[aesh2Xa1]

You’re right. The description on this report is faulty, but I think the gist is pretty apparent.

Google tells the website owner that the winning bid was smaller in value than what it really was, thus paying the owner less money.

Google tells the advertisement auction that the winning bid was higher (than what the agreement required), but they only pay the website owner the smaller value. They are paid by the higher bidder and they (Google) keep the difference.

Google can use that excess money however they choose. In this case, they seem to be using it to pump up the value of the second-highest bids (it’s an auction), so that they can receive an even greater difference in the next auction.

[pixl97]

Heh, if this pans out it will be one of the larger fraud cases ever.