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Publisher Gannett files lawsuit accusing Google of unfair ad monopoly

Media firm Gannett filed a lawsuit on Tuesday against Google, accusing the tech giant of unfair practices when it comes to its digital advertising. File Photo by John Angelillo/UPI
Media firm Gannett filed a lawsuit on Tuesday against Google, accusing the tech giant of unfair practices when it comes to its digital advertising. File Photo by John Angelillo/UPI | License Photo

June 20 (UPI) -- Media company Gannett filed a lawsuit on Tuesday against Google, accusing the tech giant of unfair practices when it comes to its digital advertising.

The federal suit, filed in U.S. District Court for the Southern District of New York, demands a trial by jury.

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Gannett, the publisher of USA Today and 200 smaller newspapers, is accusing Google of monopolizing the advertising business.

"Google controls 90% of the market for 'publisher ad servers,' which publishers use to offer ad space for sale," Virginia-based Gannett said in a statement.

"Google also controls over 60% of the market for 'ad exchanges,' which run auctions among advertisers bidding for ad space on publishers' websites."

The lawsuit itself does not specify monetary amounts, but Gannett is looking for "substantial damages," the Wall Street Journal reported.

"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," Gannett chief executive officer Michael Reed said in the company's statement.

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Google and its parent Alphabet Inc., have denied any wrongdoing.

"These claims are simply wrong," Google Ads Vice President Dan Taylor told USA Today in a statement.

"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. 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."

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