A West Virginia news publisher filed an antitrust action against Google and Facebook, Receiving about half of all digital advertising dollars in the United States and facing antitrust fees from federal and state officials.
HD Media has several newspapers in the state, including Herald-Dispatch and Charleston Gazette-Mail in Huntington.
HD Media claims that Google has monopolized the online advertising market so much that it “threatens the extinction of local newspapers across the country.” The lawsuit also alleges that Google and Facebook conspired to further their dominance in a collusion, citing a lawsuit filed by 10. Republican chief prosecutors in December.
Beyond saying that Google’s ability to “effectively monetize its content” by allowing the news publisher to take a non-competitive share of its advertising revenue, the company does not state the impact of Facebook and Google’s behavior on its business. A lawyer for the company refused to speak on the record.
David Chavern, head of the news trade group News Media Alliance, said it was the first antitrust case against a tech platform focused on news broadcasting. He said the group was not involved in the case.
HD Media applied to the federal court in West Virginia and requested a jury action. He requested unspecified damages and demanded that the court prevent Google and Facebook from alleged anti-competitive behavior.
The newspaper industry has experienced a long decline, with sharp job losses and publication thinning or even disappearing. Online advertising revenue could not compensate for print advertising losses.
Federal and state antitrust officials have sued both Google and Facebook in recent months. The Justice Department claims that Google is abusing its dominance in online search and advertising.
Facebook did not immediately respond to the request for comment. Google directed a reporter to a blog post Released in mid January By economic policy manager Adam Cohen, who defended Google’s work against antitrust charges brought by the Texas attorney general in December.