News media organizations applauded a federal judge’s ruling Thursday that Google, the premier internet search engine, illegally monopolized the lucrative online advertising market.
U.S. District District Judge Leonie Brinkema ruled that Google, a $348 billion behemoth owned by Alphabet Inc., created a monopoly over advertising software used by publishers.
“This ruling is a significant victory for independent news organizations. For too long, Google’s monopolistic practices in the ad tech space have siphoned off critical advertising revenue, hindering our ability to fund quality journalism,” said Jennifer L. Bertetto, president and CEO of Trib Total Media. “Ultimately, this ruling will contribute to a more sustainable future for independent journalism, ensuring we can continue providing essential news and information to our communities.”
Google’s monopoly has allowed the company to force news publishers to use its services and offer lower payouts for ad space than they would otherwise receive in a competitive market, said William Cotter, president and CEO of the Pennsylvania NewsMedia Association.
“It’s a great day for the industry, as for many years, state and national news organizations have advocated for this result,” Cotter said. “Just as importantly, the ruling is a call to action for lawmakers who can fix the problem by passing the Journalism Competition and Preservation Act, which would address the market imbalance that has had a devastating impact on news media organizations in Pennsylvania and across the country.”
The News/Media Alliance, a trade association for the news and magazine publishing industry, hailed the court’s decision to hold Google accountable for years of abuse of its market power.
“Google’s monopolistic tactics — this time in the advertising market — have starved content creators of the revenues they deserve and need to sustain quality journalism,” said Danielle Coffey, News/Media Alliance president and CEO.
The association has spent years advocating on behalf of news media publishers against Google’s unlawfully anticompetitive actions, Coffey said.