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USA Today Publisher Gannett Sues Google for Alleged Monopolizing of Ad Tech Market
Gannett, the publisher of USA Today, filed a lawsuit against Google in the Southern District of New York for allegedly violating antitrust laws by monopolizing the advertising technology market. According to Gannett, Google has been carrying out anticompetitive activities for over a decade via its control over the largest ad exchange and ad server. It further argued that Google's control of the ad tech market has led to decreased online ad spending for publishers, thereby depriving them of the means to invest in their newsrooms.
Impact of Google's Monopolistic Practices on Publishers
Gannett's complaint highlights the harm caused by Google's monopolistic practices to the entire online ecosystem, including publishers, advertisers, and readers. It claims that Google has monopolized market trading to its benefit, to the detriment of publishers, readers, and everyone else. The complaint echoes the arguments made by the Department of Justice in its second lawsuit against Google, alleging that the company illegally maintained a monopoly through its control of multiple parts of the ad selling and buying market.
Other Antitrust Lawsuits Against Google
In addition to the lawsuit filed by Gannett, a group of attorneys general led by Texas also filed a lawsuit in 2020, alleging anticompetitive practices over Google's ad tech products. Google has faced numerous antitrust lawsuits with allegations of anticompetitive behavior, including those related to how it distributes its search product.
Google's Response to the Lawsuit
Google responded to the recent lawsuit filed by Gannett. However, as per previous lawsuits against Google related to antitrust violations, the company is expected to argue that it operates in a competitive market, and its practices are within the limits of antitrust laws.
Google has faced numerous antitrust accusations in the past, with regulators worldwide questioning its dominance in the tech industry. Gannett's lawsuit is another addition to the list of antitrust lawsuits filed against Google, further reinforcing the need for scrutiny of its market practices. However, the resolution of such a lawsuit may take years, and the outcome remains uncertain.
The ongoing antitrust lawsuit against Google by Gannett is just one of many anticompetitive practice allegations the tech giant has faced in recent years. Small businesses, start-ups, and entrepreneurs could face damaging business consequences since their low market power is a disadvantage in the ad tech market due to Google's alleged monopoly. The lawsuit may lead to increased regulation, which could level the playing field and offer more opportunities for new ad tech companies to compete with Google. If this lawsuit and others result in Google being required to release some of its control over ad tech, smaller companies could have a chance to gain a foothold in the industry. Moreover, this could lead to higher ad revenue for publishers, which, in turn, could enable them to invest in their newsrooms to deliver better quality content. Though the lawsuit's outcome remains uncertain, entrepreneurs and small businesses should monitor this case and be cautious since it could make or break new ad tech companies trying to enter the market.