Google was aware of publisher backlash over profitable ad tech changes: Report

Google anticipated pushback from publishers when it implemented 2019 measures aimed at preventing them from redirecting ad sales to competitors. To mitigate this, the company tried to make the changes appear more acceptable, according to internal documents revealed during its antitrust trial on Thursday, as reported by media sources.

The case, brought by the U.S. Department of Justice and several states, centers on Google’s removal of a tool that helped publishers reduce their reliance on Google, highlighting claims of the company's dominance in online advertising technology.

The Justice Department revealed emails showing Google employees discussing lost revenue as publishers set higher minimum bids for Google’s AdX than for other ad exchanges. This led publishers to sell ads through non-Google exchanges. Documents indicated publishers were willing to accept lower revenue on some sales to prioritise ad tech companies with lower fees over Google.

Before ending the feature in 2019, Google employees discussed ways to manage potential backlash from publishers. "It helps them to keep Google at bay and put pressure on us (similar to any industry)," Google executives discussed on an email thread in 2017.

Google implemented the change alongside new features favoured by publishers, including the elimination of its "last look" advantage, which allowed it to outbid other sellers.

However, publishing executives from organisations like The New York Times, News Corp, and The Weather Company opposed the loss of control, as revealed in recordings of an April 2019 meeting presented in court.

The trial is anticipated to span several weeks. If U.S. District Judge Leonie Brinkema rules that Google violated the law, she will later review the prosecutors' request for Google to sell off Google Ad Manager, which includes its publisher ad server and ad exchange platform.