By Kendra Barnett

Copyright adweek

Magnite, the largest independent sell-side platform (SSP) in the ad industry, filed a federal lawsuit against Google today, alleging that the tech behemoth unlawfully monopolized the ad exchange and publisher ad server markets. Google denies the allegations.

In an 81-page complaint reviewed by ADWEEK, Magnite claims that Google’s adtech practices limited publisher choice, unfairly restricted competition and consumer choice, and hampered its business.

“Google’s exclusionary conduct has drastically altered the supply paths through which available display advertising inventory is sold, reducing payouts to publishers, burdening advertisers and publishers with lower-quality matches of advertisements to inventory, and inhibiting choice and innovation across the adtech stack,” the complaint reads.

The company alleges Google forced advertisers who used Google Ads, previously known as AdWords, to buy display ads via Google’s exchange, AdX, rather than giving them the option to use other exchanges. AdX’s intractable integration with Google’s ad server further locked advertisers into Google’s adtech stack, the lawsuit says.

Google also manipulated ad auctions, implementing unfair pricing rules and adjusting revenue-sharing dynamically to favor Google, Magnite alleges.

In one example outlined in the lawsuit, Magnite points to a 2017 scheme referred to as Project Poirot internally at Google, which allegedly reduced bids from Google’s demand-side platform Display & Video 360 for impressions routed via rival exchanges.

Magnite claims that as a result of Google’s anti-competitive adtech practices, it has lost profits, market share, and scale. It cites cost-cutting efforts including layoffs of more than 13% of its staff—equating to over 100 jobs—as well as forced strategic shifts, and missed opportunities to take advantage of emerging ad formats as tangible fallout from Google’s alleged behavior.

“Magnite was founded to help publishers thrive by maximizing their advertising yield through innovative technology, trusted guidance, and a transparent marketplace that efficiently connects them to buyers,” said Michael Barrett, CEO of Magnite, in a statement. “For years, Google undermined our ability to execute on this mission with practices that favored its own business over the health of the open web, causing harm to publishers, advertisers, and partners like us.”

The lawsuit mirrors the U.S. Justice Department’s landmark antitrust case against Google over its advertising business practices—a case that resulted in a federal judge’s ruling in April that Google operated an illegal monopoly in two adtech markets: ad exchanges and ad servers. That case is entering its remedies phase next week, where Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia will determine what changes Google must make to end its monopoly and restore fair competition.

Google rejected Magnite’s allegations wholly.

“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,” a company spokesperson said in a statement to ADWEEK.

Magnite is the third major SSP to hit Google with an antitrust complaint within the last two months. In August, OpenX alleged that “rigged” digital ad auctions unlawfully disadvantaged Google competitors and left publishers, advertisers, and consumers with less choice—a story first reported by ADWEEK. Just weeks later, another similar complaint was filed by PubMatic. All three lawsuits have been filed in the U.S. District Court for the Eastern District of Virginia.

OpenX CEO John Gentry said in a statement that while he won’t comment on the specifics of ongoing legal proceedings, “it is a fact that there are now several SSP lawsuits against Google.” He added that OpenX is committed to “ensuring fair competition.”

A spokesperson for PubMatic told ADWEEK: “PubMatic’s litigation seeks to restore a competitive and fair adtech ecosystem for the benefit of the entire industry. We welcome others in the industry joining this effort to hold Google accountable for its anticompetitive practices, which limited monetization opportunities for publishers, raised costs for advertisers, and ultimately reduced choice for consumers.”

Across the pond, Google is facing additional pressure from the E.U. Earlier this month, the company was hit with a $3.5 billion fine for antitrust violations stemming from its adtech business.

In its case, Magnite is seeking monetary damages as well as injunctive relief, or mandates that would require Google to modify its behavior. The company is represented by Washington D.C. law firm Kressin Powers. Legal representatives at Kressin Powers did not respond to a request for comment by press time.

Update Sept. 16, 3:59 p.m. ET: This story has been updated to include a statement from PubMatic.