Gannett Takes on Google in Lawsuit over Advertising Monopolies

2023

In a clash that could rival the epic battles between superheroes and supervillains, Gannett, the heavyweight champion of U.S. newspaper publishers, has thrown down the gauntlet and filed a civil lawsuit against Google and its parent company Alphabet. The accusation? Unlawfully monopolizing the advertising technology tools that publishers and advertisers rely on to trade online ad space.

According to the lawsuit, Google exerts its power to dictate how publishers sell their coveted ad slots, strong-arming them into offering more space to Google at discounted rates. This allegedly leaves publishers with reduced revenue, while Google's ad-tech competitors are left counting their losses as Google's pockets grow heavier.

This legal maneuver by Gannett comes hot on the heels of the U.S. Justice Department and eight states taking a swing at Google in January with their own antitrust lawsuit. Their claim? Google has an iron grip on the entire online advertising ecosystem, sidelining any potential competition.

But the fight doesn't end there. The European Union (EU) has also stepped into the ring, launching its own investigation into Google's digital ad dominance last year. And just last week, EU regulators landed a fresh blow on Google, slapping it with more antitrust charges. Their knockout punch? To break up Google's digital ad business by forcing it to divest certain parts.

This escalating showdown between the EU and Silicon Valley's giants mirrors similar actions taken by U.S. authorities in their attempts to dismantle Google's alleged stranglehold on the online advertising realm.

Mike Reed, Gannett's CEO, took to the pages of USA Today, owned by Gannett, to rally support for the cause. In an opinion piece, he voiced the company's mission to "restore fair competition in a digital advertising marketplace that Google has demolished." Reed asserts that Google's bid-rigging practices have left local news outlets reeling.

But the gloves come off on Google's side, with Dan Taylor, the vice president of Google Ads, refuting Gannett's claims. Taylor insists that publishers have a plethora of options when it comes to monetizing their content through advertising technology. He argues that publishers retain the lion's share of revenue when utilizing Google's tools and extols the virtues of Google's advertising products.

Gannett's lawsuit, filed in the U.S. District Court for the Southern District of New York, aims for an undisclosed amount of damages and injunctive relief. With an eye on a jury trial, Gannett is ready to go toe-to-toe with Google in the legal arena.