WP Engine, a hosting provider for websites running open source WordPress software, has revised its lawsuit against rival Automattic and its CEO Matthew Mullenweg to include antitrust allegations. The company claims that Automattic’s conduct amounts to attempted extortion, libel, and interference with contractual relations.
WP Engine alleges that Automattic is trying to force the company to pay a fee to license the “WordPress” trademark, which violates antitrust laws. The company argues that efforts by Mullenweg and his org to charge 8 percent of WP Engine’s revenues for a purported trademark license to refer to ‘WordPress’ are unlawful.
The lawsuit was initially filed in October 2024 after WP Engine refused to pay a licensing fee sought by Automattic. Since then, Automattic has tried to convince WP Engine to pay a “royalty fee,” which is either 8 percent of WP Engine’s gross revenue or an equivalent amount in salaries of employees working on WordPress core features.
Mullenweg’s rationale for making the demand is that he believes WP Engine does not contribute enough value back to the open source WordPress project. However, WP Engine declined to pay, leading Mullenweg to start a campaign of public criticism and actions designed to pressure the rival hosting firm.
The amended complaint argues that Automattic and Mullenweg dominate the markets for Web Content Management Systems, WordPress Web Hosting Services, WordPress Custom Field Plugins, and WordPress Plugin Distribution. The filing also contains arguments that Automattic and Mullenweg use their trademarks to block competition and maintain a monopoly over the market.
About 43 percent of websites are based on WordPress, according to WordPress.org. The amended complaint goes on to argue that the WordPress community has been duped into believing WordPress software is free and open when in fact Mullenweg and his commercial business have the power to deny access to WordPress.org.
A spokesperson for Automattic responded to the filing, stating that WP Engine’s claims are “baseless” and that the company will vigorously litigate against this complaint.
Source: https://www.theregister.com/2024/11/15/wp_engine_antitrust_automattic_lawsuit