Google Accused of Monopolizing Digital Advertising by PubMatic in Antitrust Lawsuit
In a significant move, advertising technology company PubMatic has filed an antitrust lawsuit against Google on September 8, 2025. The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, Case No. 1:25-cv-1482, alleges that Google's monopolistic conduct has caused substantial financial harm to PubMatic.
The complaint contends that Google's anticompetitive behavior severely limited PubMatic's ability to compete in markets it helped create. This is particularly evident in the period between 2018 and 2019, when PubMatic experienced an overall decline in its revenue growth rate. Many of its previously profitable customer accounts became unprofitable during this time.
The lawsuit points to Google's exchange, AdX, as a key factor in this decline. It is alleged that AdX was given unfair priority over competitors through the implementation of "First Look" and "Last Look" policies. Additionally, Google operated a covert "Sell-Side Dynamic Revenue Share" program that manipulated auction outcomes, further disadvantaging competitors like PubMatic.
One of the strategies Google employed was Project Poirot, described as a systematic effort to reduce competitor success. This project reportedly reduced bids that DV360 submitted to competing advertising exchanges, causing a significant impact. According to the lawsuit, Project Poirot's impact proved particularly severe, causing a nearly 20% revenue decline from 2017 to 2018.
The lawsuit also alleges that Google built its dominance through strategic acquisitions rather than innovation. A notable example is Google's acquisition of DoubleClick in 2008 for $3.1 billion, significantly above its internal valuation of $1.8-2.2 billion.
Google is also accused of actively misleading PubMatic and its customers about the causes of declining performance. For instance, it claimed that the decline in PubMatic's performance was due to inventory being flagged as fraudulent or spam, which was found to be untrue.
The complaint seeks monetary damages and injunctive relief following a federal court's determination that Google illegally monopolized critical digital advertising markets. Under UPR, Google prohibited publishers using DFP from setting higher floor prices for AdX than for other exchanges, another anticompetitive measure.
It is important to note that Rajeev Goel, the co-founder and CEO of PubMatic, was not called as a witness before the 2025 court case against Google, according to available sources.
PubMatic transformed digital advertising through breakthrough technologies, including pioneering real-time bidding in 2008. The decline in its performance, therefore, is a stark contrast to its past successes. The lawsuit aims to level the playing field and ensure fair competition in the digital advertising market.
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