The ad agency who owns a popular ad network for the mobile games market has been taken to court by Reddit advertising firm Reddit Advertising for violating its terms of service.
The suit filed on Wednesday alleges that the Reddit advertising service has violated antitrust laws by allowing advertisers to post ads on the platform without permission.
It claims that Reddit’s ad network, which has more than 3,500 advertisers, is a “key conduit” for ad-sharing on the site.
The company says it has received more than $1.2 billion in advertising revenue from ads posted on Reddit in 2017.
The lawsuit accuses Reddit of violating its own advertising rules, the FTC and state law by allowing advertising networks that provide content on Reddit to post adverts without its permission.
It alleges that its terms and conditions “allow an ad network to post any ad or content it chooses without notice, consent or verification”.
The company also claims that it has violated the FTC’s Fairness Doctrine, which prohibits companies from engaging in unfair or deceptive practices that harm consumers.
It also says Reddit violated a key FTC regulation by allowing “non-disparagement advertising” by using its platform to sell a product or service without paying for it.
A Reddit spokesperson told Business Insider that the company was “disappointed” with the suit and said that it would continue to work with its advertising partners to “strengthen their ad platforms”.
It added that it did not comment on pending litigation.
Reddit has faced criticism for its role in the ad industry and for not taking any action against ad networks.
Its advertising platform allows users to post and share content on the social network and lets advertisers bid on posts, as well as to advertise on their own.
The site has been under fire in recent months after an advertiser’s ad was banned on Reddit after it posted an ad that accused President Donald Trump of raping a reporter.
Reddit’s CEO, Steve Huffman, had promised to fix the site’s problems in May, but the controversy over ad blocking and the Trump controversy led to the site temporarily closing the platform.