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In Reddit Case Against SerpApi and Perplexity Stay on Antitrust Discovery as Oxylabs Stays In

SDNY COURTHOUSE, Oct 1 –  In the lawsuit by Reddit against SerpApi, Perplexity and Oxylabs, SDNY Judge Paul E. Engelmayer on October 1 held an hourlong conference largely about discovery and antitrust issues. Inner City Press went to cover it in person, even as one of Reddit's lawyers was apparently invited to call in (he ended up not getting in, his colleague said).

   While discovery will proceed into Reddit's agreement with Google and how Perplexity scrapes - its lawyer argued that's irrelevant - discovery into the antitrust claims is not stayed.

   Oxylabs, which tried arguments ranging from EU GDPR to limitations on the reach of the DMCA, was told by Judge Engelmayer that he is unlikely to grant their motion to dismiss.

   He set two far-out dates: April 5, 2027 at 2:30 pm, and October 27 at 2:30 pm. He noted that this would be harder to settle that backward looking case like car crashes and employment litigation, and offered the services of a Magistrate.

Previously: Reddit, Inc. filed suit in the Southern District of New York on October 22, 2025, accusing SerpApi LLC, along with Oxylabs UAB, AWMProxy, and Perplexity AI, Inc., of industrial-scale scraping of Reddit content via Google's search results and selling it commercially to train AI systems, chiefly Perplexity's. The complaint alleges the defendants circumvented both Reddit's own anti-scraping defenses and Google's "SearchGuard" technological protection measures by disguising automated bot traffic as human users, violating the Digital Millennium Copyright Act's anti-circumvention provisions, and separately alleges trespass, unjust enrichment, and civil conspiracy. It is Reddit's second such suit against the AI data-scraping ecosystem, following its June 2025 case against Anthropic PBC in California, alleging similar unauthorized scraping of Reddit content to train Claude.  On July 31, 2026, Judge Paul A. Engelmayer largely denied the defendants' motions to dismiss, allowing most of Reddit's DMCA and civil conspiracy claims to proceed while trimming one DMCA theory and the state-law unjust enrichment and unfair competition claims. The court found Reddit's allegations — that SerpApi's system deploys "a server-swarm to hide from, avoid, or simply overwhelm by brute force" Reddit's and Google's technological protections, and that Perplexity's role went "more than a bystander" by setting parameters for the scraping activity — sufficient to proceed to discovery.

The case is Reddit, Inc. v. SerpApi LLC, et al., 1:25-cv-8736 (Engelmayer)   


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