A federal judge on Friday rejected a motion by Google to dismiss the government’s antitrust lawsuit against it.
Judge Leonie Brinkema ruled that the lawsuit accusing Google of exercising monopoly power in the world of online advertising can proceed in its entirety.
The ruling is the second against Google in federal court in Alexandria. Google had tried to consolidate the case with another similar one initiated in New York several years ago. But Brinkema ruled last month that the case can proceed in the Alexandria court, known for its speed in resolving disputes.
The lawsuit alleges that Google exercises a virtual monopoly on online advertising that acts to the detriment of consumers. It alleges that Google “corrupted legitimate competition in the technology advertising industry through a systematic campaign to seize control of the wide range of high-tech tools used by publishers, advertisers and agents to facilitate digital advertising.”
Google argued that the case should be thrown out in part because the government defines the company’s alleged monopoly too narrowly. His lawyers say the lawsuit fails to take into account the possibility of advertisers posting on huge social networks like Facebook and TikTok, whose ad platforms are separate from Google.
In its documents, Google drew an analogy with a failed antitrust lawsuit against Live Nation, a concert promoter that owns and operates a large number of outdoor venues.
That lawsuit alleged that Live Nation had a monopoly on amphitheatres, but a judge ruled that the plaintiffs had failed to prove a monopoly because they had failed to consider reasonable alternatives to amphitheatres, such as concert halls and indoor arenas.
Brinkema said the question of how to define the market in which Google allegedly holds a monopoly will be crucial in the case. But at this preliminary stage, he noted, the government’s arguments are plausible enough for the case to proceed. However, the burden of proof for the government will be higher during the trial.
Google’s vice president of global advertising, Dan Taylor, said in a statement after the hearing that the lawsuit “fails to take into account the dynamic reality of today’s digital advertising space, where we compete against hundreds of companies including Amazon, Apple, Meta, Microsoft and TikTok.
The lawsuit “will stifle innovation, drive up advertising rates and make it difficult for thousands of small businesses and publishers to grow,” the statement said.
Virginia, California, Colorado, Connecticut, New Jersey, New York, Rhode Island and Tennessee have joined as plaintiffs against Google.
