For months, Google has asserted that the internet is “thriving,” claiming that artificial intelligence has not negatively impacted website traffic and that its search engine is directing users to a more diverse range of sites than ever. However, in a recent court filing, Google acknowledged that “the open web is already in rapid decline,” a point noted by Jason Kint and reported by Search Engine Roundtable.
This admission was made in the context of an ongoing trial focused on Google’s monopoly in the advertising technology sector. The U.S. Department of Justice has suggested that Google should separate its advertising operations. In its filing, Google contended that this would be counterproductive, arguing it would “only accelerate” the decline of the open web, thereby negatively impacting publishers who depend on revenue from open-web display advertising.
Google:
While Plaintiffs continue to advocate for essentially the same divestiture solutions they proposed in their complaint filed in January 2023, the world continues to evolve. Their suggestions are presented as if the trial, the Court’s liability decision, and remedies discovery have not transpired—and as if the rapidly changing ad tech ecosystem has remained static during these legal proceedings.
Numerous changes have taken place: AI is transforming ad technology at every level; interest in non-open web display ad formats such as Connected TV and retail media is surging; and Google’s competitors are investing heavily in these emerging areas. The fact is that today, the open web is already in rapid decline, and the Plaintiffs’ divestiture proposal would only worsen that decline, harming the publishers who rely on open-web display advertising revenue. Legally, a court should avoid intervening to alter an industry that is experiencing substantial shifts due to market dynamics.
This statement marks a significant departure from Google’s prior messaging regarding the state of web search. The company has a vested interest in portraying itself as less monopolistic in a legal context, yet its acknowledgment resonates with the struggles faced by many publishers. Digital publishers and independent site owners have reported declining traffic coinciding with algorithm updates to Google Search and the increasing prevalence of AI chatbots.
In response to inquiries regarding the change in web traffic, Google spokesperson Jackie Berté communicated via email to Technology News that the cited statement represents “one cherry-picked line that misrepresents” the legal filing. “The context clarifies that we refer to ‘open-web display advertising’ specifically and not the open web as a whole,” Berté explained. “We are simply stating the fact that investments in non-open web display advertising formats, like connected TV and retail media, are expanding at the cost of those in open web display advertising.”
In a May episode of Decoder, Google CEO Sundar Pichai remarked that the company is “definitely sending traffic to a wider range of sources and publishers” since the introduction of AI search tools.
Nick Fox, Google’s senior vice president of knowledge, defended the company against assertions that search modifications are affecting web traffic. He stated on the AI Inside podcast that “from our perspective, the web is thriving.” Following a Pew Research report indicating that users are “less likely” to click on links when presented with Google’s AI Overview, Google Search head Liz Reid claimed that overall click volume has stayed “relatively stable” compared to the same timeframe last year, asserting that Google continues to “drive billions of clicks to websites each day.”
Update, September 8th: A statement from Google has been included.
