Gannett Files Federal Lawsuit Against Google
June 20 2023 - 8:04AM
Business Wire
Lawsuit alleges digital advertising practices
violate U.S. antitrust and consumer-protection laws
Gannett Co., Inc. (NYSE: GCI) the largest
publisher in the United States including USA TODAY and over 200
local publications, today filed a federal lawsuit in U.S. District
Court for the Southern District of New York against Google for
monopolization of advertising technology markets and deceptive
commercial practices. The lawsuit seeks to restore competition in
the digital advertising marketplace and end Google’s monopoly,
which will encourage investment in newsrooms and news content
throughout the country.
As more Americans read the news online, publishers depend on
digital advertising revenue to provide timely, cutting-edge
reporting and content that communities across the country rely on.
Google’s practices have depressed revenue and impacted local
newsrooms adversely by monopolizing the markets for important
software and technology products that publishers and advertisers
use to buy and sell ad space.
Google controls 90% of the market for “publisher ad servers,”
which publishers use to offer ad space for sale. Google also
controls over 60% of the market for “ad exchanges,” which run
auctions among advertisers bidding for ad space on publishers’
websites. Google controls the largest source of advertisers bidding
on exchanges. For Gannett, 60% of all buyers come through Google.
The result is Google unfairly controlling selling, buying, and the
exchange that matches sellers and buyers – and manipulating all
aspects of online advertising transactions.
“Google has monopolized market trading to their advantage and at
the expense of publishers, readers and everyone else. Digital
advertising is the lifeblood of the online economy. Without free
and fair competition for digital ad space, publishers cannot invest
in their newsrooms,” said Michael Reed, Gannett Chairman and Chief
Executive Officer. “For more than a hundred years, Gannett has been
a tireless advocate for freedom of the press empowering communities
to thrive. This lawsuit seeks to ensure we can continue our mission
for hundreds of years more."
In 2022, Google made upwards of $30 billion in revenue from the
sale of ad space on publishers’ websites which was six times the
digital advertising revenue of all U.S. news publications,
combined.
In December 2020, a bipartisan group of 17 State Attorneys
General filed a lawsuit against Google raising similar allegations
of ad-tech monopolization. The U.S. Department of Justice, joined
by a bipartisan coalition of 17 additional States, filed its own
ad-tech lawsuit against Google earlier this year. Both lawsuits
have withstood Google’s best efforts to get the cases dismissed.
And, last week, the European Union’s competition authority filed a
related ad-tech case based on the same underlying conduct. The DOJ
and EU are rightly seeking a breakup of Google’s ad-tech business,
in addition to monetary damages and fines.
The full text of the complaint can be found here and additional
information here as well as Mike Reed’s Opinion Editorial in USA
TODAY here.
ABOUT GANNETT
Gannett Co., Inc. (NYSE: GCI) is a subscription-led and
digitally-focused media and marketing solutions company committed
to empowering communities to thrive. With an unmatched reach at the
national and local level, Gannett touches the lives of millions
with our Pulitzer Prize-winning content, consumer experiences and
benefits, and advertiser products and services. Our current
portfolio of media assets includes USA TODAY, local media
organizations in 43 states in the U.S., and Newsquest, a wholly
owned subsidiary operating in the United Kingdom with more than 150
local news media brands. Gannett also owns digital marketing
services companies branded LocaliQ, and runs one of the largest
media-owned events business in the U.S., USA TODAY NETWORK
Ventures. To connect with us, visit www.gannett.com.
Forward-Looking
Statements
Certain statements in this press release are or may be
considered forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding the Company’s action against Google, the
purpose and reason for the action, any anticipated damages related
to the action, the costs to the Company related to the action, the
outcome of the action, the risks placed upon the Company in
connection with the action, and the timing of the action.
Forward-looking statements can generally be identified by words
such as “anticipate,” “believe,” “develop,” “expect,”
“opportunity,” “pursue,” “seek,” “will,” and similar expressions.
These statements are based on management's current views and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in these statements, including the uncertainty of the outcome of
the action against Google and any damages or amounts received in
connection with the action, if any, and the uncertainty of the
costs associated with and timing of litigation, in general. For a
discussion of some of the additional risks and important factors
that could cause actual results to differ from such forward-looking
statements, see the risks and other factors detailed from time to
time in the Company's Annual Report on Form 10-K, our quarterly
reports on Form 10-Q, and our other filings with the Securities and
Exchange Commission. Furthermore, new risks and uncertainties
emerge from time to time, and it is not possible for the Company to
predict or assess the impact of every factor that may cause its
actual results to differ from those contained in any
forward-looking statements. There is no guarantee that any of the
events anticipated by the Company's forward-looking statements will
occur. Except to the extent required by law, the Company undertakes
no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230620098231/en/
Lark-Marie Anton Chief Communications Officer (646) 906-4087
lark@gannett.com
Gannett Investor Relations Trisha Gosser SVP, Finance
& Deputy CFO (703) 854-3000 investors@gannett.com
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