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Google and Facebook, the No. 1 and No. 2 players in online advertising, made a secret illegal pact in 2018 to divide up the market for ads on websites and apps, according to an antitrust suit filed Wednesday against the search giant. The suit — filed by Texas and eight other states — alleges that the companies colluded to fix prices and divvy up the market for mobile advertising between them.

The allegation that Google teamed up with Facebook to suppress competition mirrors a major claim in a separate antitrust suit the Justice Department filed against the company in October: that Google teamed up with Apple to help ensure the continued dominance of its search engine. Such allegations provide some of the strongest ammunition yet to advocates who argue that the U.S. major tech companies have gotten too big and are using their power — sometimes in conjunction with each other — to control markets.Many of the details about the Google-Facebook agreement, including its specific language, are redacted from the complaint. But the states say it “fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers’ web display and in-app advertising inventory.”

The complaint alleges that the agreement was prompted by Facebook’s move in 2017 to use “header bidding” — a technology popular with website publishers that helped them increase the money they made from advertising. While Facebook sells ads on its own platform, it also operates a network to let advertisers offer ads on third-party apps and mobile websites.

House lawmakers who spent the last 16 months investigating the practices of the world’s largest technology companies said on Tuesday that Amazon, Apple, Facebook and Google had exercised and abused their monopoly power and called for the most sweeping changes to antitrust laws in half a century.In a 449-page report that was presented by the House Judiciary Committee’s Democratic leadership, lawmakers said the four companies had turned from “scrappy” start-ups into “the kinds of monopolies we last saw in the era of oil barons and railroad tycoons.” The lawmakers said the companies had abused their dominant positions, setting and often dictating prices and rules for commerce, search, advertising, social networking and publishing.The House ReportRead the full report here »

To amend the inequities, the lawmakers recommended restoring competition by effectively breaking up the companies, emboldening the agencies that police market concentration and throwing up hurdles for the companies to acquire start-ups. They also proposed reforming antitrust laws, in the biggest potential shift since the Hart-Scott-Rodino Act of 1976 created stronger reviews of big mergers.

Three states and the District of Columbia allege that the tech giant misled consumers by continuing to track those who had changed their privacy settings to prevent data collection.

Google is also fighting an antitrust lawsuit led by Texas in which states have accused the company of obtaining and abusing a monopoly over the systems that allow publishers to auction off ad space to marketers. On Friday, Google asked a federal court to dismiss the lawsuit.The lawsuits add to a mounting offensive by regulators to curtail the power and business practices of Silicon Valley giants like Google, Facebook, Amazon and Apple. State and federal regulators have filed dozens of antitrust, consumer protection, privacy and trade lawsuits in an attempt to curb the business models or break up the companies. A Senate committee last week advanced potentially landmark antitrust legislation that tries to weaken the dominance of the internet giants.

The Senate Judiciary Committee is set to deliberate on the American Innovation and Choice Online Act, which some experts consider to have the most realistic chance of becoming law out of broad slate of reforms, while creating major change in the industry. The committee schedule also lists a markup of the Open App Markets Act, another bipartisan competition bill.Both bills would prevent certain dominant tech platforms from favoring their own products or services over others that rely on their marketplaces to do business. But the Open App Markets Act’s impact would primarily be limited to those that run app stores, like Apple and Google, while the American Innovation and Choice Online Act would be more expansive, potentially preventing a company like Amazon from giving its own private label products a better ranking in its search than a third-party competitor.Apple and Google could similarly be barred from unfairly ranking their own apps above competitors’ in their mobile app stores, and for Google, the same principle would apply to its general search engine as well

As the DoJ and FTC pursue civil antitrust litigation against some of America's largest tech firms, a House Committee has approved legislation to curb the market dominance of many of these same firms, including Google-owner Alphabet and Facebook. However, according to a report from WSJ, the tech firms targeted by the legislation are ramping up their lobbying efforts, precipitating a pitched battle over the legislation in the Senate.At the core of the six-bill raft of legislation is a measure to bar big tech firms from favoring their own products on their platforms. It was approved by the House committee early Thursday by a vote of 24 to 20.The NYT reported that Apple and other tech giants engaged in aggressive lobbying against the six-bill package, with Apple CEO Tim Cook going so far as to call Speaker Nancy Pelosi and other top lawmakers to warn them against supporting the legislation. Per the NYT, the calls from Cook were "part of a forceful and wide-ranging pushback by the tech industry since the proposals were announced this month. Executives, lobbyists, and more than a dozen think tanks and advocacy groups paid by tech companies have swarmed Capitol offices, called and emailed lawmakers and their staff members, and written letters arguing there will be dire consequences for the industry and the country if the ideas become law."

Mirroring the outcome of several EU anti-trust investigations, the legislation, known as the "American Choice and Innovation Online Act," the legislation would prohibit the owners of big platforms (like Amazon's online marketplace) from creating disadvantages for goods and services provided by competitors.

Economic justice advocates applauded on Tuesday as the Federal Trade Commission and 17 states filed a sweeping antitrust lawsuit against Seattle-based Amazon.com for illegally dominating the online retail economy at the expense of consumers.

The 172-page complaint "lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," said FTC Chair Lina Khan in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them." The document—filed in a federal court in Washington state—alleges that Amazon maintains "durable monopoly power" in the online superstore and marketplace services markets, including by stifling price competition and coercing sellers into using its fulfillment service.