Claims of Tying, Bid Rigging and Inside Information
The complaint accuses Google of forcing publishers to use its ad server by tying it to its exchange services — a practice known in antitrust law as unlawful tying.
By controlling ad serving technology, Ziff Davis says, Google suppresses competition among exchanges and pushes down the prices publishers receive for their ad inventory.
In particularly sharp language, the suit alleges that Google “rigs” exchange auctions by exploiting inside information obtained through its ad server platform. That informational edge, Ziff Davis contends, allows Google to tilt auctions in its favor — reducing revenues for publishers while padding its own bottom line.
The lawsuit cites a striking figure: in 2022 alone, Google allegedly generated $30 billion from manipulating ad space auctions across the internet.
“Google’s scheme has been wildly profitable,” the complaint states.
Legal Claims and Broader Antitrust Context
Ziff Davis brings multiple claims under the federal Sherman Act, including monopolization of the general publisher ad server market for open display inventory, monopolization of the ad exchange market, and unlawful tying of its ad server to its exchange.
The suit also alleges deceptive acts and practices under New York’s general business law, as well as common-law fraud and unjust enrichment.
Ziff Davis seeks injunctive relief aimed at restoring competition, along with compensatory and punitive damages, interest, and litigation costs.
The case arrives amid mounting legal scrutiny of Google’s advertising empire. Last year, a federal judge in Virginia ruled that Google illegally monopolized markets for display advertising placement technology.
Separately, a bipartisan coalition of state attorneys general has filed litigation in Texas federal court accusing Google of monopolization and misrepresentation similar to the claims raised in Virginia. In July, the Texas judge paused a jury trial in that case pending final judgment in the Virginia matter.
The legal storm intensified last month when The Atlantic filed its own antitrust lawsuit in New York federal court, echoing allegations that Google cornered the publisher ad server and ad exchange markets and siphoned billions in revenue.
Additionally, multidistrict litigation in New York consolidates four lawsuits from ad tech rivals — OpenX Technologies Inc., Magnite Inc., PubMatic Inc. and Equativ SAS — originally filed in Virginia. Two more cases filed in New York by Index Exchange Inc. and Kargo Global LLC have also been paired with the consolidated proceedings.
