphabet Inc. colluded with rival Facebook to manipulate online advertising sales, The Wall Street Journal reported. 

The complaint, led by Texas Attorney General Ken Paxton, was joined by the attorneys general of more than a dozen states. It said Google conducted “anti-competitive” behavior when it collaborated with the social networking company.  

The new details contained in the suit were released Friday (Jan. 14) in the U.S. District Court of the Southern District of New York after a federal judge ruled the complaint could be made public.

The complete document provides details on the involvement of Alphabet CEO Sundar Pichai and Meta CEO Mark Zuckerberg in approving the deal. Facebook now calls itself Meta.

The attorneys general argue Meta Chief Operating Officer Sheryl Sandberg was “explicit that ‘this is a big deal strategically’” in an email thread about the deal that included Zuckerberg. The names of the Meta executives are still redacted in the suit, but their titles are visible. 

Originally filed in 2020, the unredacted document from the state-led antitrust lawsuit against Google alleged Pichai and Zuckerberg approved the deal. The complaint alleges that Google used its digital advertising business to harm consumers. 

At the time, Paxton’s office tweeted: “This internet Goliath used its power to manipulate the market, destroy competition, and harm YOU, the consumer.” He said Google had engaged in “anticompetitive conduct, exclusionary practices and deceptive misrepresentations,” using its advertising monopoly to control pricing and rig advertising auctions. 

For more: Google Faces Lawsuit From Multiple States Over Digital Ad Tactics 

Google disputes the suit. Google spokesperson Peter Schottenfels said the claim is “full of inaccuracies and lacks legal merit,” WSJ reported. 

Meta spokesperson Chris Sgro told the Associated Press that the company’s ad bidding agreement with Google and similar agreements with other platforms have increased competition for ad placements.