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Google, Unlockd Media Anticompetitive Acts Lawsuit Overview:
- Who: Google LLC, Google Ireland Ltd, Google Commerce Ltd, Google Asia Pacific Pte Ltd, and Alphabet Inc
- What: Google is accused of violating federal antitrust laws and forcing digital advertising competitor Unlockd into bankruptcy.
- Where: California federal court
Google abused its control of the Android smartphones ecosystem to drive a competing company in the digital advertising market into bankruptcy, a new lawsuit alleges.
Plaintiff Unlockd Media, Inc. Liquidation Trust filed the complaint against Google last Friday in a California federal court, alleging Google’s “anticompetitive conduct” violates federal antitrust law.
Unlockd was a tech startup that says it identified an untapped “attention opportunity” immediately following the unlocking of a smartphone, and created a proprietary technology to monetize that opportunity in a way that rewards users for their attention.
The company said its unique features gave it a major advantage over existing forms of advertising, such as Google’s search advertising.
When it was a smaller business, it relied on two Google platforms—the Google Play Store and Google AdMob. The Google Play Store accounted for over 90 percent of its app downloads and AdMob sales accounted for approximately 80 percent of Unlockd’s revenue.
Class Action Lawsuit Against Google Claims Company Violated Antitrust Laws
The lawsuit says for most of its existence, Unlockd was small enough that Google did not perceive it as a threat. It says that changed in the fall of 2017, when rumors started circulating that Unlockd was planning an initial public offering on the Australian Stock Exchange.
“Soon after the press started reporting on Unlockd’s upcoming IPO, Google informed Unlockd that Google would be terminating Unlockd’s apps from the Google Play Store and AdMob due to alleged violations of Google Play and AdMob policy, even though Google had previously confirmed Unlockd’s compliance with Google policy,” the lawsuit says.
Without access to these two critical platforms, Unlockd was doomed, it alleges.
“Thus, rather than complete a successful IPO, Unlockd’s capital dried up, its partners severed their ties with the company, and the young company was ultimately forced into insolvency proceedings around the world, including in the United States.”
The company says it suspected anticompetitive motives on the part of Google, but its motives were allegedly revealed when it made a substantial strategic investment in another technology startup, “Glance,” that operates in the same manner and in the same ad tech space that Unlockd did.
The company is suing for violations of the Sherman Act, specifically for attempted monopolization in the digital advertising market. Unlockd is seeking damages, interest, costs and a jury trial.
Meanwhile, last year, the United States and 11 states filed a Google monopoly lawsuit accusing the tech company of unlawfully blocking search engine results from rival companies.
According to the U.S. lawsuit, Google violated the federal Sherman Act by maintaining its monopolies through “anticompetitive and exclusionary practices.”
What do you think of Google’s alleged conduct in this case? Let us know in the comments!
The plaintiff is represented by Cravath, Swaine & Moore LLP.
The Google Unlockd Lawsuit is Unlockd Media, Inc., v. Google. Inc, Case No. 3:21-cv-07250, in the U.S. District Court Northern District of California.
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