The Largest Newspaper Publisher in the US Sues Google, Alleging Online Ad Monopoly

Gannett, the largest newspaper publisher in the US, has filed a lawsuit against Google, claiming that the tech giant has a monopoly over the digital ad market.

The lawsuit was filed in a New York federal court, and Gannett is seeking unspecified damages, arguing that Google and its parent company, Alphabet, control the buying and selling of online ads for publishers.

According to court documents, this results in significantly reduced revenue for publishers and competitors of Google’s ad-tech, while Google itself enjoys monopoly profits.

Google currently holds about a quarter of the US digital advertising market, with Meta, Amazon, and TikTok combining for another third, and news publishers and other websites making up the remaining portion. Although Big Tech’s share is slightly declining, Google remains the dominant player.

Due to this dominance, publishers often rely on Google’s advertising technology to support their operations, with Gannett claiming that Google controls 90% of the ad market for publishers.
Gannett’s chairman and CEO, Michael Reed, stated that Google’s dominance in the online advertising industry has come at the expense of publishers, readers, and the entire ecosystem, emphasizing that fair competition is necessary for publishers to invest in their newsrooms.

In response, Google’s vice president of global ads, Dan Taylor, refuted the claims, stating that publishers have various options for monetizing their content and that Gannett itself uses multiple competing ad services, including Google Ad Manager. He argued that publishers retain the majority of revenue when they choose to use Google’s tools.

This legal action from Gannett adds to the growing number of antitrust complaints Google is facing in the US and the EU regarding its advertising business, which remains a significant source of revenue for the company.

EU officials recently suggested breaking up Google’s advertising business, citing inherent conflicts of interest in the digital advertising supply chain that pose competition risks.

Additionally, the US Justice Department and eight states have sued Google, alleging harm to competition in the online advertising market and calling for its breakup.