Adtech firm OpenX is suing Google, alleging the tech giant’s monopolistic ad practices destroyed its ad server business and demanding hundreds of millions in damages. The lawsuit follows a major DOJ victory against Google’s ad tech division in the same court just four months ago.
Stacking the deck: The complaint claims Google’s "Project Poirot" program and other manipulative tactics were used to rig ad auctions. The direct result, according to the filing, was the closure of OpenX's ad server division in 2019 and the termination of nearly half its workforce.
Following the playbook: OpenX’s legal action targets the same conduct—auction manipulation and illegal tying arrangements—that led a Virginia federal court to rule that Google operates an illegal monopoly in its ad tech business earlier this year. The filing alleges Google's actions "stifled innovation" and "harmed competition."
Awkward partners: The lawsuit creates a complicated reality for both companies. Even as OpenX accuses Google of crippling its business, it remains a key Google Cloud partner and collaborates with Google on other industry initiatives.
The bottom line: The OpenX suit shows the legal fallout from Google's ad tech monopoly ruling is far from over, opening the door for more private companies to seek damages. But Google isn't the only giant facing trustbusters; agricultural equipment maker Deere & Co. is also being forced to face an FTC lawsuit over alleged repair monopolies. Meanwhile, in an industry where late payments are reportedly rampant, both Google and OpenX are ironically cited as rare examples of firms that always pay on time.
