Sen. Warren calls for investigation of Google’s ‘Project Bernanke’
0Reported today on The Verge
For the full article visit: https://www.theverge.com/2021/6/30/22557314/warren-google-project-bernanke-cftc-digital-ad-regulator
Reported today in The Verge.
Sen. Warren calls for investigation of Google's 'Project Bernanke'
In a letter to the Commodity Futures Trading Commission (CFTC) on Wednesday, Sen. Elizabeth Warren (D-MA) called for an investigation of Google's alleged manipulation of the marketplace for online ads, opening the door for a new federal regulator for digital advertising markets.
Warren's letter focuses on a program called "Project Bernanke," revealed in April as part of a lawsuit against Google led by Texas Attorney General Ken Paxton. Under that program, Google allegedly used historical Google Ads data to boost clients' chances of winning auctions. The practice allegedly resulted in $230 million in additional revenue for the company.
"Because Google was able to learn from rival ad buyers' previous bidding data, its ad-buying tools gained a competitive advantage that ultimately boosted their win rates," Warren writes in the letter. "While are investigating this activity for potential violations of the antitrust laws, the activity raises additional concerns that I believe may be within the CFTC's jurisdiction and warrant close scrutiny."
Reached for comment, a Google spokesperson said the claims of market manipulation were a mischaracterization of a simple product feature. "This was entirely implemented by Google Ads for buyers, using the kinds of data and strategies that are available to any buyer participating in an Ad Exchange auction," the company said. "Like many other businesses in this highly competitive field, we constantly work to improve our products and compete more effectively."
Often overlooked in favor of splashier sidelines, online ad markets have long been the core of Google's business. In its most recent quarterly earnings, the company reported more than $44 b