Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Rebecca Zisser/Axios

The News Media Alliance (NMA), a newspaper trade group that represents over 2,000 newspapers in the U.S., is asking Congress for an antitrust safe harbor against Google and Facebook. David Chavern, the CEO and President of the Alliance, tells Axios:

Ultimately, we need a better deal from a distorted system.

At issue: The group — with support from members like The New York Times, Washington Post and The Wall Street Journal — argues that existing media competition laws prevent news organizations from working together to negotiate better deals with major internet platforms, unintentionally enabling Google and Facebook to continue to control the digital advertising ecosystem and information economy.

Why it matters: With the support of every major print publication, this is the first big step media industry leaders are taking to rally government action against the Google-Facebook duopoly. In Europe, the duopoly's dominance has been fiercely challenged by antitrust regulators, but in the U.S. regulators have largely ignored the issue, allowing Google and Facebook to grow to a point where they control over 60% of the U.S. digital ad market and over 50% of the global digital ad market. Meanwhile, media companies' ad revenues continue to decline.

The strategy: Chavern has written an op-ed in the Wall Street Journal outlining his position, but says NMA is not calling out any specific lawmakers or committees at this time. "We are just starting to work the Hill," NMA Chairman Michael J. Klingensmith, publisher and CEO of the Minneapolis Star Tribune Media, tells Axios. Klingensmith adds that there's an attachment to local news organizations that lawmakers will want to see sustained, which is an encouraging sign.

By the numbers: There's unquestionable evidence that the duopoly's dominance has created a media economy that is unsustainable for news publishers.

  • 60% of total U.S. digital ad revenue will go to Google and Facebook this year, per eMarketer estimates — roughly $73 billion.
  • Nearly 80% of all digital search ad revenue in the U.S. will go to Google this year and nearly 40% of all digital display ad revenue in the U.S. will go to Facebook, per eMarketer.
  • 83% of every new digital ad dollar will go to the duopoly this year, according to calculations from Digital Content Next, the premium publishers association.

By comparison, the print industry brings in roughly $18 billion in advertising revenue (both print and digital), nearly a third of what it was just 10 years ago, according to Pew. That's roughly the same as all of Facebook's U.S. digital ad revenue and less than half of Google's.

The impact on news: The group also argues that the Facebook and Google's dominance has created an unhealthy media economy and news environment, where the duopoly benefits from investments made by news companies, and consumers are less likely to connect with news brands. To combat this, they're looking for Google and Facebook to make four key changes:

  1. Increase advertising revenue sharing: Facebook has made revenue sharing updates to Instant Articles and video over the past few months, but the industry argues it's not enough. "It's a promise that hasn't materialized," Klingensmith says.
  2. Create more support for news subscription models: This includes a way to drive subscriptions through Facebook and amend Google's first-click policy that allows access to content past paywalls. There are rumors that Facebook is adding a publisher subscription feature for mobile.
  3. Improve data sharing: Give newspaper publishers more data about their own readers on both platforms. "When our content is being read on Facebook, that audience is invisible to us," Klingensmith says.
  4. Develop better brand support: They argue that brand is at the core of the news business and Google and Facebook have come between consumers and the brand. A new Pew/Knight Foundation study conducted earlier this year found that 10% of respondents exposed to news articles on Facebook thought the news source was Facebook.

Campbell Brown, Head of News Partnerships at Facebook tells Axios: "We're committed to helping quality journalism thrive on Facebook. We're making progress through our work with news publishers and have more work to do."A spokesperson from Google says: "We want to help news publishers succeed as they transition to digital. In recent years we've built numerous specialized products and technologies, developed specifically to help distribute, fund, and support newspapers. This is a priority and we remain deeply committed to helping publishers with both their challenges, and their opportunities."

Go deeper

Off the Rails

Episode 5: The secret CIA plan

Photo illustration: Aïda Amer, Sarah Grillo/Axios. Photo: Zach Gibson/Getty Images

Beginning on election night 2020 and continuing through his final days in office, Donald Trump unraveled and dragged America with him, to the point that his followers sacked the U.S. Capitol with two weeks left in his term. This Axios series takes you inside the collapse of a president.

Episode 5: Trump vs. Gina — The president becomes increasingly rash and devises a plan to tamper with the nation's intelligence command.

In his final weeks in office, after losing the election to Joe Biden, President Donald Trump embarked on a vengeful exit strategy that included a hasty and ill-thought-out plan to jam up CIA Director Gina Haspel by firing her top deputy and replacing him with a protege of Republican Congressman Devin Nunes.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Health: CDC director defends agency's response to pandemic — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Empire State Building among hundreds to light up in Biden inauguration coronavirus tribute.
  3. Vaccine: Fauci: 100 million doses in 100 days is "absolutely" doable.
  4. Economy: Unemployment filings explode again.
  5. Tech: Kids' screen time sees a big increase.

Biden Cabinet confirmation schedule: When to watch hearings

Joe Biden and Kamala Harris on Jan. 16 in Wilmington, Delaware. Photo: Angela Weiss/AFP via Getty Images

The first hearings for President-elect Joe Biden's Cabinet nominations begin on Tuesday, with testimony from his picks to lead the departments of State, Homeland and Defense.

Why it matters: It's been a slow start for a process that usually takes place days or weeks earlier for incoming presidents. The first slate of nominees will appear on Tuesday before a Republican-controlled Senate, but that will change once the new Democratic senators-elect from Georgia are sworn in.