Google Faces Class Action Lawsuit Over Alleged Monopolization of Ad Exchange Market
Judge Allows Advertisers’ Lawsuit Against Google to Proceed
Alphabet’s Google is facing a class action lawsuit from advertisers alleging the company monopolizes the ad exchange market, as a U.S. judge ruled in favor of the lawsuit on Friday. The decision by U.S. District Judge Kevin Castel allows some antitrust claims to proceed, while dismissing others related to ad-buying tools used by large advertisers.
Google Accused of Monopolistic Practices in Ad Market
Several cases against Google were reviewed by Castel, who struck down many claims but permitted at least one significant set to move forward. Advertisers alleged that Google’s practices in the ad-exchange market and small advertisers’ buying tools were anti-competitive, causing damages to their businesses.
Gannett Alleges Fraudulent Concealment by Google
In a separate case, Judge Castel ruled that Gannett, the largest U.S. newspaper chain and publisher of USA Today, could pursue claims that Google fraudulently hid the anticompetitive effects of some technology. Gannett claimed Google made its ad space available for auction despite selling directly to advertisers to profit from transaction fees. Both Google and Gannett have not responded to requests for comment.
Antitrust Cases Piling Against Google
Amidst other ongoing litigations, Google is facing multiple claims on antitrust grounds at both federal and state levels. The U.S. Justice Department filed a lawsuit against Google in January 2023, accusing the tech giant of abusing its dominance in digital advertising. The government sought divestiture of Google Ad Manager suite, including the ad exchange AdX.
Transparency Concerns in Digital Advertising
Concerns have been raised by advertisers and website publishers regarding Google’s lack of transparency in digital advertising. The opacity in how ad revenue is distributed between publishers and Google has led to grievances within the industry, prompting legal challenges against the tech giant.
