Crowsnest Pass Herald suing Google, Facebook

Sotos Class Actions of Toronto has issued a statement of claim against Google and Facebook March 16 on behalf of the Crowsnest Pass Herald, a community newspaper that serves the Crowsnest Pass area of southwest Alberta. The class action claims damages of one billion dollars against the two tech companies, alleging that Google and Facebook entered into an agreement that allowed them to benefit financially at the expense of other digital publishers.

The statement of claim alleges the two companies engaged in a conspiracy to rig online ad auctions, allocate markets, and fix and maintain prices in the market for display advertising, contrary to the Competition Act. It further alleges that publishers and advertisers suffered significant damages as a result.

Crowsnest Pass Herald publisher Lisa Sygutek has long been a community supporter, serving two terms as a town councilor, and is actively involved in her industry association, currently serving as Vice President of the Alberta Weekly Newspapers Association and a member of its Government Affairs committee. Lisa views this action as another way to help her fellow newspaper publishers stay healthy and vibrant in their communities.

Similar legal actions against the two companies have been initiated in the U.S., by the Federal Trade Commission, more than 40 states and by a group of more than 200 newspapers across dozens of states. The lawsuits accuse Google of harming competitors by engaging in false, deceptive, or misleading acts while operating its online ad exchange. It is also alleged that Facebook illegally teamed up with the search giant, one of its biggest competitors in digital advertising.

What started as a small-town community newspaper effort to take a stand against the big tech companies, has turned into a national movement. The News Media Alliance, a national trade group, has not been involved in the litigation, but has been monitoring the lawsuits.

“We fully support this litigation,” News Media Alliance general counsel Danielle Coffey said in a statement.

The Alberta Weekly Newspapers Association and News Media Canada are not directly involved in the Sotos Class Action.