Internal documents revealed at Google’s antitrust trial on Thursday indicate that the tech giant was fully aware that its 2019 decision to alter ad tech features would provoke dissatisfaction among publishers. The changes, designed to prevent publishers from diverting ad sales to competitors, are central to the ongoing case where the U.S. Department of Justice (DOJ) and a coalition of states argue that Google unfairly monopolized the online advertising market.
The trial, which aims to demonstrate Google’s dominance in ad technology, showcased emails and internal communications highlighting Google’s strategic planning around the controversial changes. Google employees had discussed the potential loss of revenue due to publishers using their ability to set higher minimum bids on Google’s AdX compared to other exchanges. This flexibility often led publishers to sell ad space through non-Google exchanges.
Documents from 2017 revealed that Google was aware of the publishers’ willingness to accept lower profits to leverage other ad tech companies that offered lower fees. “It helps them to keep Google at bay and put pressure on us (similar to any industry),” an email from that period stated.
As the company prepared to terminate the feature in 2019, internal communications revealed strategies to manage the anticipated backlash from publishers. Nitish Korula, then a research scientist at Google, noted in an email that implementing the change alone would likely be perceived negatively. To counteract this, Google rolled out the change alongside other updates intended to benefit publishers, including eliminating the practice of giving Google’s ad tools a “last look” advantage in auctions.
Despite Google’s assurances, publishing executives voiced strong opposition to the changes. Recordings played in court from an April 2019 meeting captured frustration from executives at major publishers such as the New York Times, News Corp, and The Weather Company. Jana Meron, formerly an advertising executive at Business Insider, criticized the changes, stating, “You have made it next to impossible for any of us to figure out how to increase our yield with partners outside of Google.”
The trial is expected to continue for several weeks. Should U.S. District Judge Leonie Brinkema find Google in violation of antitrust laws, the court may consider the DOJ’s request to force Google to divest its Google Ad Manager platform, which encompasses both the publisher ad server and ad exchange components.
