U.S. District Judge Amit P. Mehta issued a remedies opinion in United States v. Google LLC detailing how Google raised prices on Search Text Ads using internal "pricing knobs" and ordering new transparency measures.
What the court found
The court found Google incrementally increased text ad prices in 5-15 percent steps using internal "pricing knobs." Company surveys showed advertisers noticed higher costs but did not attribute the increases to Google. The opinion also notes that Google adjusted auction parameters without reference to competitors' prices and that changes were designed to limit advertiser pushback.
Advertiser testimony described Google's text ad pricing as:
a "black box."
New reporting requirements
Google must provide monthly reports on all Search Text Ads auction changes to Plaintiffs and a Technical Committee. Reports must:
- Identify all changes and flag which ones Google deems material.
- Include copies of any public notices about auction changes or explain why no notice was issued.
Key details
- Internal "pricing knobs" were used to lift text ad prices in 5-15 percent increments.
- Surveys indicated advertisers saw higher costs but did not connect them to Google's actions.
- Incremental changes were designed to avoid advertiser pushback.
- Auction adjustments were made without considering competitors' prices.
- Google must submit monthly reports on all Search Text Ads auction changes, identifying material items and attaching or explaining public notices.
Background
The remedies opinion follows the liability phase of United States v. Google LLC in the U.S. District Court for the District of Columbia. It focuses on Google's Search Text Ads auction design and price adjustments, drawing on internal surveys, auction materials, and trial testimony. The reporting requirements create a structured record of auction modifications to increase transparency around pricing.
Source
Read the remedies opinion (ECF No. 1436) for full details.
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