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During the ongoing Google antitrust trial, a former News Corp executive revealed that the media company could lose $9 million in ad revenue if it stopped using Google’s ad tools. The trial, held in Virginia, is part of a larger investigation by the U.S. Department of Justice into whether Google has unlawfully monopolised the digital advertising market.
Testimony Details
Stephanie Layser, who oversaw advertising technology at News Corp from 2017 to 2022, testified that Google’s ad services are so dominant that it would be costly for companies to stop using them. In 2016, News Corp earned $83.3 million from ads sold using different ad tech platforms, with over half of those transactions handled by Google’s ad exchange. Layser estimated that $9 million of this revenue was exclusive to Google and would be lost if News Corp switched to another platform.
Layser also expressed frustration with Google’s business practices, claiming that the tech giant’s ad server and exchange systems made it difficult for publishers to explore alternative options. “I felt like they were holding us hostage,” Layser stated. By the time she left News Corp, around 70-80% of the company’s ad transactions were processed through Google’s ad exchange.
The Google Antitrust Battle
The Google antitrust trial, which is expected to last several weeks, will determine if the search engine giant abused its dominance in key ad technologies such as publisher ad servers, advertiser ad networks, and ad exchanges. The Department of Justice aims to show that Google unfairly limited competition, preventing companies from using other tools and pushing bids through its own platform.
Google has responded by arguing that the trial is based on outdated industry data, claiming that large publishers today use an average of six different ad platforms, not just Google.
Potential Consequences
If Google is found guilty of violating antitrust laws, U.S. District Judge Leonie Brinkema may order Google to sell its Google Ad Manager platform, which includes both its publisher ad server and ad exchange. The outcome of the trial could have major implications for the future of digital advertising and competition in the tech industry.