OpenX has initiated a lawsuit against Google in the U.S. District Court, alleging that the tech giant uses unfair practices to gank its competitors in digital advertising and is seeking damages for incurred losses.
Details of OpenX's Lawsuit Against Google
The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia, containing 88 pages of allegations against Google. The document claims that the company consistently creates unfavorable conditions for smaller players in the market, preventing them from competing on equal terms. OpenX asserts that Google has exploited its commanding market share to 'rig the rules' for buying and selling digital advertising, to the detriment of OpenX and the entire industry.
Impact on the Digital Advertising Market
The complaint also argues that these practices 'stifle innovation, harm competition, lower product quality, and cause significant damage to both OpenX and Google’s own publisher and advertiser customers.' This claim is timely following a recent ruling by Judge Leonie Brinkema, who found Google illegally monopolized certain ad tech markets.
OpenX's Response and Google's Actions
OpenX, being a small player with only a minimal share of the ad exchange market, states that Google’s actions forced their ad server out of business, leading to its closure in 2019. John Gentry, the CEO of OpenX, stated, '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.' OpenX is seeking a jury trial, financial damages, and a court order to end Google’s unfair practices.
Thus, OpenX's lawsuit against Google raises significant questions about competitiveness in the digital advertising market, and consequently captures the attention of advocacy groups and the industry at large.
