Google, Facebook Made ‘Secret Deal’ That Could Force Extinction of Newspaper Industry, Lawsuits Claim

Google and Facebook are pushing the newspaper industry to the brink of extinction through ant-competitive behavior, including a “secret deal” that allowed the pair to monopolize the digital advertising market, new lawsuits allege.

Three near identical lawsuits were filed Monday in different districts against the tech giants by local publishers WV News, Gale Force Media and Flag Publications. 

In each of the lawsuits, the publishers explain how newspapers across the country compete for revenue in the digital advertising market. The lawsuits alleges Google monopolizes that market to such an extent that it threatens the end of local newspapers across the country. 

“There is no longer a competitive market in which newspapers can fairly compete for online advertising revenue,” the lawsuits allege. “The freedom of the press is not at stake; the press itself is at stake.” 

Although this is not a class action lawsuit, millions of consumers rely on the news industry as a pillar of an informed society. Top Class Actions will continue to monitor this story to keep readers informed.

Google created a monopoly through hundreds of mergers and acquisitions that gave it dominion over all sellers, buyers, and middlemen in the marketplace, the lawsuits allege. The reduction in revenues to newspapers across the country were directly caused by Facebook and Google’s conduct and “went directly into Google’s coffers,” the claims allege.

The publishers say Google and Facebook then conspired to further their worldwide dominance of the digital advertising market through a “secret deal” where Facebook would bid for ads through Google’s ad server, in exchange for Google agreeing to give Facebook preferential treatment in its auctions. 

Alleged Antitrust Actions Threatens Newspaper Industry, Lawsuits Claim

The alleged antitrust actions were presenting “a very real threat” to the existence of newspapers in the United States, the lawsuits claim. Google and Facebook monopolized the digital advertising market, strangling a primary source of revenue for newspapers across the country. 

“This antitrust action is brought to seek all remedies afforded under law,” the lawsuits state.

The lawsuits reference a recent antitrust investigation into the digital advertising market done by the U.S. House Judiciary Committee, Subcommittee on Antitrust, Commercial, and Administrative Law. 

The report also allegedly found Google and Facebook’s anti-competitive and monopolistic practices have had a “profound effect upon the country’s free and diverse press.” 

The report launched antitrust complaints filed by the Federal Trade Commission, the U.S. Department of Justice, and 46 State Attorneys General against Google and Facebook, the lawsuits say.

Google, Facebook Have a Past of Numerous Antitrust Lawsuits

Texas, Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota, and Utah all joined in a complaint filed in December claiming Google violates antitrust laws. 

This is just the latest in a sweep of antitrust lawsuits against Facebook and Google. In March, Facebook argued it should not have to face antitrust allegations from the 46 state attorneys general. 

WV News, which publishes nine newspapers and print publications, filed in the Northern District of West Virginia. New Jersey publisher Gale Force Media, which owns one newspaper that’s been in business since 1890, filed in the District of New Jersey. Maryland’s Flag Publications owns two community newspapers and filed in the District of Maryland.

The three publishers allege two distinct antitrust causes of action under the Sherman Act. 

The first claim is that Google unlawfully exercised monopoly power of the digital advertising market. Second, that Google and Facebook unlawfully conspired to engage in anticompetitive conduct. The publishers are also suing for unjust enrichment. 

The group of publishers are seeking an order declaring that Facebook and Google violated the law, damages, including treble damages, punitive and restitution, an order preventing Google and Facebook from continuing the alleged behaviours, interest, costs, fees and jury trials.

The plaintiffs are represented by Paul T. Farrell, Jr. and Michael J. Fuller, Jr. of Farrell & Fuller, LLC, Robert P. Fitzsimmons, Clayton J. Fitzsimmons and Mark A. Colantonio of Fitzsimmons Law Firm PLLC , Paul J. Geller and Stuart A. Davidson of Robbins Geller Rudman& Dowd LLP, David W. Mitchell and Steven M. Jodlowski of Robbins Geller Rudman & Dowd LLP, John C. Herman and Serina M. Vash of Herman Jones LLP and Rachel A. Jarvis, Esq. of Rachel A. Jarvis, Esq. PLLC 

The Facebook Google Antitrust Press Publishing Industry Class Action Lawsuits are Clarksburg Publishing Company v. Google, LLC and Facebook, Inc., Case 1:21-cv-00051-IMK, in the U.S. District Court for the Northern District of West Virginia, Gale Force Media, LLC v. Google, LLC and Facebook, Inc, Case No. 2:21-cv-09716-WJM-ESK, in the U.S. District Court for the District of New Jersey, and Flag Publications, Inc. v. Google, LLC and Facebook, Inc, Case No. 1:21-cv-00965-SAG, in the U.S. District Court for the District of Maryland.

Read About More Class Action Lawsuits & Class Action Settlements:

• Google, Facebook, Amazon Antitrust Class Action Lawsuit Targets Digital Ads
• Do You Qualify: Gambling Apps | Apple and Google Class Action Lawsuit Investigation
• Facebook Wants To Delete the Massive Antitrust Lawsuit Filed by 46 States
• Do You Qualify: DSL Extreme trueSTREAM Internet Class Action Lawsuit Claim Review