![]() Gannett alleges that Google largely bars buyers using its exchange from participating in any others. While Google’s exchange controls more than 60 percent of the market, competitors have shares in the single digits, the suit says. Gannett also claims Google controls the ad exchange market, which organizes real-time auctions among potential buyers for ad space. DoubleClick now controls over 90 percent of the publisher ad server market, according to the complaint. The deal provided Google with direct access to website publishers, including their ad inventory, in addition to a significant presence with advertisers. Google in 2007 paid $3.1 billion to acquire DoubleClick, which had the industry-leading publisher ad server at the time of its purchase. By controlling the platform publishers use to sell their ad slots, Google forces them to “sell growing shares of that ad space at depressed prices,” Gannet alleges. The ad server identifies when an impression is available for sale, solicits bids and chooses the winning offer. Virtually every publisher in the country uses an ad server to manage their inventory of ad space, or so-called impressions. ![]() Google always wins because it takes a growing share of that shrinking pie.” That means less investment in online content and fewer ad slots for publishers to sell and advertisers to buy. “Further, Google’s exchange rigs its own auctions so Google’s advertisers can buy ad space at bargain prices. “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,” said Gannett CEO Mike Reed in opinion piece published Tuesday by company-owned USA Today. Google made $209 billion in ad sales in 2021, accounting for 81 percent of its revenue, according to the complaint filed by the Justice Department. “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.” While stressing that publishers keep the “vast majority” of revenue, he adds, “We’ll show the court how our advertising products benefit publishers and help them fund their content online.” “These claims are simply wrong,” he says. In a statement, Dan Taylor, vice president of Google Ads, disputed the allegations. antitrust enforcers have found that Google’s ad practices harm publishers, pointing to its ability and incentive to “exploit its position on both sides of a transaction to favour its own sources of supply and demand.” In January, the government and 17 state attorneys general filed an antitrust complaint against Google looking to split up the company, as did the European Commission last week. The complaint is the latest in a series of suits Google faces over its ad business. Google, as middleman, has dwarfed the content creators that invest in journalists, editors, photographers, and many others to produce important news content.” news publication made from digital advertising, combined. “That is six times more revenue than every single U.S. “In 2022 alone, Google made $30 billion from manipulating auctions for ad space across the internet,” states the suit. ![]() Google to Block News Search Products in Canada ![]() While the online ad market generates $200 billion a year, publishers have seen revenue drop by nearly 70 percent since 2009, according to the complaint, which notes that 170 Gannett publications have shuttered in the past four years. ![]() The company alleges Google is taking a monopolistic cut of revenue, leading to underinvestment in newsrooms and newspapers going out of business. In the complaint filed Tuesday in New York federal court, Gannett says Google has “carried out a sophisticated, anticompetitive, and deceptive scheme for well over a decade” to control the tools that publishers and advertisers use to buy and sell online ad space. The allegations, which mirror those lodged by the Department of Justice in a suit that seeks to break up the Alphabet-owned company, opens another front in a sprawling legal battle Google is fighting across the globe over its dominance in the digital ad market. Gannett, the country’s largest newspaper publisher, has sued Google, accusing the tech giant of having an illegal monopoly over the technology that powers online advertising. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |