Federal Judge Narrows Google Antitrust Case Brought by U.S. States

A U.S. District Judge has significantly narrowed the scope of an antitrust case brought against Google by 28 U.S. states.

“A dominant firm like Google does not violate the law merely because it occupies a monopoly market position,” U.S. District Judge Amit Mehta writes in his ruling. “It must act in a manner that produces anticompetitive effects in the defined markets. That is, a company with monopoly power acts unlawfully only when its conduct stifles competition.”

Google was originally sued by the U.S. Department of Justice and 11 states in October 2020 for abusing its monopoly power in online search to harm users, advertisers, and small businesses in the form of fewer choices, reduced quality, higher advertising prices, and less innovation. Since then, the case has been consolidated with additional states and their own additional charges. And until today, it encompassed Google’s agreements with smartphone, tablet, and browser makers to make its search engine the default, its alleged abuse of vertical search providers like Amazon and eBay for shopping and travel services like Expedia and Yelp, and its domination of search-based advertising services.

But now, Judge Mehta has significantly reduced the charges that Google must face in court. That is, it will only have to defend its agreements with device and browser makers, with the judge throwing out the other allegations because the states’ attorneys general could not prove harm.

“Plaintiffs have not demonstrated the requisite anticompetitive effect in the relevant markets to make out a … case,” the ruling explains. “However, there remains a genuine dispute of material fact with regard to the anticompetitive effect of Google’s disparate development of … ad-buying features. Summary judgment is therefore denied as to that part of the Attorneys General’s claims.”

The remainder of the case heads to trial on September 12.

“We will continue to evaluate how to best press forward and establish Google’s pattern of illegal conduct that harms consumers and competition,” Colorado Attorney General Phil Weiser said, noting that he was pleased the core of the case was still heading to trial.

“We appreciate the Court’s careful consideration and decision to dismiss claims regarding the design of Google Search,” Google president Kent Walker said. “Our engineers build Search to provide the best results and help you quickly find what you’re looking for. People have more ways than ever to access information, and they choose to use Google because it’s helpful. We look forward to showing at trial that promoting and distributing our services is both legal and pro-competitive.”