many people are going to be too happy with that situation no i mean it's illegal for a start but it's also deeply unethical and google don't seem to care and then in comes facebook so in march NUMBER_TOKEN facebook threw its weight behind the header bidding which was a big threat uh quote facebook communications reveal that facebook executives fully understood why google wanted to cut a deal with them they want to deal with they want this deal to kill header bidding google doesn't want to compete with facebook it says it would rather build a moat by collaborating instead facebook anticipated this in an NUMBER_TOKEN-month bidding strategy says new unrejected details facebook and google allegedly agreed on quotas for how often facebook would win publishers auctions literally manipulating the auction with minimum spends and quotas for how often facebook would bid and when google employees discussed a jedi mind trick on the industry to cut off exchanges in header bidding now google monopolizes the publisher ad server market for display inventory through its own product called google ad manager and google ad manager controls NUMBER_TOKEN of this product market in the united states so google and facebook are currently operating a monopoly with a particular deal that means they're both insider trading essentially and this is unsurprisingly quite um scary frankly yeah i mean it sounds like it's living up to the title of cartel well yes to me it's absolutely a cartel um with a ridiculous amount of money a ridiculous amount of market dominance and shows that there is something deeply wrong in silicon valley so one google employee conceded an exchange shouldn't be an immensely profitable business it should be a public good used to facilitate buyers and sellers because the people who lose out on this are the regular people who are like well i'll just use google adverts to try and promote my product well google like we're going to take something like NUMBER_TOKEN NUMBER_TOKEN of your uh profits out of this when a regular ad exchange is something like NUMBER_TOKEN and google can't even be attacked on this because they are the market so there's nothing you can do about that they set the rules exactly um google has insulated its exchange from any of the competitive market dynamics that would otherwise incentivize them to lower the prices in fact here we go gdn charges high double digit commissions of at least NUMBER_TOKEN on advertising transactions whereas according to public sources this is double the standard rate elsewhere in the industry if they're the remaining NUMBER_TOKEN of the industry yeah uh and so how mad is that i mean they're not really giving people many options are they no going on to another twitter thread uh talk about google's internal rules uh says google has a secret deal with the facebook with facebook called jedi blue which they knew was so illegal that they have a whole section describing how they'll cover for each other if anyone finds out so they literally they are literally a cartel so they know exactly what they're doing is wrong absolutely and they have contingency plans in place facebook and google are conspiring to protect one another in the event that this becomes public knowledge and we trust these people with the exchange of information oh completely google has worked with facebook and microsoft to discourage them from increasing user privacy lamenting occasions where they prioritize their reputation over the collective business interest again data is money to them and they control it all google appears to have a team called g-trade which is
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