Google Asks Judge to Dismiss Texas Antitrust Lawsuit

Google Seeks Dismissal of Texas Antitrust Lawsuit

A motion was submitted by Google on Friday to a federal court, requesting the dismissal of the majority of charges within an antitrust lawsuit spearheaded by the state of Texas.

The company’s filing asserts that the Texas lawsuit lacks “credibility” and that the state has not demonstrated that Google’s advertising operations violate antitrust laws.

Google's Response to Allegations

Adam Cohen, Google’s Director of Economic Policy, stated in a blog post that the allegations presented by Attorney General Paxton are largely unsubstantiated and do not meet the necessary legal criteria for a trial.

Cohen further explained that the complaint contains misrepresentations regarding Google’s business practices, products, and motivations, leading to the motion for dismissal based on a lack of plausible antitrust claims.

Background of the Lawsuit

The lawsuit, initially announced by Texas Attorney General Ken Paxton in late 2020, alleges that Google has illegally maintained a monopoly in the online advertising sector.

An updated complaint was filed last week, having been initially submitted in November but kept redacted until a judge mandated its public release.

States Joining the Legal Action

Several states have joined Texas in pursuing legal action against the tech giant, seeking accountability for alleged anti-competitive behavior.

Alaska
Arkansas
Florida
Idaho
Indiana
Louisiana
Mississippi
Missouri
Montana
Nevada
North Dakota
South Carolina
South Dakota
Utah
Kentucky
Puerto Rico

Allegations of Anti-Competitive Practices

Google contends that Paxton’s claims disregard or misrepresent numerous established facts.

Specifically, the company refutes allegations of an agreement with Facebook designed to suppress an emerging ad buying method known as “header bidding” and maintain Google’s dominance.

The Facebook Agreement

Reports from The New York Times indicate that Facebook revealed this relationship in 2018, but failed to disclose that Google provided its competitor with preferential treatment.

This included “special information and speed advantages” not extended to other partners, and even a guaranteed “win rate” in ad auctions.