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| Allegations Investigating the Bernanke Project on Google |
In a letter to the CFTC, Senator Elizabeth Warren called for an investigation into Google's manipulation of the online advertising market that opened the door to new state regulation of the digital advertising market.
Warren's letter dealt with a plan called the Bernanke Plan, which was leaked in April in a lawsuit brought by the Texas attorney general against Google.
As part of this program, Google uses its past advertising data to improve customers' chances of winning auctions. This approach would have brought the company $230 million in additional revenue.
Warren wrote in the letter that Google's ability to learn from auction data of previous competing ad buyers gave Google a competitive advantage and ultimately added value.
"While this activity is being investigated for possible antitrust violations, the activity has raised additional concerns. I believe these concerns can and should be addressed by the CFTC," she added.
A Google spokesperson said the allegations of market manipulation were misinterpretations of the product's simple functionality. This is done entirely through Google Ads to buyers, using the types of data and instructions any buyer participating in the Ad Exchange auction can use.
He also mentioned that Google is constantly improving its products and competing more effectively. Like many other companies in this highly competitive field.
Google Verification of Bernanke's Project
As a result, the online advertising market, which has long been Google's core business, is often overlooked.
In its most recent quarterly earnings, the company reported more than $44 billion in advertising revenue. This corresponds to more than 80% of the company's total sales.
At the same time, digital advertising platforms appear to be becoming a new target for the CFTC. It traditionally deals with the latest commodity and cryptocurrency transactions.
However, Warren believes that digital advertising falls within the scope of the legal definition of a product. Market monitoring by the CFTC will not prevent other institutions from acting.
If the commission accepts Warren's call to action, it will also mean a major expansion of its power, which is a new topic for Google.
“The real-time advertising platform provides a platform for selling ad inventory every time a webpage is loaded,” Warren wrote. At the same time, tens of billions of digital ads are circulating daily in the operation of advertising platforms in the United States.