PubMatic Inc., an advertising exchange, has filed a lawsuit against Alphabet Inc.’s Google, aiming for billions in damages over allegations that the search giant has unlawfully monopolized the advertising technology sector.

The lawsuit, submitted on Monday in Virginia's federal court, is the second from an advertising exchange targeting the tech giant since a federal judge decided in April that Google had unlawfully monopolized two crucial technology markets—ad exchanges and the tools utilized by websites to sell advertising space, referred to as ad servers.

The Virginia judge who supported the Justice Department and several states in April has scheduled another trial for this month to determine if Google needs to divest portions of its advertising business to address the unlawful behavior.

The Justice Department stated that the firm should be mandated to promptly divest its advertising exchange, AdX, and also ensure its technology is compatible with competitors.

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Google has stated that a selloff is not needed and will instead ensure its advertising exchange functions smoothly with competing technology, while implementing a monitor to guarantee compliance over the next three years.

Google stated that the lawsuit lacks merit and that advertisers and websites opt for the company's tools due to their effectiveness, affordability, and user-friendliness.

PubMatic CEO Rajeev Goel stated that the previous decision declaring Google has unlawfully upheld monopolies in advertising technology was “significant but not comprehensive.” The lawsuit filed by the company is not solely about financial gain, but also ensuring that online advertising markets function properly, he stated.

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"It seemed for a long time that regardless of our innovations, there was a constraint preventing our progress," Goel states.

“That obstacle didn’t define the boundaries of our technology. It was the unlawful monopoly of Google. Whenever we adjusted or created something new, Google discovered fresh methods to manipulate the situation.

 

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PubMatic assists websites, such as Elon Musk’s X, in selling ad placements. Documents and testimony from last year's antitrust trial indicate that Google contemplated acquiring the company in 2011 but ultimately chose to buy advertising technology firm AdMeld instead.