By: The Wall Street Journal
October 22, 2021
Google takes a cut of 22% to 42% of U.S. ad spending that goes through its systems, according to a newly unredacted lawsuit by state attorneys general, shedding new light on how the search giant profits from its commanding position in the internet economy.
The share the Alphabet Inc. GOOG 0.38% subsidiary takes of each advertising transaction on its exchange—a marketplace for ad buyers and sellers—is typically two to four times as much as the fees charged by rival digital advertising exchanges, according to the suit, which is being led by Texas.
“[T]he analogy would be if Goldman or Citibank owned the NYSE,” said one senior Google employee quoted in the suit, referring to the New York Stock Exchange.
Google has called the lawsuit flawed. “This lawsuit is riddled with inaccuracies and our ad tech fees are actually lower than reported industry averages,” said Peter Schottenfels, a Google spokesman.