By Michelle Chapman
Gannett has filed a civil lawsuit against Google and its parent company Alphabet, claiming that they unlawfully hold monopolies in the advertising technology tools that publishers and advertisers use to buy and sell online ad space.
The largest U.S. newspaper publisher by total daily circulation alleges in the suit that Google controls how publishers sell their ad slots and forces them to sell an increasing amount of ad space to Google at lower prices. This in turn results in less revenue for publishers and Google's ad-tech rivals and more money for Google.
In January the Justice Department and eight states filed an antitrust lawsuit against Google, seeking to shatter its alleged monopoly on the entire ecosystem of online advertising as a hurtful burden to advertisers, consumers and even the U.S. government. The suit accused the company of unlawfully monopolizing the way ads are served online by excluding competitors.
The European Union launched an antitrust investigation into Google's digital ad dominance in 2021. And last week EU regulators hit Google with fresh antitrust charges, saying the only way to satisfy competition concerns about its lucrative digital ad business is by selling off parts of the tech giant's main moneymaker.
The unprecedented decision to push for such a breakup marks a significant escalation by Brussels in its crackdown on Silicon Valley digital giants, and follows a similar move by U.S. authorities seeking to bust Google's alleged monopoly on the online ad ecosystem.
Gannett CEO Mike Reed, in an opinion piece published Tuesday by Gannett-owned USA Today, said that the company is looking to "restore fair competition in a digital advertising marketplace that Google has demolished."
Reed claims that local news outlets are hurting because of unlawful bid-rigging practices used by Google.
"The core of the case and our position is that Google abuses its control over the ad server monopoly to make it increasingly difficult for rival exchanges to run competitive auctions," Reed wrote.
"These claims are simply wrong. Publishers have many options to choose from when it comes to using advertising technology to monetize – in fact, Gannett uses dozens of competing ad services, including Google Ad Manager," Dan Taylor, vice president of Google Ads said in a written statement. "And when publishers choose to use Google tools, they keep the vast majority of revenue. We'll show the court how our advertising products benefit publishers and help them fund their content online."
Gannett's lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks an unspecified amount of damages and injunctive relief. The Virginia company is seeking a trial by jury.
Michelle Chapman is an AP business writer
The Many Hires Jeremiah Wassom As Group Creative Director
Independent agency The Many has added Jeremiah Wassom as group creative director.
Wassom most recently worked a decade at Deutsch LA where, as SVP/creative director, he led the Taco Bell account and won new business for the agency. His agency past also includes AKQA and TBWAChiatDay. His creative work has touched the QSR, video games, automotive, fashion, and culture brand sectors. He also served eight years with the United States Marine Corps.
“Throughout his career, Jeremiah has helmed work that has not only made me personally jealous but has consistently pushed brands to show up in memorable and innovative ways,” said Josh Paialii, head of creative at The Many. “One look at his body of work and you will see his passion for storytelling and craft has raised the bar for entire categories, driving participation with many brands’ most loyal fans. Beyond being a world-class creative director and maker, Wassom is a proven team player and strategic thought leader. He’ll be a great addition to the leadership team at The Many working across all accounts. His role will be immediately felt as he guides and supports each of the creative leads in the department.”
A 20-year creative with agency, brand, and freelance experience, Wassom has forged a creative approach which focuses on crafting engaging connections rather than simply make ads. He sees the need for advertising to mean more, not simply do more.
The Many believes that true business growth is made possible by harnessing the power of participation and partners with brands to forge deeper connections with consumers, cultivate trust and loyalty, and maximize marketing spend and execution. The agency is built around a flexible model that offers a suite of capabilities, including... Read More