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Bulletins

Ten states file antitrust suit against Google over ad tech practices

Ten states file antitrust suit against Google over ad tech practices

Attorney General Ken Paxton is leading the ad tech suit.

Photo: Andrew Harrer/Bloomberg via Getty Images

A coalition of 10 states led by Texas is suing Google over its ad technology practices, alleging the company illegally abused its market position as a dominant player in online advertising.


The suit, which is only signed by Republican attorneys general so far, cuts to the heart of Google's business model, striking at the system that minted Alphabet $37.1 billion in revenue last quarter.

"To cement its dominance across online display markets, Google has repeatedly and brazenly violated antitrust and consumer protection laws," the lawsuit reads. "Its modus operandi is to monopolize and misrepresent. Google uses its powerful position on every side of the online display markets to unlawfully exclude competition."

In a video posted to Twitter earlier in the day, Attorney General Ken Paxton claimed Google "repeatedly used its monopolistic power to control pricing, engage in market collusions to rig auctions, and a tremendous violation of justice."

The complaint sweeps up another tech giant as well, claiming that Google entered into an "unlawful agreement" with Facebook in 2017 under which it promised to give Facebook a leg up during online ad auctions.

The lawsuit's narrative stems from Google's acquisition of ad tech company DoubleClick in 2008. Since then, the states allege, Google has deployed a series of manipulative and illegal tactics to maintain its control of the market, leveraging its power over valuable online space to crush rival efforts and boost its own services.

The suit is the government's latest salvo in a multipronged effort to rein in Big Tech's power. It comes only a week after the FTC and 46 state attorneys general sued Facebook for anticompetitive conduct, and several weeks after the Department of Justice brought a separate case against Google, which focuses on its dominance in search.

"Attorney General Paxton's ad tech claims are meritless, yet he's gone ahead in spite of all the facts," a Google spokesperson said in a statement. "Google's ad tech fees are lower than the industry average. These are the hallmarks of a highly competitive industry. We will strongly defend ourselves from his baseless claims in court."

Many of Google's own words are redacted throughout the complaint.

Correction: This story was updated at 1:34 p.m. PT to correct the year in which Google acquired DoubleClick.

Power

Activision Blizzard scrambles to repair its toxic image

Blizzard President J. Allen Brack is the first executive to depart amid the sexual harassment crisis.

Activision Blizzard doesn't seem committed to lasting change.

Photo: Allen J. Schaben/Getty Images

As Activision Blizzard's workplace crisis rages on into its third week, the company is taking measures to try to calm the storm — to little avail. On Tuesday, Blizzard President J. Allen Brack, who took the reins at the developer responsible for World of Warcraft back in 2018, resigned. He's to be replaced by executives Jen Oneal and Mike Ybarra, who will co-lead the studio in a power-sharing agreement some believe further solidifies CEO Bobby Kotick's control over the subsidiary.

Nowhere in Blizzard's statement about Brack's departure does it mention California's explosive sexual harassment and discrimination lawsuit at the heart of the saga. The lawsuit, filed last month, resulted last week in a 500-person walkout at Blizzard's headquarters in Irvine. (Among the attendees was none other than Ybarra, the new studio co-head.)

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Nick Statt
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.

What comes to mind when you think of AI? In the past, it might have been the Turing test, a sci-fi character or IBM's Deep Blue-defeating chess champion Garry Kasparov. Today, instead of copying human intelligence, we're seeing immense progress made in using AI to unobtrusively simplify and enrich our own intelligence and experiences. Natural language processing, modern encrypted security solutions, advanced perception and imaging capabilities, next-generation data management and logistics, and automotive assistance are some of the many ways AI is quietly yet unmistakably driving some of the latest advancements inside our phones, PCs, cars and other crucial 21st century devices. And the combination of 5G and AI is enabling a world with distributed intelligence where AI processing is happening on devices and in the cloud.

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Alex Katouzian
Alex Katouzian currently serves as senior vice president and general manager of the Mobile, Compute and Infrastructure (MCI) Business Unit at Qualcomm Technologies, Inc. In this role, Katouzian is responsible for the profit, loss and strategy of the MCI BU, which includes business lines for Mobile Handset Products and Application Processor Technologies, 4G and 5G Mobile Broadband for embedded applications, Small and Macro Cells, Modem Technologies, Compute products across multiple OS’, eXtended Reality and AI Edge Cloud products.
Protocol | Workplace

Alabama Amazon workers will likely get a second union vote

An NLRB judge said that Amazon "usurped" the NLRB by pushing for a mailbox to be installed in front of its facility, and also that the company violated laws that protect workers from monitoring of their behavior during union elections.

An NLRB judge ruled that Amazon has violated union election rules

Image: Amazon

Bessemer, Alabama warehouse workers will likely get a second union vote because of Amazon's efforts to have a USPS ballot box installed just outside of the Bessemer warehouse facility during the mail-in vote, as well as other violations of union vote rules, according to an NLRB ruling published Tuesday morning.

While union organizers, represented by the Retail, Wholesale, and Department Store Union, lost the first vote by more than a 2:1 margin, a second election will be scheduled and held unless Amazon successfully appeals the ruling. Though Amazon is the country's second-largest private employer, no unionization effort at the company has ever been successful.

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Anna Kramer

Anna Kramer is a reporter at Protocol (Twitter: @ anna_c_kramer, email: akramer@protocol.com), where she writes about labor and workplace issues. Prior to joining the team, she covered tech and small business for the San Francisco Chronicle and privacy for Bloomberg Law. She is a recent graduate of Brown University, where she studied International Relations and Arabic and wrote her senior thesis about surveillance tools and technological development in the Middle East.

Protocol | Fintech

Hippo’s plan to reinvent insurance: Fix homes before they break

Hippo, which is going public via a SPAC Tuesday, is using tech to prevent claims from happening.

Hippo CEO Assaf Wand wants to catch homeowners' losses before they happen.

Photo: Hippo

Home insurance, a $108 billion legacy industry that depends on troves of data, is a natural area for fintech companies to target.

That change is starting to happen — and one company is getting fresh capital to tackle the opportunity. Hippo, led by co-founder and CEO Assaf Wand, is going public today through a merger with a special purpose acquisition company Reinvest Technology Partners Z. The SPAC is run by LinkedIn co-founder and venture capitalist Reid Hoffman and Zynga founder Mark Pincus.

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Tomio Geron

Tomio Geron ( @tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. Before that, he worked as a staff writer at Forbes, covering social media and venture capital, and also edited the Midas List of top tech investors. He has also worked at newspapers covering crime, courts, health and other topics. He can be reached at tgeron@protocol.com or tgeron@protonmail.com.

Protocol | Policy

Weak competition could hike your broadband bill by $96 a year

A new consumer survey says that those with the most choice in broadband providers are paying the least and reveals opinions about municipal broadband, internet access, affordability and more.

Broadband affordability has become an urgent issue during the pandemic.

Photo: John Schnobrich/Unsplash

American homes that have lots of choice in broadband providers can expect to pay around $8 less per month for internet than those who are locked into a single company, according to a new survey from Consumer Reports.

The median monthly bill for people with four or more broadband providers in their area was $67. It was $75 for those with only one choice, according to the survey of nearly 2,600 US residents. In a sign that consumers are thirsty for increased broadband access, the survey also suggested wide approval for municipal broadband programs run by local governments.

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Ben Brody

Ben Brody (@ BenBrodyDC) is a senior reporter at Protocol focusing on how Congress, courts and agencies affect the online world we live in. He formerly covered tech policy and lobbying (including antitrust, Section 230 and privacy) at Bloomberg News, where he previously reported on the influence industry, government ethics and the 2016 presidential election. Before that, Ben covered business news at CNNMoney and AdAge, and all manner of stories in and around New York. He still loves appearing on the New York news radio he grew up with.

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