America's largest newspaper group sues Google

Gannett - owner of USA Today and more than 200 local newspapers in the US - accuses Google of monopolizing the online advertising market.

Gannett filed the lawsuit in federal court in New York on June 20, seeking damages. In the lawsuit, Gannett claims that Google and its parent company, Alphabet, control how publishers buy and sell online advertising.

"This has caused significant revenue losses for Google's publishers and competitors, while Google has reaped huge monopoly profits," the lawsuit says. Gannet currently owns USA Today and more than 200 other local newspapers in the US. They are the largest newspaper group in the country by circulation.

Google controls about 25% of the US online advertising market. Meta, Amazon and TikTok have more than 30% of the market. Other publishers and websites together control closer to 40%. The tech giants’ share of this market has begun to decline slightly, but Google remains the biggest player.

This means publishers still rely in part on Google's advertising technology to support their operations. Gannett says Google controls 90% of the advertising market for publishers.

Gannett logo outside its headquarters in Virginia (USA). Photo: Reuters

In a statement yesterday, President and CEO Michael Reed said Google's dominance in the online advertising market "has impacted publishers, readers, and many others." "Online advertising is the lifeblood of the digital economy . Without free and fair competition for ad space, publishers cannot invest in their newsrooms," he said.

Dan Taylor, Google's vice president of global advertising, told CNN that the allegations were "completely false." "Publishers have many options when it comes to ad revenue. In fact, Gannett used dozens of different advertising services, including Google Ad Manager. When publishers choose Google's tools, they also keep the majority of the revenue. We will demonstrate to the court how our advertising tools benefit publishers and help them finance their digital content," he said.

Gannett's move comes as Google faces increasing allegations of monopoly in the US and Europe in the advertising sector, its main money-making machine.

Last week, EU officials said Google’s advertising business should be broken up, accusing the tech giant of being involved in multiple stages of the advertising supply chain, creating conflicts of interest and threatening competition.

Earlier this year, the US Justice Department and eight states sued Google, accusing the company of threatening competition because of its dominance in digital advertising. They also called for the division to be broken up.

Ha Thu (according to CNN)

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