One of the United States's largest newspaper chains sued Google, accusing it of maintaining a monopoly over advertising and engaging in deceptive commercial practices.
The suit adds to the threats facing the search engine's ad business from antitrust officials and Congress.
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Gannett filed a federal lawsuit against Google on Tuesday in the Southern District of New York. The company, which owns more than 100 daily and 1,000 weekly papers in the U.S., alleged in its suit that Google's market dominance has significantly depressed ad revenue for the newspapers and has made competing extremely difficult.
The lawsuit is filed while the Senate considers the Journalism Competition and Preservation Act. This bill would allow local and conservative news outlets to band together to negotiate better rates from Big Tech platforms without running afoul of antitrust laws.
"Google has monopolized market trading to their advantage and at the expense of publishers, readers, and everyone else," Gannett CEO Michael Reed argued. "Digital advertising is the lifeblood of the online economy. Without free and fair competition for digital ad space, publishers cannot invest in their newsrooms."
The newspaper chain alleged that Google violates the Sherman Antitrust Act, the antitrust standard. It also said Google violates New York law prohibiting deceptive business practices.
"These claims are simply wrong," Dan Taylor, vice president of Google Ads, said in a statement sent to the Washington Examiner. Publishers have a multitude of options, Taylor said.
Google is facing several antitrust lawsuits from federal and state officials. The Department of Justice filed a suit in January, alleging that Google had excess dominance over online advertising. It also filed a suit in 2020 alleging that the search engine giant engaged in "anticompetitive and exclusionary practices" in search and advertising practices. The company also faces three antitrust lawsuits from groups of state attorneys general, including one organized by Texas Attorney General Ken Paxton, a Republican who was suspended from his role in late May amid an impeachment trial.
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Gannett made news last week after hundreds of journalists walked off the job in protest of cost-cutting measures while also demanding a change in leadership.
The JCPA advanced in the Senate last week and will be considered on the floor. The bill has been a point of contention since House Speaker Kevin McCarthy (R-CA) said the bill would be "dead on the floor" upon reaching the House.