American newspapers are suing Google and Facebook. They accuse them of declining incomes

A group of 30 companies, representing about 200 US newspapers, is suing Google and Facebook. He claims that technology giants are unfairly manipulating the advertising market, which directly damages their publications. The Gizmodo portal informed about the news.

In the lawsuit, they accuse Google and Facebook of monopolizing the digital advertising market through illegitimate practices. They want to get compensation from the giants in court for the damage caused. If they win, they have a chance to get so-called “triple compensation,” with which Facebook and Google would have to pay them up to three times the proven damage.

Their frustration is understandable, as the industry has not been very successful in recent years. A Pew Research study last year showed that newspaper advertising revenue had fallen by an incredible 62% over the past decade. While they made $ 37.8 billion in 2008, it was only $ 14.3 billion in 2018. This is also related to a significant decline in print sales and a decreasing number of employees in newsrooms each year.

Google does not see a direct link between its success and the decline of journalism

However, Google claims that it cannot blame the decline of journalism in the United States and that it is trying to help it survive in the digital world. The fees for using its advertising space are among the lowest in the industry, and publishers can retain the vast majority of the revenue they receive through Google products. The company has also supported quality publications with billions of dollars in the past.

However, compared to what Google earns each year, it’s clear why newspapers feel that the technology giant can do more for them. In 2020 alone, Alphabet, Google’s parent company, made $ 183 billion. More than 80% of this came from advertising.