In Re: Google Digital Advertising Antitrust Litigation
Analysis Group was retained on behalf of Google in a major multi-district class-action antitrust litigation related to Google’s digital advertising exchange business practices. The proposed class, consisting of advertisers that placed ads on third-party websites using the Google Ads ad-buying tool, alleged that Google acquired and maintained monopoly power in the claimed digital advertising exchange market by implementing certain pricing rules and other anticompetitive practices in its digital advertising auctions. The plaintiffs claimed that Google’s actions increased sales volume on its AdX digital advertising exchange and caused advertisers to pay higher prices to place ads than they would have but for the allegedly anticompetitive practices.
Analysis Group academic affiliate Judith Chevalier submitted an expert rebuttal report and provided deposition testimony evaluating the plaintiffs’ damages expert’s analysis of the volume of business allegedly affected by Google’s auction practices and the amount by which advertisers allegedly overpaid for ad impressions as a result of Google’s alleged market power. Professor Chevalier challenged the opposing expert’s damages model, observing that a substantial proportion of at-issue transactions were placed on Google’s AdSense platform rather than its AdX exchange.
Judge Kevin Castel of the US District Court for the Southern District of New York denied certification of the advertiser class and cited Professor Chevalier’s rebuttal analysis in his opinion: “One of Google’s experts, Judith Chevalier, Ph.D., has opined persuasively that [the plaintiffs’ expert’s] analysis fails to explain how the claimed auction manipulations directed to AdX impacted the prices that advertisers paid on AdSense transactions.” The court held that the lead plaintiff’s claims were not representative of the class and that the plaintiffs failed to establish a common method across class members to demonstrate antitrust injury and damages.
Professor Chevalier was supported by an Analysis Group team led by Managing Principal Chris Borek and Vice Presidents John M. Browning, Shogo Hamasaki, Peter C. Jones, Riccardo Marchingiglio, and Kate Schofield.