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Googles secret ‘Project Bernanke’ has revealed on Texas case

The program, known as “Project Bernanke,” was not disclosed to publishers who sell ads through Google Advertising Purchases. It has generated hundreds of millions of dollars in corporate profits every year, documents show. In its lawsuit, Texas alleges that the project provided Google, a unit of Alphabet Inc., with unfair competitive advantage over rivals.

The documents filed this week were part of Google’s first response to a Texas anti-trade lawsuit, filed in December and accused the search company of using digital advertising power to harm competitors and publishers in the advertising industry. This week’s post, which was viewed by The Wall Street Journal, was unplanned when it was uploaded to the public court docket. The provincial judge allowed Google to process it under a sign.

Some of the unwritten content in this document was previously revealed by MLex, which is a media outlet focused on fighting trust.

The document gives us more insight into the state’s lawsuit against Google, as well as the company’s search protection.

Most of the cases involve the interaction of Google’s roles as two major ad exchange operators – Google compares the New York Stock Exchange in marketing documents – and the representative of buyers and sellers on the exchange. Google also acts as an ad buyer itself, selling ads on its properties such as search and YouTube through these same programs.

Texas alleges that Google has used its access to data from publishers’ ad servers – where more than 90% of major publishers use Google to sell their digital ad space – to direct advertisers to what they will be bidding to get ad placement.

The use of Google’s bidding information, Texas allegations, has reached the in-market commercialization of digital advertising markets. Because Google has specialized information about what other ad consumers are willing to pay, the state says, it can unfairly compete with the tools to buy conflicting ads and pay publishers less money for its advertising bids.

Unconfirmed documents show that Texas claims Project Bernanke is an important part of that effort.

Google acknowledged the existence of Project Bernanke in its response and stated in a statement that “Project Bernanke’s performance details are not disclosed to publishers.”

Google has denied in writing that there is something wrong with using the special information it contains to inform bids, calling it “similar to data stored by other purchasing tools.”

Peter Schottenfels, a spokesman for Google, said the complaint “represents a serious flaw in our advertising business. We look forward to making our case in court. “You are referring to the Journal in a review by a U.S. regulator who concluded that Google does not appear to be profitable.

The Texas attorney general’s office did not immediately respond to requests for comment.

Google’s extreme role in the digital ad marketplace is controversial and sometimes misleading.

In some cases, “we are on the side of buying and selling everything,” Google’s Chief Economist Hal Varian said at an anti-money laundering conference held at the University of Chicago Booth School of Business. Varian said the title “has too much detail for viewers and me.”

In the file, Google said Project Bernanke used data about historical bids made by Google ads to optimize its clients’ bids and increase their chances of winning auction shows that would otherwise be won by competing advertising tools. The company has accurately acknowledged the 2013 internal presentation which shows that the project was expected to generate $ 230 million in that year; Texas cited that presentation as proof that Google has benefited from its performance.

This document also sheds some light on the secret agreement between Facebook Inc. and Google, better known as Jedi Blue, allegedly guaranteed Facebook a high value and profit – a certain percentage of the auction.

The agreement was signed, among others, by Philipp Schindler, Google’s vice-president and chief business officer, and Sheryl Sandberg, Facebook’s most active executive, the undisputed division of Google’s filing world.

Google has acknowledged in its response that it has agreed to make “appropriate marketing efforts” to ensure that Facebook is able to identify 80% of mobile users and 60% of desktop users, excluding Apple’s web browser users, at auction. Texas Appeal alleges that this activity appears to “allow Facebook to bid and win multiple auctions.”

Google also admitted in filing that Jedi Blue requires Facebook to spend $ 500 million or more on the Ad Manager or AdMob auction in the fourth year of the deal, and that Facebook is committed to making fair commercial efforts to win 10% of the auction when it had bids.

Facebook did not immediately comment on the new information contained in these documents. The company said it did not believe it was offered any special treatment compared to other Google partners.

This story has been published from a wire agency feed without modifications to the text.

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