America's largest newspaper Gannett sues Google, ``Google is squeezing advertising costs''
On June 20, 2023, Gannett, an American newspaper company that owns more than 100 newspapers, including USA Today, filed a lawsuit in federal court against Google for monopolizing the advertising technology market.
Gannett CEO: Why we are suing Google for its business practices
USA Today publisher Gannett sues Google over advertising • The Register
https://www.theregister.com/2023/06/20/usa_today_google_lawsuit_gannett/
Gannett said, ``Digital advertising is now a $200 billion (about 28.3 trillion yen) business, and even though the market has expanded about eight times compared to 2009, news publisher advertising “Revenues have fallen significantly,” he said. The reason, Gannett argued, is that intermediary Google dominates the market for key software and technology products that publishers and advertisers use to buy and sell advertising space.
As an example, Google controls 90% of the market for 'publisher ad servers' used by publishers to sell ad space, as well as 'ad exchanges' that run auctions for ad space on publishers' websites. control more than 60% of the market in Furthermore, in the case of Gannett, 60% of all advertising buyers enter via Google, and Gannett points out that 'Google monopolizes most of the advertising business.'
In addition, Gannett argues that Google is abusing its ad server monopoly, making it increasingly difficult for rival exchanges to conduct competitive auctions. Gannett said, 'Google's exchanges are rigging auctions to allow Google advertisers to buy inventory at discounted prices, resulting in less investment in online content across the industry, and more inventory sold by publishers. Advertisers are buying less and less ad space.'
According to Gannett, in 2022 alone, Google is known to have earned more than $30 billion from selling advertising space on publisher websites. At times, that amount is six times the digital advertising revenue earned by all American news publishers, and Gannett said, ``If the market works, who can make more money for middlemen than content creators? I don't think so,' he insisted. He said he took up the lawsuit because he believes Google continues to violate U.S. antitrust and consumer protection laws.
Gannett CEO Mike Reed said, 'Our lawsuit aims to restore fair competition to the digital advertising market that Google has destroyed. Our oldest publication, the Poughkeepsie Journal, was published in 1785. Since its inception, news coverage has relied on advertising.Today, 86% of Americans read news online.As a result,news publishers have become dependent on digital advertising revenue, The community is relying on it, but advertising revenue for news publishers has dropped significantly.'
He continued, ``Since 2008, employment in the news industry has fallen by more than half, and 20% of all newspapers have been forced to close. is having a real impact, not just on revenue, but by causing local news to shrink in these times when it's needed most: less news where it's needed most, while Google It's a success, and it's the American press and its readers that are losing out.'
The US Department of Justice has also questioned the relationship between Google and the advertising market, and has sued Google twice in October 2020 and January 2023.
Google is sued for antitrust violations in the advertising market, Google argues that ``a huge competitive market is being ignored''-GIGAZINE
Furthermore, the EU also sees Google's efforts to maintain its dominance by developing services on both the selling and buying sides of online advertising. It's an opinion,' he said. “Digital advertising is the lifeblood of the online economy. Without free and fair competition for digital ad space, publishers will not be able to invest in newsrooms and content, and readers will have access to reliable news at low or no cost,” said Lead. 'Our democracy and communities crumble when citizens are uninformed and quality journalism is not available to hold those in power to account.'
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