Foo Yun Chee, Paul Sandle

BRUSSELS/LONDON – Friday’s parallel investigation by the European Union and British antitrust officials into a deal for online display advertising between Google and Facebook in 2018 (NASDAQ:) adds to a list of regulatory issues facing U.S. technology giants.

Google’s Alphabet unit (NASDAQ:), and Facebook’s parent company Meta, both defended the deal called “Jedi Blue”, which was criticized by the EU as it may hinder ad tech competitors and make publishers less competitive in online display advertising.

Publishers, like news providers can offer advertising space to several ad networks or exchanges at once, potentially increasing their ad revenue.

Meta, via the Meta Audience Network’s Jedi Blue agreement, can participate in Google Open Bidding, which is an alternative to header bidding.

Margrethe Vestager, EU Antitrust Chief Margrethe Vestager stated in a statement that “an alternative technology to Google Open Bidding might have been targeted with an aim to weaken and exclude it form the market for advertising on publisher websites or apps.”

Google responded to investigations by stating that “this is a publicly-documented, pro-competitive arrangement which enables Facebook Audience Network to participate in the Open Bidding program along with dozens other companies.”

Meta released a statement saying that Meta’s agreement to bidding with Google was non-exclusive and other similar deals have helped increase the competition for placements.

Google and Facebook, both of which have been subject to more than 8 Billion Euros ($8.8 Billon) EU antitrust fines over the last decade, are being probed by the executive bloc for other matters and may face up to 10% in fines for violating the rules.

The deal is being investigated by the British antitrust authorities.

In an antitrust lawsuit against Google, Texas and fifteen other states in the United States claimed that Facebook’s deal was part of the company’s effort to combat header bidding. Publishers wanted more revenue from ads on their sites through this method.

($1 = 0.9109 euros)