NEW YORK - Google recently filed a motion to dismiss four counts of allegations made in an antitrust lawsuit brought by “Texas Attorney General (Ken Paxton) and his allies.”
Since its filing last year, more than a dozen states have joined the Texas-led lawsuit, which alleges antitrust violations and deceptive acts by Google in its lucrative online display advertising business.
According to the complaint, Google’s monopolization includes an anticompetitive agreement with Facebook, making misrepresentations to users and customers, and suppressing competition.
Court records show Google filed its motion to dismiss on Friday, asserting that the state plaintiffs are responding to the company’s success by seeking to compel it to share with its competitors “the fruits of its investments and innovation.”
“They criticize Google for not designing its products to better suit its rivals’ needs and for making improvements to those products that leave its competitors too far behind,” the motion states. “They see the ‘solution’ to Google’s success as holding Google back, rather than letting market forces urge its competitors forward.”
Google argues the states’ monopolization and attempted monopolization claims (Counts one and two) fail because they have not alleged facts plausibly showing that it has engaged in anticompetitive conduct.
“Despite amassing a lengthy collection of grievances, each one comes down to a plea for Google to share its data or to design its products in ways that would help its rivals,” the motion states. “The Sherman Act requires no such thing.”
Google further asserts that the state plaintiffs’ third amended complaint fails to allege facts showing that Google coerced the publishers that use Google’s ad exchange to purchase its ad server.
In the fourth count, the state plaintiffs argue that it was unlawful for Google and Facebook to enter into a Network Bidding Agreement that enabled Facebook to bid against Google and other buyers in Google’s auctions.
And while the states suggest that Facebook agreed not to support header bidding when it signed the NBA, they cannot cite any provision in the NBA to that effect, Google argues.
“U.S. antitrust laws encourage, reward, and protect that success—success earned through relentless innovation, early and extensive investment in research and development, vigorous competition, and hard work—even if the Texas Attorney General and his allies do not,” the motion states. “State Plaintiffs respond to Google’s success by seeking to compel Google to share with its competitors the fruits of its investments and innovation. They criticize Google for not designing its products to better suit its rivals’ needs and for making improvements to those products that leave its competitors too far behind.
“They see the ‘solution’ to Google’s success as holding Google back, rather than letting market forces urge its competitors forward.”
Google maintains that its ad tech products benefit publishers and advertisers, while helping keep the internet free and open for everyone.
“State Plaintiffs’ complaint—cheered on by a handful of Google’s rivals who have failed to invest properly, compete successfully, or innovate consistently—might serve the narrow interests of those rivals, but it also threatens to stifle the dynamism that drives Google and other firms to deliver the products on which businesses and consumers depend every day,” the motion states.
“Accordingly, and for all of the reasons set forth herein, Google respectfully requests that the Court dismiss Counts I through IV of the TAC in their entirety and with prejudice.”
Google is represented in part by the law firm of Freshfields Bruckhaus Deringer.
The case is currently in the U.S. District Court for the Southern District of New York, case No. 1:21-md-03010-PKC.