Largest US Newspaper Chain Accuses Google Of Monopolistic Ad-Tech Business Practices

Google would soon have to defend its $200+ billion Ad-Tech business on American soil. Gannett, the largest US newspaper chain, has sued the search giant. The company claims Google is abusing its dominant market position to bully publishers.

Gannett, the publisher of USA Today and more than 200 daily newspapers in the US, is seeking legal action against Google. The print media conglomerate has claimed it is suffering because Google, and its parent Alphabet, monopolize tools for buying and selling online ads.

Gannett Lawsuit Against Google Explained

Gannett has filed a complaint against Google in a federal court in Manhattan, USA. The complaint has claimed the way Google has set up its ad-tech business, it forces publishers to sell more ad space to Google at depressed prices.

The implied arm-twisting and alleged price-gouging by Google results in "dramatically less revenue for publishers and Google's ad-tech rivals, while Google enjoys exorbitant monopoly profits," claimed Gannett.

Gannett is seeking unspecified damages via the Gannett Co v Google LLC et al, US District Court, Southern District of New York, No. 23-05177. This might mean the publisher is seeking legal intervention and federal pressure on Google to change its business tactics.

Incidentally, Gannett's complaint is quite similar to the one that the US Department of Justice had against Google over its advertising technology. It appears the media publishing behemoth is hoping Google would have to share way more revenue from its ad-tech business than it currently does.

Newspaper Publishers In The US And Other Regions Struggling Due To Google?

There's no doubt that newspapers have been struggling in recent years. Not only is their circulation badly impacted, their revenue, which mainly comes from ads and sponsorships, has dropped steeply.

The majority of news publications, offline and online, are fighting for viewership but Google seems to have thrived as most people get their news through its search portal. Needless to say, this doesn't benefit news publications even though platforms like MSN, Google Search, and others, often source their content from them.

Online advertising in the United States alone is now a $200 billion (roughly Rs. 16,41,689 crore) business. The ad revenue for newspapers has been reduced by 70 percent, and big tech businesses like Google are stifling it further, the lawsuit seems to imply.