The news: AppLovin and Unity, two of the largest mobile game advertising companies, are locked in a legal dispute over improper data collection.
AppLovin requested a restraining order against Unity for allegedly collecting return on investment, engagement, and user information from ads it serves. AppLovin alleges Unity used this information to inform its own pricing models.
Unity denied the claims. “AppLovin’s legal filings against us are a classic case of a dominant incumbent resorting to litigation and intimidation to address increased competition and slowing growth,” a Unity spokesperson told EMARKETER.
A San Francisco Superior Court denied AppLovin’s request for a restraining order on Thursday.
Zooming out: Limited spending and high engagement are driving fierce competition in the mobile game ad market.
We forecast that US mobile game ad spending will total $8.2 billion this year. Though a small piece of the enormous digital advertising market, ad tech companies and gaming platforms are clamoring to claim share of an ad format with remarkably high engagement and consumer tolerance.
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