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5/17, 7:56 PM (Source: TeleTrader)
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Google agrees to refund advertisers after lawsuit - report

United States tech giant Google accepted to refund advertisers that started a lawsuit against Alphabet Inc.'s company for allegedly keeping the payments for ad space purchased through its marketplace that were hosted on websites with faulty traffic, the Wall Street Journal reported on Friday, citing sources with knowledge on the matter and relevant court documents. According to the report, Google offered partial refunds to advertisers and agencies that bought advertising space on the platform before finding that many of the websites hosting the ads were run by bots. The company stressed that it was not able to provide full refunds for purchases on the ad marketplace to third party ad hosting web spaces.

Ad company AdTrader Inc. sued Google in California federal court and claimed that some of ad marketplaces with fraudulent traffic, including AdX and AdSense, were owned by Google. Also, an engineer who works for Google said that the tech giant avoid paying $75 million in refunds related to products it controlled, adding that the issue was the size of Google's ad space and difficulties involved in controlling it.

Google's parent company Alphabet Inc. traded 0.72% in the red at 1:56 pm ET.

Breaking the News / SS