Google Faces Rising Pressure to Settle Antitrust Claims from Publishers
A recent ruling by Judge P. Kevin Castel in the US District Court for the Southern District of New York has significantly increased the pressure on Alphabet Inc.'s Google to settle antitrust claims brought by publishers. The judge found sufficient evidence to support claims by USA Today Co., Daily Mail, and a class of about 5,000 other publishers that Google overcharged them through its advertising technology platform, AdX. The potential damages for Google are substantial, with the publishers' class seeking over $1.7 billion before trebling, and individual claims from Daily Mail and USA Today amounting to roughly $600 million and $900 million, respectively.
Experts suggest that Google may prefer to settle the case rather than risk a jury trial, given the complex nature of the claims and the company's mixed track record in court. Harry First, a professor emeritus at NYU School of Law, noted that Google's history of losing high-profile cases, such as the one against Fortnite maker Epic Games in 2023, could influence their approach. 'Going before a jury is always rolling the dice a little bit,' First said. 'My instinct is you want to look for a number to settle.'
Legal analysts also point out that the economic downturn and the perception of Google as a cash-rich tech giant could work against the company in the eyes of jurors. Christine Bartholomew, a law professor at the University at Buffalo, added that the complexity of the case might favor the defendants, making a settlement more likely. The publishers' counsel, described as 'very sophisticated,' have indicated their readiness to proceed to trial if necessary.
Despite the pressure to settle, the possibility of a trial remains. Wyatt Fore, a partner at Shinder Cantor LLP, noted that a single juror could sway the outcome. 'If you're the defendant, you might think, “We’ve got decent arguments, and all we need is one juror to lock up the jury,”' Fore said. The case represents a significant milestone in the broader litigation against Google, following a 2023 Justice Department suit accusing the company of unlawfully monopolizing the digital advertising market.