Google is facing yet another lawsuit, this time from a prominent US media house named Gannett. The legal action alleges that Google has engaged in illegal monopolistic practices within the advertising technology market. The media house filed a complaint in the Southern District of New York, asserting that despite the exponential growth of the online digital advertising industry, news publications have experienced a significant decline in advertising revenue, which has plummeted by almost 70% since 2009.
Gannett claims that this decline is due to Google and its parent company, Alphabet, unlawfully acquiring and maintaining monopolies over the advertising technology tools used by publishers and advertisers to purchase and sell online ad space.
In its complaint, Gannett accuses Google of conducting a deceptive and anti-competitive scheme for over a decade. The media house points out that Google obtained control over the largest ad exchange and ad server through acquisitions rather than internal development, giving the company an undue advantage in the market (The Verge report stated).
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In response to the lawsuit, Dan Taylor, vice president of Google Ads, refuted Gannett's claims, stating that the allegations were incorrect. He argued that publishers have numerous alternative options for monetizing their content through various advertising technologies. Taylor emphasized that Gannett itself utilizes numerous competing ad services, including Google Ad Manager, and retains the majority of the revenue generated. Google intends to present evidence in court to demonstrate how its advertising products benefit publishers and contribute to funding their online content.
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This lawsuit adds to the growing list of legal challenges faced by Google, which has been the subject of numerous allegations related to antitrust and anti-competitive behaviour. As the case progresses, it will be interesting to see how the court evaluates the evidence presented by both parties and how it may impact the advertising technology landscape.
