Google Antitrust Lawsuit: 35 States Allege Monopoly Power
Yet another significant antitrust action has been initiated with the goal of curbing the substantial influence of the world's largest technology corporations.
Yesterday, a coalition of 38 state attorneys general declared a bipartisan legal challenge against Google, asserting that the company has participated in “unlawful, anticompetitive practices” to establish a monopoly in the search and search advertising sectors.
Colorado Attorney General Phil Weiser explained that “Google’s anticompetitive conduct has safeguarded its dominance in general search and hindered competitors, denying consumers the advantages of competitive alternatives, stifling innovation, and preventing new businesses from entering or expanding the market.” He further stated, “This legal action aims to reinstate competition.”
The state of Colorado is jointly leading the lawsuit alongside Arizona, Iowa, Nebraska, New York, North Carolina, Tennessee, and Utah. New York Attorney General Letitia James characterized Google as the “central access point to the internet” and criticized the company for utilizing the personal data it gathers to strengthen its position in the marketplace.
In contrast to the lawsuit brought forth by Texas, which was announced the previous day, this second legal action is supported by a wider group consisting of 35 states, the District of Columbia, Puerto Rico, and Guam. This new lawsuit, which is included below, will proceed concurrently with the federal case filed by the Department of Justice, which also contends that the company has misused its power to create and sustain a monopolistic position.
The states involved in the new lawsuit accuse Google of implementing restrictive agreements that disadvantage specialized search platforms, such as Expedia and Yelp, while prioritizing its own ventures through its search engine marketing resources. They portray Google’s power as self-perpetuating, attributing the company’s actions to limiting consumer choices and, consequently, gathering more valuable data regarding their online activities.
The group of states is requesting the court to correct the imbalances in advantages held by Google, citing violations of Section 2 of the Sherman Act, the federal antitrust law designed to protect competition, and proposes “structural divestitures” as a potential remedy.
Unlike the lawsuit against Facebook, which involved 46 states, the efforts by U.S. states to challenge Google have been divided into two separate actions. The likely reason for these two distinct antitrust lawsuits addressing similar concerns is that numerous state leaders were hesitant to support an initiative spearheaded by Texas Attorney General Ken Paxton, who previously led a failed attempt to overturn election results in four states and is currently under FBI investigation for alleged bribery.
Google responded to the allegations in the new lawsuit through a blog post, highlighting the company’s beneficial effects on consumers and small businesses. Adam Cohen, Google’s Director of Economic Policy, wrote, “This lawsuit intends to fundamentally alter Search in ways that would deprive Americans of useful information and impede businesses’ ability to connect directly with customers.” He added, “We anticipate presenting our case in court while continuing to focus on providing a superior search experience for our users.”
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