Gannett, Leading News Publisher, Sues Google for Ad Tech Monopoly

Gannett, a prominent news publisher itself accused of monopolistic practices, has lodged a lawsuit against Google, alleging monopoly in ad technology. This development is the most recent in a series of legal actions directed at the internet behemoth, and it echoes many of the arguments put forth by the Department of Justice in their second lawsuit against Google earlier this year. As the largest news publisher in the US, Gannett argues that Google has exploited the market to their own benefit and to the detriment of publishers, readers, and other stakeholders. “Google has controlled market trading to their advantage, undermining publishers, readers and everyone else,” Gannett CEO Mike Reed stated in a conversation with CNBC. “Digital advertising fuels the online economy. Absence of fair competition for digital ad space hinders publishers from investing in their newsrooms.”

Gannett, the proprietor of USA Today and numerous local newspapers, asserts that Google holds an expansive control over the online ad industry, which results in reduced ad expenditure despite an increasing online audience. The main argument in the complaint is that Google owns the largest ad exchange and ad server, both obtained through acquisition rather than organic growth, and this has led to a decrease in industry revenue.

“Content creators, including hundreds of our local news outlets, generate substantial value but fail to see any financial returns due to Google, who as an intermediary, monopolizes markets for essential software and technology products utilized by publishers and advertisers to purchase and sell ad space,” wrote Mike Reed, Gannett’s CEO. “Google leverages that conflict of interest for its own gain and at the cost of publishers, readers, and everyone else. Our lawsuit details numerous significantly anticompetitive and deceptive acts by Google, beginning as early as 2009 and continuing till the present day.”

In response, Google told BuyTechBlog that its services are popular due to their quality and not a lack of competition. “These allegations are simply inaccurate. Publishers have multiple choices when it comes to leveraging advertising technology to monetize. In fact, Gannett uses various competing ad services, including Google Ad Manager,” Dan Taylor, VP of Google Ads, said. Google maintains that the average large publisher utilizes six different platforms to sell ads, and advertisers and media agencies use over three platforms to buy ads. Google describes its ad tech fees as transparent and in line with industry standards.

However, Gannett’s allegations mirror those of the DOJ, which filed a lawsuit earlier this year to dismantle Google’s ad business. The DOJ, alongside eight states, accused Google of maintaining a monopoly over search and search-related advertising, which, in turn, raised barriers to market entry, and deterred potential competitors from joining the market.

Gannett has previously faced monopoly accusations. Despite being over 116 years old, the company was purchased by New Media Investment Group and merged with GateHouse Media in 2019, retaining the Gannett brand. Post-merger, Gannett laid off over half its workforce and closed multiple local news outlets. The company, which owned 261 daily and 302 weekly newspapers after the merger, reduced its totals to 217 daily and 175 weekly newspapers by the end of 2022, partly due to sales to local buyers. Furthermore, the company reduced its workforce from around 25,000 at the time of acquisition to 11,200 as per the most recent filing report.

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More about Gannett sues Google

• Gannett Official Website
• Google Official Website
• Department of Justice Antitrust Division
• USA Today
• Information about Ad Tech
• Nieman Lab News Publishing Analysis
• Details about the Merger of New Media Investment Group and GateHouse Media