Gannett sues Google over ad tech

 


The news: Gannett, the owner of major newspapers like USA Today, has filed a lawsuit against Google and Alphabet, accusing them of having anti-competitive monopolies in advertising technology tools.

The details: Gannett alleges that Google dominates the ad sales system used on publisher websites. The suit claims that Google controls ad sales, forcing publishers to sell more ad space at lower prices, reducing publisher revenue while increasing Google's profits. Gannett said it's seeking "substantial damages" and to restore fair competition.

Response: Google's Ads VP, Dan Taylor, countered by highlighting the variety of ad tech choices available to publishers, including Google Ad Manager, which he said allows them to retain the majority of their revenue.

What the numbers say: According to Gannett, Google earned over $30B in revenue last year from selling ad space on publishers' websites, or around six times the combined digital advertising revenue of all U.S. news publications. Google has around 25% share of the U.S. digital ad market. News publishers and other websites account for roughly 40%. Although Big Tech's market share is slightly declining, Google remains the dominant player. Publishers heavily depend on Google's ad technology, as it controls 90% of the publisher ad market, according to Gannett.

The bigger picture: The lawsuit is part of a broader trend of legal actions targeting Google's digital advertising business, including antitrust lawsuits by the U.S. Justice Department and a recent call for the breakup of Google's advertising business by EU officials.

   

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