Google Sounds Alarm on Declining Open Web and Ad Market Risks

Google told a US court that the open web is in rapid decline, a statement that contrasts with its public message that the web is thriving. The admission appears in a legal filing ahead of a trial on Google and the advertising technology market.

The company made the comment while arguing against a proposed break up of its ad tech business. Google said a forced divestiture could speed the shift of advertising away from the open web to closed systems such as connected TV and retail media. The US Department of Justice is seeking remedies to address alleged monopoly power in ad tech.

The filing said that AI and non open web ad formats are reshaping the market and that competitors are directing investment into those areas. Google also argued that intervention by the court could harm publishers that rely on open web display advertising revenue.

The claim prompted reactions from the publishing industry and from Google spokespeople. A Google representative said the line referred to open web display advertising rather than the open web as a whole. The company said growth in other ad formats is an industry trend.

The admission is notable because Google executives have recently said search continues to send traffic to many publishers. CEO Sundar Pichai has said the company is sending clicks to a wider range of sources. Other Google leaders have defended search traffic metrics in public remarks.

Independent publishers and some researchers report declines in referral traffic after changes to search and the rise of AI chat tools. The dispute now moves into court where judges will weigh market evidence and proposed remedies.

The trial will test whether structural changes are needed in ad tech and whether the legal remedies proposed by the plaintiffs are appropriate given rapid market shifts. Regulators in the United States and in other regions will be watching the outcome closely.