Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Commission Seeking Declarations That Agreements Not To Bid On Google Ads Breach Commerce Act

The Commerce Commission has filed proceedings at the High Court in Christchurch seeking declarations that consumer loan provider Moola engaged in cartel conduct relating to online advertising on Google Ads.

The Commission alleges Moola reached agreements with other consumer loan providers that they would not bid on each other’s brand names on Google Ads. The Commission also alleges agreements were reached that the companies would negatively match certain keywords. This means that consumers searching for a consumer loan provider on Google may not see ads for other loan providers.

The Commission considers these agreements fixed, controlled or maintained the price paid by Moola for its online advertising on Google Ads and prevented, restricted or limited the purchase of online advertising on Google Ads. As a result, the Commission alleges, entering into and giving effect to the agreements breached the Commerce Act.

The Commission is not seeking a pecuniary penalty in this proceeding.

As this case is before the Court, the Commission cannot comment further at this time.

Background
Moola
Moola is a consumer finance company providing high-cost short term loans up to $5,000. It operates through its websites moola.co.nz and needcashtoday.co.nz.

Google Ads
Search results on Google include both organic search results and paid advertising results through Google Ads.

Google Ads is an online advertising platform offered through the Google search platform. Companies can pay to display their products and services as an advertisement in response to a search for a particular word or phrase. The display ranking of an advertisement and the amount paid by the advertiser to Google Ads is determined by a live second-price auction or spot market.

Negatively matching keywords prevents certain ads from being triggered by a certain word of phrase, meaning certain ads will not display to anyone who is searching for that word of phrase.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Energy: New Zealand Could Be World’s First Large-scale Producer Of Green Hydrogen

Contact Energy and Meridian Energy are seeking registrations of interest to develop the world’s largest green hydrogen plant. The plant has the potential to earn hundreds of millions in export revenue and help decarbonise economies both here and overseas... More>>


MBIE: 36th America’s Cup Post-event Reports Released

Post-event reporting on the 36th America’s Cup (AC36) has been released today. The reports cover the delivery of the event by Crown, Council and America’s Cup Event Limited, economic impacts for Auckland and New Zealand, and delivery of critical infrastructure... More>>

Fonterra: Farmer Feedback Set To Shape Revised Capital Structure Proposal

With the first phase of Fonterra’s capital structure consultation now complete, the Co-op is drawing up a revised proposal that aims to reflect farmers’ views. A number of changes are being considered to the preferred option initially put forward in the Consultation Booklet in May... More>>




Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: