Google faces over 3.2 billion dollars ad tech monopoly claim, publishers granted permission to proceed with jury trial

Google faces new significant legal pressure in the advertising technology monopoly lawsuit. The New York federal court has ruled that several major publishers may seek more than $3.2 billion in compensation for damages caused by Google’s monopoly over the advertising technology market.

According to Bloomberg, Manhattan federal district judge P. Kevin Castel issued a ruling on Wednesday evening, allowing the jury trial related to Google’s AdX advertising exchange platform to proceed.

The class action group consisting of about 5,000 publishers may seek approximately $1.7 billion in compensation; USA Today Co., the parent company of USA Today, and the UK’s Daily Mail General and Trust Plc have been granted leave to independently pursue about $900 million and $600 million respectively.

This case is closely related to the earlier lawsuit brought by the U.S. Department of Justice against Google in Virginia over advertising technology monopoly. Last month, the federal court in Virginia found Google illegally monopolized two advertising technology markets and ordered Google to open related tools to allow interoperability with competitors, but did not require a breakup of the business.

Once the jury trial in the New York case begins, it will directly decide the actual amount that Google must pay in compensation.

Google closed down 1.7% on Thursday.

Judge Castel’s decision rejected Google’s objections over compensation amount calculations and allowed the three groups of plaintiffs to each pursue their respective claims for damages.

In a statement, Google noted that the court also dismissed part of the publishers’ claims regarding another advertising purchasing tool and stated the company would “defend against the remaining allegations at trial.”

Polly Grunfeld Sack, chief legal counsel for USA Today Co., said the decision allows the company to pursue $1 billion in worldwide damages (before applying the antitrust law’s treble damages rule), called it a “major victory,” and expressed the intent to prove the claims at trial.

Philip Korologos, a partner at Boies Schiller Flexner LLP representing the publishers, likewise said he looked forward to pursuing the claims at trial.

The U.S. Department of Justice and multiple states filed a lawsuit against Google in 2023, accusing it of illegally monopolizing several ad tech sectors used for purchasing, selling, and displaying online display ads.

The federal court’s ruling in Virginia has already established the existence of monopoly conduct by Google based on the facts, while the parallel lawsuit in New York further seeks economic compensation on this basis.

At present, Judge Castel has not yet set a trial date. The case is numbered In re: Google Digital Advertising Antitrust Litigation, 21-md-3010, and is under the jurisdiction of the U.S. District Court for the Southern District of New York.