An economist testified that Google made billions of dollars in extra ad revenue starting in 2017 — by making a secret change to its auction algorithm that bumped their revenues up 15%. Bloomberg reports:

Michael Whinston, a professor of economics at the Massachusetts Institute of Technology, said Friday that Google modified the way it sold text ads via “Project Momiji” — named for the wooden Japanese dolls that have a hidden space for friends to exchange secret messages. The shift sought “to raise the prices against the highest bidder,” Whinston told Judge Amit Mehta in federal court in Washington.

Google’s advertising auctions require the winner to pay only a penny more than the runner-up. In 2016, the company discovered that the runner-up had often bid only 80% of the winner’s offer. To help eliminate that 20% between the runner-up and what the winner was willing to pay, Google gave the second-place bidder a built-in handicap to make their offer more competitive, Whinston said, citing internal emails and sealed testimony by Google finance executive Jerry Dischler earlier in the case…

About two-thirds, more than 60%, of Google’s total revenue comes from search ads, Dischler said previously, amounting to more than $100 billion in 2020.

In 2021 Google was also accused of running “a secret program to track bids on its ad-buying platform,” according to the New York Post (citing reporting by the Wall Street Journal). A Texas-led antitrust suit accused Google “of using the information to gain an unfair market advantage that raked in hundreds of millions of dollars annually, according to a report.”
And the Post’s article also mentioned “an alleged hush-hush deal in which Google allegedly guaranteed that Facebook would win a fixed percentage of advertising deals.”

Read more of this story at Slashdot.

Source: Slashdot – Google Made Billions With Secret Change to Ad-Auction Algorithm, Witness Testifies

A team of scientists drove hundreds of miles through the steppes of Kazakhstan in search of what may be one of the largest and most diverse fungi ecosystems on Earth.

The Washington Post believes their efforts “could help make the planet more resilient to climate change.”

When these underground fungi come together, they form sophisticated systems known as “mycorrhizal networks….” Mycorrhizal fungi often form mutually beneficial relationships with plants. They trade essential nutrients such as phosphorus and nitrogen in exchange for carbon, and act as an extended root system, allowing plants to access water they can’t reach. These networks may also prove to be invaluable for transporting carbon underground, a study published in June found. About 13 gigatons of carbon fixed by vegetation — equivalent to about one-third of all carbon dioxide emissions from fossil fuels in one year — flows through underground fungi, according to an analysis of nearly 200 data sets.

In the steppe, these plant-fungal benefits may be short-lived, however. While deserts are a natural part of Kazakhstan’s ecosystem, more than half of the country’s vegetation and drylands is at risk of becoming desert as well. The main drivers are large-scale intensive agriculture and increasingly warm and dry temperatures brought by climate change…. Knowing what species of fungi live here is key to understanding how to protect them, said Bethan Manley, project officer at the Society for the Protection of Underground Networks who was on the expedition. It will help determine “where we might be able to have the most effective measures of not poisoning them with fungicides or not having harmful farming practices,” she said.

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Source: Slashdot – Can These Fungus-Studying Scientists Make the Planet More Resilient to Climate Change?

The Street argues that Satya Nadella “has transformed Microsoft since taking over for former CEO Steve Ballmer. Instead of closing the company off from its rivals, Nadella has been open to working with companies that are also competitors like Apple.” But they added that Nadella “remains at odds” with Google’s parent company Alphabet, even testifying in the antitrust lawsuit against the company.

They highlight another example from Nadella’s testimony (first spotted by GeekWire).

Nadella also believes that Alphabet sells a false narrative that OEM partners have a choice when in reality they don’t. “Google has carrots and it has massive sticks…’We’ll remove Google Play if you don’t have us as the primary browser.’ And without Google Play, an Android phone is a brick. And so that is the type of stuff that is impossible to overcome. No OEM is going to do that,” he said.

GeekWire also notes Nadella’s comments about the U.S. government’s antitrust case against Microsoft in 1998:

“Google exists because of two things. One is because of our consent decree, where we had to put a lot of limits on what we could distribute and not distribute by default. And, second, because [of] the fact that you could distribute anything you wanted on Windows, and it’s still the case, right, it’s not just Google. … The largest marketplace on Windows happens to be not from Microsoft, it’s Steam. And so it’s an open platform on which anybody can distribute anything.”

Read more of this story at Slashdot.

Source: Slashdot – What Microsoft’s CEO Said in Court About Google – And Its Own 1998 Antitrust Case

“34% of Californians say they are considering moving out of the state due to housing costs,” according to a new report from the Public Policy Institute of California.

It’s a nonprofit think tank founded in 1994 “to inform and improve public policy in California through independent, objective, nonpartisan research.” (Founded with a grant from Bill Hewlett of Hewlett-Packard, it also gets funding from the David and Lucile Packard Foundation). The report’s startling conclusion? “After a century of explosive growth, California is likely to become a slow-growing state.” After the year 2030 California’s seniors (older than 65) are expected to outnumber its children. “In 2020, California had nearly four residents ages 18-64 for every adult 65 and older. This ratio is expected to drop to 2.8 by 2030 and 2.2 by 2060, if current trends continue.”

Births are outpacing deaths by over 106,000 people a year. (Even during the pandemic California had a lower COVID mortality rate than most states.) And international immigration remained a net positive with a 90,000-person increase in 2022. Yet all of this was offset in 2022 by a net loss of 407,000 people migrating out of the state.

California already has a population of 39 million — but the full report cites July 2023 projections from the state’s Department of Finance that now “suggest that the state population will plateau between 39 and 40 million residents in the long term.”

The caption on one graph notes that California “is losing households at all income levels.”

[W]hile the majority of domestic outmigrants are lower- and middle-income, an increasing proportion of higher-income Californians are also exiting the state. The “new normal” of remote work in many white-collar professions has enabled some higher-income workers to move. Politics might also play a role, as conservatives are much more likely than liberals to say they have considered leaving the state.
One other factor:
Declining birth and fertility rates are a nationwide, even a global, phenomenon as economic and social events have changed the status of women and their access to educational and job opportunities. Total fertility rates — the number of births the average woman will have in her lifetime — have fallen across the U.S. in recent decades. No state has a rate at or above 2.1, the level necessary to maintain a population’s current size (not taking immigration and migration into account), but California’s fertility rate has fallen faster than most. In 2008 its rate was above the national average (2.15); by 2020 it fell to the seventh-lowest (1.52).

The declining birth rate among young adults in their 20s is the biggest driver of the fertility rate decline. One major factor is that 20-somethings are now less likely to get married, which can affect decisions to have children… In the past, higher birth rates among immigrants also helped offset lower birth rates among US-born Californians, though more recently birth rates among immigrants have declined, reflecting patterns in sending countries.

Read more of this story at Slashdot.

Source: Slashdot – Why Is California’s Population Falling? Housing Costs