Google is being sued in the US for billions of dollars in damages over allegations it illegally monopolised the advertising technology market.
The lawsuit filed at the US District Court for the Eastern District of Virginia against the tech giant on Monday alleges that it abused its dominant position in the digital advertising industry “for years” to shut out its rivals.
In its complaint, ad tech company PubMatic alleges that Google engaged in “anti-competitive” practices to line up its own pockets at the expense of website publishers and advertisers.
“Google’s systematic abuse of its vast resources and immense power has harmed our business and distorted a marketplace that should have rewarded innovation and fuelled transparency and competition. Instead, anticompetitive practices limited monetisation for publishers, raised costs for advertisers, and ultimately reduced choice for consumers,” said Rajeev Goel, Cofounder and CEO of PubMatic.
Why it matters:
This is the second lawsuit by an advertising exchange in the last month against Google over its alleged monopolistic and anti-competitive behaviour in the ad tech space. In August, OpenX Technologies sued the tech giant in the same Virginia court for rigging ad auctions.
In January 2023, the US Department of Justice (DOJ) filed an antitrust suit against Google, alleging that the company used its dominance to control both the supply and demand sides of online advertising.
Launched in 2000, Google Ads enables sites to sell ads on their platforms, as well as advertisers to purchase that ad space, with the tech giant taking a sizable cut of the ad revenue from both parties. In Q2 2025, Google’s advertising revenue stood at $71.34 billion, up 10% from $64.61 billion in the corresponding quarter last year.
Essentially, the company reduced competition in the ad tech space by eliminating rivals through a series of acquisitions or forcing publishers and advertisers to use its products while undermining their ability to use alternatives, the US Justice Department claimed.
For instance, the $3.1 billion acquisition of DoubleClick in 2007 gave Google access to an online marketplace for publishers looking to sell ads on their platform. Now, DoubleClick – which has since been rebranded as Google Ad Manager – has over 50% market share in the open web display advertising.
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Google Neck-Deep In Legal Trouble:
The tech giant is facing several lawsuits worldwide, including in India, for alleged anti-competitive practices. In August, a US federal judge ruled that the company had unlawfully built a monopoly over the online search market in the DOJ antitrust case.
While Google will not have to sell its Chrome web browser, it must share data with rivals. The landmark ruling has also effectively banned the tech giant from entering into any exclusive contracts with OEMs for preloading Google Search, Chrome, Google Assistant or the Gemini…
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