Alphabet’s (GOOGL) Google and Meta Platforms (META) allegedly engaged in a “secret deal” to target Instagram advertisements at teenagers on YouTube, according to a report.
Alleged Marketing Scheme
The report suggests that Google launched a marketing project aimed at directing 13- to 17-year-old YouTube users to Meta’s Instagram. This initiative seemingly circumvented Google’s policies that prohibit personalized ads for users under 18.
Pilot Program Details
The companies reportedly collaborated with Spark Foundry on a pilot marketing program in Canada from February to April, followed by a trial in the U.S. in May. There were plans to expand the initiative internationally and include promotions for Meta’s Facebook platform, according to sources familiar with the matter.
Google’s Response
A Google spokesperson emphasized the company’s commitment to protecting minors from personalized advertising. “We prohibit ads being personalized to people under 18, period. These policies go well beyond what is required and are supported by technical safeguards,” the spokesperson told Investopedia. “We’ve confirmed that these safeguards worked properly here. We’ll also be taking additional action to reinforce with sales representatives that they must not help advertisers or agencies run campaigns attempting to work around our policies.”
Meta’s Silence
Meta did not immediately respond to a request for comment.
Context of Increasing Antitrust Scrutiny
The partnership between Google and Meta is notable, given their status as fierce competitors and the heightened regulatory scrutiny both companies face.
This week, a federal judge ruled that Google violated antitrust laws by maintaining a monopoly with Google Search, a decision Google plans to appeal. Additionally, the European Commission found last month that Meta’s “pay or consent” advertising practices on platforms like Instagram and Facebook may have violated the European Union’s new Digital Markets Act (DMA).
Market Reaction
Despite these controversies, shares of both Alphabet and Meta saw gains, each rising over 2% by 10:45 a.m. ET on Thursday.
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