Saturday, 12 March 2022

UK and EU competition authorities launch dual probes into Meta and Google

 

Jedi Blue Returns

UK and EU competition authorities launch dual probes into Meta and Google

The UK Competition and Markets Authority (CMA) and the European Commission have opened twin investigations into an online advertising arrangement that was revealed in a pending US antitrust investigation.

On 11 March the CMA and the Commission announced their investigations into the agreement referred to in Google’s internal documents as “Jedi Blue”.

The investigations concern ‘header bidding’ which is a type of advertising auction allowing publishers to bid on multiple ad exchanges at the same time.  The investigations will consider whether a September 2018 agreement about Meta’s use of Google’s advertising auction was an attempt to curtail expansion of header bidding. 

The two agencies will work together during their own investigations.  It is not known whether Meta and Google have agreed to waive confidentiality restrictions to allow the two agencies to share documents.

The European Commission’s investigation is under both Article 101 and 102 TFEU which is comparatively rare in its Big Tech probes.

The CMA is investigating under the UK equivalent of Article 101 (Chapter I of the UK Competition Act 1998) although it has a wider investigation into whether Google has abused its dominant position in header bidding more generally.

The agreement first came to light as a result of investigations by US state attorneys general, lead by Texas and who are taking action against Google under US antitrust law.

The case highlights the reality that in antitrust probes into Big Tech, the borderless internet presents challenges for global enforcement.  However, complainants and investigated companies should be alert to the fact that documents provided to one authority may well spark probes in another jurisdiction.

 

Sources:

 

EU

https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1703

 

UK

 

https://www.gov.uk/government/news/cma-investigates-google-and-meta-over-ad-tech-concerns

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