Thursday, September 21, 2023
Thursday, September 21, 2023
Thursday, September 21, 2023

Gannett Sues Google for Digital Advertising Monopoly




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Gannett, the largest U.S. newspaper publisher, has taken legal action against Google and its parent company Alphabet, accusing them of unlawfully monopolizing the advertising technology tools used by publishers and advertisers to buy and sell online ad space, Your Content has learned.

In the civil lawsuit filed by Gannett, the company claims that Google exercises control over how publishers sell their ad slots and forces them to sell a greater proportion of ad space to Google at reduced prices.

Consequently, publishers and Google’s ad-tech competitors suffer from decreased revenue, while Google benefits financially.

The lawsuit from Gannett follows earlier legal actions against Google, including an antitrust lawsuit filed by the U.S. Department of Justice and several states, which aimed to dismantle Google’s alleged monopoly on the entire online advertising ecosystem.

These legal actions accuse Google of anti-competitive practices and excluding competitors from the online ad-serving process.

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The European Union also initiated an antitrust investigation into Google’s dominance in digital advertising in 2021.

Recently, EU regulators brought fresh antitrust charges against Google, suggesting that divesting parts of the company’s profitable digital ad business is the only way to address competition concerns.

Gannett’s CEO, Mike Reed, expressed the company’s motive in an opinion piece published in USA Today, owned by Gannett. Reed highlighted the need to restore fair competition in the digital advertising marketplace, which he believes Google has dismantled.

He pointed out the harmful impact of Google’s bid-rigging practices on local news outlets.

As of now, Google has not provided any comment in response to the lawsuit.

Gannett’s legal action, filed in the U.S. District Court for the Southern District of New York, seeks both unspecified damages and injunctive relief. The company intends to have a jury trial to address the matter, according to U.S. News.

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