News Corp Battles Google Over $9M Ad Decision

In 2017, News Corp estimated it could lose $9 million in ad revenue if it switched away from Google's ad platform. Former executive Stephanie Layser testified about Google's monopolistic practices at an antitrust trial. The U.S. Department of Justice aims to prove Google monopolized the ad tech market.

In 2017, News Corp faced a crucial decision that could cost it $9 million in ad revenue: switching away from Google's advertising platform. Former News Corp executive Stephanie Layser testified Tuesday about Google's dominance, expressing, 'I felt like they were holding us hostage.'

Layser, who worked at News Corp from 2017 to 2022, described how Google's features benefited itself more than publishers, compelling industry-wide reliance on its ad server and exchange. This testimony came on the second day of Google's antitrust trial in Virginia, orchestrated by the U.S. Department of Justice.

The trial aims to demonstrate that Google monopolized markets for publisher ad servers and advertiser ad networks. Documents revealed that in 2016, News Corp generated $83.3 million from ads using ad tech tools, with more than half involving Google's ad exchange. Layser's departure saw 70-80% of News Corp's ad transactions routed through Google.

Google counters that the case overlooks modern industry practices, arguing that publishers use an average of six platforms among over 80 services. Competing ad tech firms like Trade Desk, Comcast, and PubMatic could also testify, along with Google staff.

If found guilty, Google may face a forced divestiture of its Google Ad Manager platform, enabling a more competitive market environment.

(With inputs from agencies.)