Google suffers setback in US antitrust case as judge rejects motion to dismiss

Last Update: April 28, 2023, 23:53 IST

The lawsuit alleges that Google maintains a virtual monopoly in online advertising that works to the detriment of consumers.

The lawsuit alleges that Google maintains a virtual monopoly in online advertising that works to the detriment of consumers.

US District Judge Leonie Brinkema ruled out the lawsuit, which alleges that Google exercises monopoly power in the world of online advertising and may proceed in its entirety.

A federal judge on Friday denied a motion by Google to dismiss the government’s antitrust case against the company.

US District Judge Leonie Brinkema ruled out the lawsuit, which alleges that Google exercises monopoly power in the world of online advertising and may proceed in its entirety.

His decision in federal court in Alexandria is a second blow to Google. Google previously attempted to consolidate the case with a similar lawsuit that has been ongoing in New York for several years. But Brinkema ruled last month that the case could proceed to the Alexandria Courthouse, known as the “rocket docket” for its reputation for swiftly disposing of disputes.

The lawsuit alleges that Google maintains a virtual monopoly in online advertising that works to the detriment of consumers. The complaint alleges that Google “threatened legitimate competition in the ad tech industry by engaging in a systematic campaign to control a broad swath of high-tech tools used by publishers, advertisers and brokers to facilitate digital advertising.” corrupted.”

Google argued that the case should be dropped, partly because the government defined Google’s alleged monopoly too narrowly. Google’s lawyers argue that the lawsuit doesn’t account for advertisers’ ability, for example, to serve ads on giant social media platforms like Facebook and TikTok that run their own advertising platforms independent of Google.

In court papers, Google drew an analogy to an unsuccessful antitrust lawsuit against Live Nation, a concert promoter that owns and operates a large number of outdoor amphitheatres.

The lawsuit alleged that Live Nation held a monopoly on amphitheaters, but a judge ruled that the plaintiffs failed to prove a monopoly partly because they did not take into account reasonable alternatives to amphitheater venues such as indoor concert halls and arenas. .

Brinkma said how to define the market that Google allegedly monopolizes will be a key issue in the case, but said that at this early stage, the government’s allegations are sufficient for the case to proceed. are commendable. However, the government’s burden of proof will increase during the trial.

Following the hearing, Google issued a statement from Dan Taylor, its vice president of global ads, saying the lawsuit “ignores the reality of today’s dynamic digital advertising space, where we compete with Amazon, Apple, Meta, Microsoft and Compete against hundreds of companies like TikTok.”

The statement said the lawsuit “will slow innovation, drive up advertising fees, and make growth harder for thousands of small businesses and publishers.”

Several states, including Virginia, California, Colorado, Connecticut, New Jersey, New York, Rhode Island and Tennessee, have joined the case as plaintiffs against Google.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)