Gannett, the largest newspaper chain in the United States, has filed a lawsuit against Google, alleging that the tech giant is violating federal antitrust laws by monopolizing the market for online advertising. The publisher, which produces USA Today and more than 200 other daily newspapers, claims that Google and its parent company, Alphabet, control the tools used to buy and sell online ads, resulting in less revenue for publishers and Google’s ad-tech rivals.
Gannett’s complaint, filed in federal court in Manhattan, seeks unspecified damages. The lawsuit was filed five months after the US Department of Justice brought a similar lawsuit against Google over its advertising technology. The European Union also filed a case against Google on June 14th, stating that the company might have to sell some of its advertising technology.
According to Gannett, Google’s monopoly on online advertising has forced publishers to sell more ad space to Google at lower prices, resulting in “dramatically less revenue for publishers and Google’s ad-tech rivals, while Google enjoys exorbitant monopoly profits.” The company claims that Google’s dominance in online advertising has caused newspaper ad revenue to fall by nearly 70% since 2009, despite the fact that the online digital advertising industry has grown nearly eightfold into a $200 billion business.
Google generates the majority of its revenue through advertising, bringing in $224.5 billion in 2022, which accounts for almost 80% of Alphabet’s overall revenue. The company’s first-quarter ad revenue was $54.5 billion, which remained relatively unchanged from the previous year. Advertising allows Google to offer its services for free, including email and much of its YouTube video platform.
Like many newspaper publishers, Gannett has struggled in recent years due to falling ad revenue and a shift towards online news consumption. The publisher reported that print circulation at its newspapers fell by nearly 20% in 2020 and 2021, and that it has closed more than 170 publications since merging with GateHouse Media in 2019.
Google has not yet responded to the lawsuit.
Overall, Gannett’s lawsuit against Google highlights the ongoing concerns around the tech company’s dominance in the online advertising market, and the impact that this has on traditional media outlets. The case raises important questions about the regulation of tech giants and the need for greater competition in the digital advertising industry.
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