PubMatic filed a billion-dollar lawsuit against Google, accusing it of running an illegal ad-tech monopoly.
The legal action comes after a court ruling that Google monopolized publisher ad server and exchange markets.
Google is under global scrutiny, facing legal challenges and fines, including a $3.5 billion penalty from the EU.
Google dismisses the lawsuit as meritless, asserting its ad-tech tools are chosen for their effectiveness and affordability.
The lawsuit aligns with the federal antitrust case's remedies phase, potentially leading to Google divesting parts of its ad business.
Ad-tech company PubMatic is suing Google for allegedly running an illegal monopoly in the digital advertising market and is seeking billions in damages. The complaint makes PubMatic the second ad exchange to challenge Google in court for anticompetitive behavior, after rival OpenX filed a similar suit last month.
A tilted playing field: The legal action follows an April federal court ruling that found Google illegally monopolized the publisher ad server and ad exchange markets. In a statement, PubMatic CEO Rajeev Goel claimed his company has been "competing on a tilted playing field where greed superseded innovation and coercion blocked transparency."
The pile on: PubMatic’s complaint joins a growing list of legal challenges to Google's ad-tech business. That list now includes publisher People Inc., which sued in late August, and ad-tech firm Magnite, which has suggested it could be next.
The 'meritless' defense: A Google spokesperson called the allegations "meritless," stating that "advertisers and publishers have many choices and when they choose Google’s ad tech tools it’s because they are effective, affordable and easy to use."
The lawsuit lands as the remedies phase for the federal government's successful antitrust case against Google is set to begin this month, a process that could force Google to divest parts of its ad business.
The legal pressure on Google's ad-tech practices is global, with the EU having recently hit the company with a $3.5 billion fine for similar behavior. However, a forced breakup is no certainty; in a separate U.S. antitrust case, a judge ruled against forcing Google to spin off its Chrome browser and Android operating system.
