Former Facebook Executive Reveals Secret Agreement with Google in Antitrust Trial

In the ongoing antitrust trial against Google, a former Facebook ad executive, Brian Boland, testified that Facebook's attempts to compete with Google in online advertising were futile due to Google's dominant position. Boland revealed a secret 2018 agreement between Facebook (now Meta) and Google, dubbed "Jedi Blue." This pact granted Facebook preferential treatment in Google's ad auction system, ensuring it could secure better ad placements.

Boland likened Google's ad platform to a box of apples, where Google picks the best 30 before others can choose. This metaphor underscores Google's ability to monopolize premium ad space, leaving inferior options for competitors.

The agreement, approved by top executives at both companies, was designed to keep Facebook from adopting technologies that could challenge Google's dominance. Despite its significance, the deal's specifics remain undisclosed, with only a mention of Facebook potentially paying 15% of its effective media cost to Google.

Other witnesses, including former News Corp. executive Stephanie Layser, corroborated Google's monopoly in ad tech. Layser noted that News Corp. estimated a $9 million loss if it abandoned Google's ad services, highlighting the industry's reliance on Google.

Google defends its practices, claiming publishers now use multiple platforms. However, Gannett's ad executive Tim Wolfe testified that alternatives to Google's ad server remain impractical.

This trial exposes the intricate web of agreements and monopolistic practices in the digital ad market, raising questions about fair competition and market integrity.