June 20 (UPI) — Media company Gannett has filed a lawsuit against Google, alleging that the technology powerhouse engages in unfair practices in the realm of digital advertising.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York, with Gannett demanding a trial by jury.
Gannett, the publisher of USA Today and 200 smaller newspapers, alleges that Google has established a monopoly in the advertising industry.
“Google controls 90% of the market for ‘publisher ad servers,’ which publishers use to offer ad space for sale,” stated the Virginia-based Gannett.
“Google also controls over 60% of the market for ‘ad exchanges,’ which facilitate auctions among advertisers vying for ad space on publishers’ websites.”
Although the lawsuit does not specify a precise monetary value, Gannett seeks “significant damages,” as reported by the Wall Street Journal.
Gannett’s chief executive officer, Michael Reed, stated in the company’s official statement, “By monopolizing market trading, Google has gained an unfair advantage to the detriment of publishers, readers, and others. Digital advertising is the lifeblood of the online economy. Without fair and open competition for digital ad space, publishers are unable to invest in their newsrooms.”
Google and its parent company, Alphabet Inc., have refuted the allegations, denying any wrongdoing.
“These claims are simply unfounded,” said Dan Taylor, the Vice President of Google Ads, in a statement to USA Today.
“Publishers have numerous options when it comes to utilizing advertising technology for monetization — in fact, Gannett itself employs several competing ad services, including Google Ad Manager. Additionally, when publishers choose to use Google tools, they retain the majority of the generated revenue. We will demonstrate to the court how our advertising products benefit publishers and support their online content.”
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