A U.S. judge ruled on Friday that Google, a subsidiary of Alphabet, must face a proposed class action lawsuit from advertisers alleging that it monopolizes the ad exchange market. However, U.S. District Judge Kevin Castel dismissed some other antitrust claims, specifically those focusing on ad-buying tools used by large advertisers. This decision came after Castel reviewed multiple cases against Google and determined that while many claims were struck down, at least one key set could proceed. According to the judge, the advertisers “have not plausibly alleged antitrust standing in the markets for ad-buying tools used by large advertisers, but they plausibly allege antitrust standing as to injuries they purportedly suffered from anti-competitive practices in the ad-exchange market and the market for small advertisers’ buying tools.”
Judge Castel also mentioned that Gannett, the largest U.S. newspaper chain and publisher of USA Today, could pursue a separate case to prove that Google fraudulently concealed anticompetitive effects of some technology. Gannett’s claim revolved around Google making ad space available for auction on its ad exchange, despite Gannett selling it directly to advertisers, allegedly to accrue transaction fees for its own benefit. Both Google and Gannett have yet to respond to requests for comment on the ruling.
In addition to the recent lawsuit, Google faces a number of other claims on antitrust grounds. These include the U.S. Justice Department’s lawsuit against Google in January 2023, which accused the tech giant of abusing its dominance in digital advertising. The government specifically requested the divestiture of the Google Ad Manager suite, including its ad exchange, AdX. The suite consists of tools that allow websites to sell advertising space and an exchange that matches advertisers with publishers automatically. Advertisers and website publishers have raised concerns about Google’s lack of transparency regarding the distribution of ad revenue, particularly regarding how much goes to publishers versus Google.
With these ongoing legal battles, it remains to be seen how Google will navigate the complex landscape of antitrust regulations and potential consequences for its dominance in the digital advertising industry. As the cases progress, more details are expected to emerge regarding the allegations against Google and the implications for the broader tech industry.