Alphabet’s (GOOGL.O), parent company of Google, has been ordered by a U.S. judge to face a proposed class action lawsuit alleging monopoly in the ad exchange market. U.S. District Judge Kevin Castel‘s ruling on Friday allowed the lawsuit to proceed, albeit with certain antitrust claims dismissed, notably those concerning ad-buying tools utilized by major advertisers.
Judge Castel’s decision, part of a broader review of cases against Google, rejected many claims but upheld a significant portion for further legal proceedings.
He stated that while the advertisers had not sufficiently demonstrated antitrust standing regarding the ad-buying tools market for large advertisers, they did so concerning purported injuries resulting from anti-competitive practices in the ad-exchange and small advertisers’ buying tools markets.
Additionally, the judge noted that Gannett (GCI.N), the largest U.S. newspaper chain and publisher of USA Today, could pursue a separate case alleging that Google concealed anticompetitive effects of certain technology.
Gannett claimed that despite directly selling some ad space to advertisers, Google still made the inventory available for auction on its ad exchange, profiting from transaction fees.
Google and Gannett declined immediate comment on the ruling.
The judge’s decision comes amid a series of nationwide litigations against Google, which faces multiple antitrust claims.
The U.S. Justice Department initiated legal action against Google in January 2023, accusing the tech giant of exploiting its dominance in digital advertising.
The government sought the divestiture of Google’s Ad Manager suite, which includes the AdX ad exchange.
Google Ad Manager comprises tools allowing websites to sell advertising space and an exchange that facilitates automatic matching of advertisers with publishers.
Complaints from advertisers and website publishers have centered on Google’s lack of transparency regarding the allocation of ad revenues, particularly concerning the shares going to publishers versus those retained by Google.