Google Facing Anti-Trust Accusations

Issue 66

In light of the Texas antitrust lawsuit against Google, the tech giant is being accused of creating a secret project known as “Project Bernanke” that could be used to dominate the digital marketing industry and create a monopoly over digital advertising.

Project Bernake collects and analyzes previously held bids provided by Google for ads on the company’s leading sites, such as YouTube.  90% of large publishers use Google to sell their digital ad space, and Project Bernake allegedly gives Google data that indicates what exactly these publishers are selling their ad space for.  Google is then able to use that information and determine what buyers are willing to pay for specific ad space.

In the lawsuit, Texas argues that this is a form of insider trading that allows Google to dominate the ad space market and goes against antitrust laws put in place to limit monopoly.

Google defends itself by stating that while Project Bernake does exist, the use of this data is in no way inappropriate - as it is simply another method of examining a market and determining the value of a service.

Peter Schottenfels, a Google spokesman argues that in many ways Google doesn’t even have an advantage.  Texas has argued that data from 2013 that shows Google was expected to make $230 million in revenue that year by utilizing the information provided by Project Bernake.

Source: The Verge