PubMatic Sues Google for $100B Over Alleged Ad Tech Monopoly

Google, the tech giant, has once again found itself in the midst of an antitrust controversy. The company is facing a lawsuit from the advertising exchange platform PubMatic, which alleges that Google has illegally monopolized the advertising technology market. PubMatic is seeking damages in the tens of billions of dollars. Google has dismissed the lawsuit as "baseless," asserting that advertisers and websites choose its tools because they are "efficient, cost-effective, and easy to use."

Rajeev Goel, the CEO of PubMatic, stated that while a previous court ruling that found Google to have illegally maintained a monopoly in the advertising technology sector was significant, it was not comprehensive enough. He emphasized that the lawsuit is not just about financial compensation but also about ensuring the proper functioning of the online advertising market. Goel noted that over the years, PubMatic has faced obstacles that are not due to technological limitations but rather to Google's illegal monopoly. He claimed that whenever PubMatic makes adjustments or innovations, Google finds new ways to manipulate the situation.

PubMatic provides advertising space sales services to various websites, including the social media platform X. According to documents and testimonies from last year's antitrust trial, Google considered acquiring PubMatic in 2011 but ultimately chose to acquire the advertising technology provider AdMeld.

The lawsuit was filed on Monday in the Federal Court of Virginia. This is the second lawsuit filed by an advertising exchange platform against Google this year, following a federal judge's ruling in April that Google had illegally monopolized two key technology markets: the advertising exchange platform and the tools used by websites to sell advertising space, known as ad servers.

Last month, another advertising exchange platform, OpenX Technologies, also filed a lawsuit against Google in the same Virginia court. Google is also facing a lawsuit led by the state of Texas, as well as numerous lawsuits from website publishers and advertisers who allege that Google's actions have caused them harm. These lawsuits are currently being heard in New York, while Google has sought to transfer the OpenX case to New York, although the judge has yet to rule on this request.

In April, a Virginia judge supported the allegations made by the U.S. Department of Justice and several states, and scheduled another trial for this month to determine whether Google must divest some of its advertising businesses to correct its illegal behavior. Last Friday, the U.S. Department of Justice stated that Google should be immediately required to sell its advertising exchange platform AdX and ensure that its technology is interoperable with competitors. Google, however, has stated that it does not need to sell its business but will make its advertising exchange platform compatible with competitors' technologies and install monitoring mechanisms over the next three years to ensure compliance.