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863 points IdealeZahlen | 1 comments | | HN request time: 0s | source
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megaman821 ◴[] No.43718617[source]
I don't think this article explains it well. Google sells ad space on behalf of the publishers and also sells the ads on behalf of the advertisers. It also runs the auction that places the ads into the ad space. See this graphic https://images.app.goo.gl/ADx5xrAnWNicgoFu7. Parts of this can definately be broken up without destroying Google.
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hammock ◴[] No.43719246[source]
And crucially, there are leaked emails, other evidence that demonstrate (at the very least historical and occasional) corruption of this dual- (multi?) agency arrangement. Among the allegations:

The Google ad exchange favored its own platforms, limiting the ability of other exchanges to compete fairly in bidding for ad inventory. https://www.justice.gov/archives/opa/pr/justice-department-s...

In limiting the number of bidders, Google inflated the prices for ad inventory. https://www.abc.net.au/news/2024-11-26/closing-arguments-giv...

Google engaged in bid rigging where competitors agree on who will win a bid, again to inflate prices. https://www.justice.gov/atr/preventing-and-detecting-bid-rig...

Google entered market allocation agreements to create an unfair playing field. https://www.winston.com/en/insights-news/avoiding-antitrust-...

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andreimackenzie ◴[] No.43721107[source]
> In limiting the number of bidders, Google inflated the prices for ad inventory.

This part doesn't make sense to me. Limiting bidders should drive the price down, because fewer advertisers are competing for the same potential ad impression. The article describes Google's influence as "Google controls the auction-style system," which is a bit more open-ended about the specific alleged practices.

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InsomniacL ◴[] No.43721326[source]
> It was argued that this approach allows Google to charge higher prices to advertisers while sending less revenue to publishers such as news websites.

It could depend on how they 'limit the number of bidders'. If they sell seats to be able to bid, then the bids are lower to account for that, and publishers get a share of the bid, not the fee bidders pay. I'm guessing though...

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1. jvanderbot ◴[] No.43721974[source]
You could limit to one mark and a bunch of planted bidders in an attempt to control competition. If you win with your plants, you get to pay yourself anyway.