Teads sues Google over alleged ongoing anti-competitive adtech practices

Teads has initiated legal action against Google, alleging that the tech giant continues to engage in anti-competitive practices within the digital advertising ecosystem despite regulatory scrutiny, according to media reports.

The adtech company, which provides monetisation solutions for web and mobile publishers, filed an 85-page complaint in the US District Court for the Southern District of New York. It argues that Google's integration of its Google Ads platform with its AdX exchange unfairly disadvantaged competing ad exchanges, resulting in an estimated loss of 6.88 trillion ad impressions for rivals between 2017 and 2023. The lawsuit does not explain how this figure was calculated.

Teads CEO David Kostman was quoted in media reports saying that the company believes Google's conduct distorted competition and limited innovation in the adtech market. He added that the lawsuit seeks to recover losses while pushing for a more transparent and competitive environment where independent publishers and adtech providers can compete on equal terms.

While Teads has not disclosed a specific damages claim, the filing seeks treble damages, punitive damages and restitution, with the final amount to be determined during trial proceedings.

Responding to the allegations, a Google spokesperson said that the claims lack merit, maintaining that advertisers and publishers continue to choose Google's advertising tools because they are effective, cost-efficient and easy to use.

Teads is the latest supply-side platform (SSP) to challenge Google in court, joining companies including Index Exchange, Magnite, OpenX and PubMatic, all of which have filed similar lawsuits over the past year.

The wave of litigation follows a landmark federal court ruling in April 2025, which found that Google had unlawfully maintained dominance in parts of the open web advertising market through anti-competitive conduct. Among the practices scrutinised were Google's requirement that publishers use its ad server to access demand from AdX, along with auction mechanisms known as "First Look" and "Last Look," which allegedly disadvantaged competing exchanges.

Although Google has previously said these practices were discontinued, Teads argues that comparable mechanisms remain in place. According to the lawsuit, Google's claim that it ended Last Look in 2019 is inaccurate, alleging that the company introduced new auction rules that effectively replicate the same competitive advantage.

The complaint also revives allegations surrounding Google's former Project Bernanke initiative. While Google has said its transition to first-price auctions in 2019 made the advertising marketplace more transparent, Teads contends that the underlying bid-manipulation system continued to operate after the shift and has since been updated rather than eliminated.

Beyond monetary compensation, Teads is asking the court to order changes that would prevent what it describes as deceptive market practices and promote fairer competition across the digital advertising industry.

The lawsuit comes just ahead of Teads' second-quarter earnings announcement scheduled for August 6. According to media reports, the company disclosed in a recent SEC filing that the litigation could prove lengthy and expensive, potentially diverting management's attention and creating additional risks for investors. Teads' shares have declined nearly 68% over the past year.

Despite the legal dispute, the two companies continue to maintain commercial ties. Earlier this year, Teads announced a partnership with Google TV to expand its connected TV advertising inventory across the US and UK markets.