In the ongoing antitrust trial against Google, a former News Corp executive testified on Tuesday that the media conglomerate estimated a staggering $9 billion loss in 2017 if it had opted to abandon Google’s advertising services. Stephanie Layser, who worked in advertising technology at News Corp from 2017 to 2022, described how the company felt constrained by Google’s dominance in the ad tech market.
Layser testified that News Corp’s reliance on Google’s advertising infrastructure was so profound that moving away from it would have resulted in significant revenue losses. “I felt like they were holding us hostage,” she remarked, underscoring the extent to which Google’s ad server and ad exchange had become integral to News Corp’s advertising operations.
The trial, which is expected to continue for several weeks, is being conducted by the U.S. Department of Justice. The department aims to prove that Google has monopolized key markets for publisher ad servers, advertiser ad networks, and ad exchanges, stifling competition and maintaining control over the digital advertising landscape.
According to documents presented at the trial, News Corp’s ad revenues from automated ad tech tools in 2016 amounted to $83.3 million, with more than half of these transactions routed through Google’s ad exchange. Of this, approximately $18.4 million came from Google’s own advertisers. The company estimated that about $9 billion of this revenue was exclusive to Google, highlighting the financial risk of switching to alternative ad platforms.
Layser’s testimony follows similar concerns raised by other industry players. Tim Wolfe, an advertising executive at Gannett, testified earlier that Gannett has used Google’s publisher ad server for around 13 years, noting a lack of viable alternatives.
In response, Google has argued that the trial relies on outdated industry practices, pointing out that large publishers typically use multiple ad platforms. The company asserts that over 80 ad services are available, suggesting that competition remains robust.
Potential witnesses in the case include competitors such as Trade Desk, Comcast, and PubMatic, along with more than two dozen former and current Google employees. If U.S. District Judge Leonie Brinkema rules that Google has violated antitrust laws, she may consider ordering the sale of Google Ad Manager, which includes both the publisher ad server and the ad exchange.
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