In a significant legal development, Alphabet’s Google is set to confront a proposed class action lawsuit filed by advertisers alleging monopolization of the ad exchange market, as ruled by a U.S. judge on Friday.
U.S. District Judge Kevin Castel’s decision, while dismissing certain antitrust claims, including those pertaining to ad-buying tools utilized by large advertisers, allows a crucial set of claims to proceed.
Castel’s review of several cases against Google yielded a mixed outcome, with the judge striking down many claims but permitting at least one key set to advance.
The advertisers involved in the lawsuit “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,” stated Castel.
Additionally, Castel noted that Gannett, the largest U.S. newspaper chain and publisher of USA Today, could pursue a separate case to demonstrate that Google fraudulently concealed anticompetitive effects of certain technology. Gannett’s allegation revolves around Google making inventory available for auction on its ad exchange, despite Gannett selling some ad space directly to advertisers, thus accruing transaction fees for its own benefit.
Both Google and Gannett have not provided immediate responses to requests for comments regarding the ruling.
The decision marks another chapter in the ongoing legal battles faced by tech giants over alleged anticompetitive practices. With Google now poised to navigate the complexities of the class action lawsuit filed by advertisers, the outcome of the case could have far-reaching implications for the tech industry and competition law.
