Adtech firm OpenX has filed a lawsuit against Google, alleging that the company used unfair methods to undermine competitors in the digital advertising industry and is pursuing damages for the losses incurred. OpenX submitted an antitrust suit in the U.S. District Court for the Eastern District of Virginia on Monday, aligning with an existing action by the Department of Justice.
According to a Business Insider report, the detailed 88-page complaint alleges that Google has been putting smaller companies at a disadvantage, successfully preventing them from engaging on equal terms. OpenX mentioned that Google has exploited its commanding market share in digital advertising “to rig the rules by which digital advertising is bought and sold, to the detriment of OpenX and the entire industry.”
OpenX sues Google for alleged ad market misconduct
In its complaint, the firm argues that these practices have “stifled innovation, harmed competition, decreased product quality and caused significant damage to OpenX, as well as to Google’s own publisher and advertiser customers.” The recent OpenX lawsuit comes after a notable April decision that went against Google’s practices. As reported by Cryptopolitan, Judge Leonie Brinkema ruled that Google unlawfully monopolizes certain ad tech markets.
The verdict came after a trial in which the DOJ accused Google of reinforcing its dominance through strategic acquisitions and manipulative auction practices, ultimately finding the company liable for cornering the publisher, server, and ad exchange sectors. Google offers tools for publishers, advertisers, and an ad exchange all in one.
The court mentioned that giving Google all three services gives it too much control over ads and could force a breakup of its adtech arm. Google announced its plan to appeal, with a remedies hearing on September 22. OpenX emphasizes its status as a small player, holding just a minimal fraction of the ad exchange market. It claims that Google’s conduct forced its ad server out of business, leading to its closure in 2019.
The complaint added the tricks Google forced publishers to drop OpenX through illegal package deals, rigged auctions so OpenX lost more bids, and secretly funneled ad dollars to its exchange. OpenX wants a jury trial, financial damages, and a court order to stop Google’s unfair tactics.
“Now that the Court has found Google’s conduct to be illegal and anticompetitive, this lawsuit seeks to recover damages for the harm caused to us and our shareholders, and to help ensure fair competition going forward,” said OpenX Chief Executive John Gentry in a statement.
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