RealDaddy
Repeatedly violating rules
- Jun 30, 2018
- 9,017
- 11,293
Google and Microsoft have agreed to stop the non-aggression pact that was signed five years ago. The pact allowed the companies to set aside their numerous lawsuits and resolve their conflicts behind closed doors.
The companies recently disagreed over fair pay in ad tech, and they are escalating the issue by unraveling the pact. By undoing the pact, the companies are opening themselves up to additional antitrust scrutiny.
The ad tech problem surfaced just three years into the agreement, when Microsoft complained that Google was dragging its feet in supporting some of Bing’s new ad formats in one of its ad management tools, Search Ads 360. In addition, an antitrust lawsuit filed by state attorneys general claims that Google also favors its own platform by offering automated auctions to optimize bids; an equivalent tool isn’t available to advertisers seeking to book space on Bing.
As a result of the moves (or lack thereof), advertisers using Google’s ad platform found it easier to buy ads on Google, not Bing. Other search engines that rely on Bing are also affected, including DuckDuckGo, Yahoo, and Ecosia.
“We raised the concerns with them, and they just turned a deaf ear,” Microsoft President Brad Smith said earlier this year. Google’s unwillingness to work with Bing, he said, was costing the company hundreds of millions of dollars per year in ad revenue. (https://arstechnica.com/tech-policy/2021/06/google-and-microsoft-ditch-non-aggression-pact-rev-up-rivalry-again/)
The companies recently disagreed over fair pay in ad tech, and they are escalating the issue by unraveling the pact. By undoing the pact, the companies are opening themselves up to additional antitrust scrutiny.
The ad tech problem surfaced just three years into the agreement, when Microsoft complained that Google was dragging its feet in supporting some of Bing’s new ad formats in one of its ad management tools, Search Ads 360. In addition, an antitrust lawsuit filed by state attorneys general claims that Google also favors its own platform by offering automated auctions to optimize bids; an equivalent tool isn’t available to advertisers seeking to book space on Bing.
As a result of the moves (or lack thereof), advertisers using Google’s ad platform found it easier to buy ads on Google, not Bing. Other search engines that rely on Bing are also affected, including DuckDuckGo, Yahoo, and Ecosia.
“We raised the concerns with them, and they just turned a deaf ear,” Microsoft President Brad Smith said earlier this year. Google’s unwillingness to work with Bing, he said, was costing the company hundreds of millions of dollars per year in ad revenue. (https://arstechnica.com/tech-policy/2021/06/google-and-microsoft-ditch-non-aggression-pact-rev-up-rivalry-again/)