Magnite files antitrust lawsuit against Google in US court

New Delhi: Magnite, the largest independent sell-side platform (SSP) in the advertising industry, has filed a federal lawsuit against Google, accusing the company of unlawfully monopolising ad exchange and publisher ad server markets. Google has denied the allegations, Adweek reported.

The 81-page complaint alleges that Google’s conduct restricted competition, limited publisher choice, and reduced advertising revenues. The filing claims advertisers using Google Ads were compelled to buy display ads via Google’s exchange, AdX, due to its integration with Google’s ad server, locking participants into its adtech stack.

Magnite also accuses Google of manipulating ad auctions through unfair pricing rules and revenue-sharing practices. One example cited is “Project Poirot”, a scheme in 2017 that allegedly reduced bids from Google’s Display & Video 360 platform for impressions routed through rival exchanges.

The company said it has lost profits, market share and opportunities as a result of these practices. Magnite pointed to cost-cutting measures including staff reductions of more than 13% and strategic shifts as part of the fallout. Chief executive Michael Barrett said in a statement that Google’s conduct undermined its ability to support publishers and the open web.

The case mirrors the US Justice Department’s wider antitrust action against Google, where a federal judge ruled earlier this year that the company operated an illegal monopoly in two adtech markets. That case is moving into its remedies phase, where potential structural or operational changes will be determined.

Google rejected the claims. A spokesperson told Adweek, “These allegations are meritless. 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.”

Magnite is the third SSP to file such a lawsuit against Google in recent months. OpenX and PubMatic both lodged complaints in the US District Court for the Eastern District of Virginia, alleging that Google’s conduct distorted digital ad auctions and limited opportunities for rivals.

Beyond the US, Google was fined $3.5 billion by the European Union earlier this month for antitrust violations linked to its adtech operations.

In its filing, Magnite is seeking damages and injunctive relief that would require Google to alter its business practices. The company is represented by Washington D.C. law firm Kressin Powers, Adweek reported.