Magnite, the biggest unbiased sell-side platform (SSP) within the advert business, filed a federal lawsuit in opposition to Google at the moment, alleging that the tech behemoth unlawfully monopolized the advert alternate and writer advert server markets. Google denies the allegations.
In an 81-page grievance reviewed by ADWEEK, Magnite claims that Google’s adtech practices restricted writer alternative, unfairly restricted competitors and shopper alternative, and hampered its enterprise.
“Google’s exclusionary conduct has drastically altered the availability paths by way of which obtainable show promoting stock is offered, decreasing payouts to publishers, burdening advertisers and publishers with lower-quality matches of ads to stock, and inhibiting alternative and innovation throughout the adtech stack,” the grievance reads.
The corporate alleges Google compelled advertisers who used Google Advertisements, beforehand often called AdWords, to purchase show advertisements by way of Google’s alternate, AdX, relatively than giving them the choice to make use of different exchanges. AdX’s intractable integration with Google’s advert server additional locked advertisers into Google’s adtech stack, the lawsuit says.
Google additionally manipulated advert auctions, implementing unfair pricing guidelines and adjusting revenue-sharing dynamically to favor Google, Magnite alleges.
In a single instance outlined within the lawsuit, Magnite factors to a 2017 scheme known as Undertaking Poirot internally at Google, which allegedly decreased bids from Google’s demand-side platform Show & Video 360 for impressions routed by way of rival exchanges.
Magnite claims that on account of Google’s anti-competitive adtech practices, it has misplaced income, market share, and scale. It cites cost-cutting efforts together with layoffs of greater than 13% of its employees—equating to over 100 jobs—in addition to compelled strategic shifts, and missed alternatives to make the most of rising advert codecs as tangible fallout from Google’s alleged conduct.
“Magnite was based to assist publishers thrive by maximizing their promoting yield by way of modern expertise, trusted steering, and a clear market that effectively connects them to consumers,” mentioned Michael Barrett, CEO of Magnite, in a press release. “For years, Google undermined our capacity to execute on this mission with practices that favored its personal enterprise over the well being of the open net, inflicting hurt to publishers, advertisers, and companions like us.”
The lawsuit mirrors the U.S. Justice Division’s landmark antitrust case in opposition to Google over its promoting enterprise practices—a case that resulted in a federal decide’s ruling in April that Google operated an unlawful monopoly in two adtech markets: advert exchanges and advert servers. That case is getting into its cures part subsequent week, the place Decide Leonie Brinkema of the U.S. District Court docket for the Jap District of Virginia will decide what adjustments Google should make to finish its monopoly and restore truthful competitors.
Google rejected Magnite’s allegations wholly.
“These allegations are meritless. Advertisers and publishers have many selections, and once they select Google’s advert tech instruments it’s as a result of they’re efficient, inexpensive, and straightforward to make use of,” an organization spokesperson mentioned in a press release to ADWEEK.
Magnite is the third main SSP to hit Google with an antitrust grievance throughout the final two months. In August, OpenX alleged that “rigged” digital advert auctions unlawfully deprived Google opponents and left publishers, advertisers, and shoppers with much less alternative—a narrative first reported by ADWEEK. Simply weeks later, one other related grievance was filed by PubMatic. All three lawsuits have been filed within the U.S. District Court docket for the Jap District of Virginia.
OpenX CEO John Gentry mentioned in a press release that whereas he received’t touch upon the specifics of ongoing authorized proceedings, “it’s a indisputable fact that there at the moment are a number of SSP lawsuits in opposition to Google.” He added that OpenX is dedicated to “guaranteeing truthful competitors.”
A spokesperson for PubMatic informed ADWEEK: “PubMatic’s litigation seeks to revive a aggressive and truthful adtech ecosystem for the good thing about your entire business. We welcome others within the business becoming a member of this effort to carry Google accountable for its anticompetitive practices, which restricted monetization alternatives for publishers, raised prices for advertisers, and finally decreased alternative for shoppers.”
Throughout the pond, Google is going through further stress from the E.U. Earlier this month, the corporate was hit with a $3.5 billion superb for antitrust violations stemming from its adtech enterprise.
In its case, Magnite is looking for financial damages in addition to injunctive aid, or mandates that will require Google to switch its conduct. The corporate is represented by Washington D.C. legislation agency Kressin Powers. Authorized representatives at Kressin Powers didn’t reply to a request for remark by press time.
Replace Sept. 16, 3:59 p.m. ET: This story has been up to date to incorporate a press release from PubMatic.
