AppLovin takes legal action against Unity over Ad Quality SDK

• AppLovin alleges Unity’s Ad Quality SDK collected data relating to its ads, including information on creatives, users, devices, revenue and engagement.
• Unity has disputed AppLovin’s claims and argued that its own Ad Quality product is not responsible for its improved advertising performance.

AppLovin has taken legal action against Unity over data collected through the latter’s Ad Quality SDK. 

As first reported by Digiday, AppLovin has applied for a temporary restraining order in California seeking to prevent Unity from collecting and using certain data relating to its advertising business. 

The company alleges that Unity’s SDK has collected data related to ads won and served by AppLovin, including data on creatives, users, devices, revenue, and engagement. AppLovin also claims that Unity has used the information to help train models that compete with its advertising business. 

AppLovin is asking the court to stop Unity from collecting or using what it defines as “Protected Data” and to turn off the relevant data collection within five business days. It is also seeking changes to the Ad Quality SDK within 30 days.

Heated rivalry

Unity has pushed back against the action, describing Ad Quality as “a small, free product” that helps prevent inappropriate and harmful ads from appearing in games.

“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,” said a Unity spokesperson. 

Unity has also argued that AppLovin’s own Ad Review product, formerly known as SafeDK, is “far more intrusive” than Ad Quality.

AppLovin, however, rejected the comparison, arguing that Ad Review is used for ad moderation and operates only on impressions mediated through its MAX platform, rather than to build user profiles or models. 

Unity has also rejected the suggestion that Ad Quality is responsible for its improved advertising performance. 

“In reality, Ad Quality isn’t the driver of our improved performance, so they’ll be frustrated in that attempt regardless of how this suit is adjudicated,” the spokesperson added. 

AppLovin has started arbitration proceedings against Unity over the wider dispute, including claims of breach of contract, trade-secret misappropriation and unfair competition. 

Unity said it intends to oppose AppLovin’s application.