OpenX filed an antitrust lawsuit claiming Google used unfair tactics to block competition
OpenX, an adtech firm, filed a lawsuit against Google, alleging that the tech giant used unfair methods to undermine its competitors in the digital advertising space and is pursuing damages for the losses incurred.
On Monday, OpenX submitted an antitrust suit in the U.S. District Court for the Eastern District of Virginia, aligning with an existing action by the Department of Justice. Business Insider reported that the detailed, 88-page complaint alleges that Google has consistently put smaller companies at a disadvantage, effectively preventing them from engaging on equal terms.
OpenX says 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.”
The complaint 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.”
This move by OpenX comes after a notable April decision by Judge Leonie Brinkema, reported by Cryptopolitan. The judge determined that Google unlawfully monopolizes certain ad tech markets.
The verdict followed 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 ad server and ad exchange sectors.
Court says Google’s ad business may be split up
Google offers tools for publishers, advertisers, and an ad exchange all in one. The court said that giving Google all three services gives it too much control over ads and could force a breakup of its adtech arm. Google plans 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 own exchange.
“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.
OpenX wants a jury trial, financial damages, and a court order to stop Google’s unfair tactics.
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