The European Commission and the UK Competition and Markets Authority have launched a competition investigation against Google and Meta. In the statement, it was stated that there is suspicion that Google is blocking its competitors.
Google, the two biggest names in today’s internet, and Meta, the umbrella company of Facebook, Instagram and WhasApp, faced a major investigation today. The European Union Commission and the UK Competition and Markets Authority announced that the two companies launched a competition investigation after examining the agreement they made in 2018.
In its announcement today, the Commission stated that it will examine whether competition is hindered in online display advertising with the 2018 agreement called ‘Jedi Blue’. The ads in question include the ads we see on websites, mobile applications and social media.
Google may have wanted to thwart its competitors in the advertising space:
Andrea Coscelli, CEO of the UK Competition and Markets Authority, said in a statement that they suspect Google may have collaborated with Meta to thwart its competitors in advertising services. Along with the investigation announcement, a statement was also shared by Meta.
A spokesperson for Meta said in a statement, “Meta’s non-exclusive bidding agreement with Google and similar agreements we have with other bidding platforms have helped increase competition for ad placements. These business relationships enable Meta to deliver greater value to advertisers and publishers. “It leads to better outcomes for everyone. We will cooperate on both investigations.” While Meta made a statement defending the agreement, no statement has yet been received from Google.