McClatchy Media accuses Google in federal court of monopolizing online ad sales

McClatchy Media Company filed a federal lawsuit Wednesday against Google, alleging the tech company is undercutting its business by illegally monopolizing the online advertisement market, according to a federal complaint.

Google’s control over the market has allowed it to make more money on ad sales at the expense of publishing companies, which rely on the revenue stream to stay in business, according to the complaint.

United States media giants from Gannett to Penske Media have made similar claims against Google and its parent company, Alphabet Inc., citing a violation of antitrust laws through a manipulation of the market, sales and search dominance.

Google “rigged” the market, so publishing companies need to use its ad server to reach major advertisers, effectively squashing any competition, according to the 94-page complaint filed in U.S. District Court for the Southern District of New York.

McClatchy alleges it has suffered substantial economic losses as a result.

McClatchy CEO Tony Hunter said in a statement that the company is challenging “what we believe are long-standing monopolistic practices in the advertising technology marketplace.”

“We are pursuing this case to help restore competition and accountability. Because this is active litigation, we will not comment further,” Hunter said.

McClatchy Media operates 30 newsrooms nationwide, including The Kansas City Star, Miami Herald, The Sacramento Bee, Fort Worth Star-Telegram, The Charlotte Observer and The News & Observer in Raleigh.

The media company and its subsidiaries made seven claims against Google, including common law fraud, unjust enrichment and unlawful deceptive acts or practices. The companies are being represented in the lawsuit against Google by the law firm Kellogg, Hansen, Todd, Figel & Frederick.

A spokesperson for Google told the Miami Herald the allegations are meritless.

“Advertisers and publishers have many choices and when they choose Google’s ad tech tools, it’s because they are effective, affordable and easy to use,” a spokesperson said.

The Department of Justice has claimed victory in two antitrust cases against Google in recent years based on similar claims.

In August 2024, a federal judge in Washington, D.C., opined in a case about Google’s dominance of online searches and the accompanying advertising revenue that the company “is a monopolist, and it has acted as one to maintain its monopoly.”

Last April, a federal judge in Virginia ruled that Google has engaged in some monopolistic practices related to online advertising. Judge Leonie Brinkema has said she will decide on a remedy sometime this year.

Following Brinkema’s April ruling, Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division said in a statement that Google “is a monopolist and has abused its monopoly power.”

McClatchy’s complaint accuses Google of “much of the same conduct.”