Justice Department, State Attorneys General Likely to Bring Antitrust Lawsuits Against Google
16 May 2020 - 6:43AM
Dow Jones News
By Brent Kendall and John D. McKinnon
WASHINGTON -- Both the Justice Department and a group of state
attorneys general are likely to file antitrust lawsuits against
Alphabet Inc.'s Google -- and are well into planning for
litigation, according to people familiar with the matter.
The Justice Department is moving toward bringing a case as soon
as this summer, some of the people said. At least some state
attorneys general -- led by Texas Attorney General Ken Paxton, a
Republican -- are likely to file a case, probably in the fall,
people familiar with the matter said.
Much of the states' investigation has focused on Google's online
advertising business. The company owns the dominant tool at every
link in the complex chain between online publishers and
advertisers. The Justice Department likewise is making Google's ad
technology one of its points of emphasis. But it is also focusing
more broadly on concerns that Google uses its dominant search
business to stifle competition, people familiar with the matter
said.
Details about the Justice Department's legal theories for a case
against Google couldn't be learned.
Though the coronavirus pandemic has complicated work for the
Justice Department, Attorney General William Barr has devoted
considerable resources to the Google probe and continues to treat
it as a top priority. Mr. Barr told The Wall Street Journal in
March that he wanted the Justice Department to make a final call
this summer. "I'm hoping that we bring it to fruition early
summer," Mr. Barr said at the time. "And by fruition I mean,
decision time."
Mr. Paxton of Texas said the pandemic was not slowing the
states' efforts. "We've issued [civil subpoenas] to Google and
impacted third parties. We hope to have the investigation wrapped
up by fall," Mr. Paxton said in a statement. "If we determine that
filing is merited we will go to court soon after that."
"We continue to engage with the ongoing investigations led by
the Department of Justice and Attorney General Paxton, and we don't
have any updates or comments on speculation. Our focus is firmly on
providing services that help consumers, support thousands of
businesses and enable increased choice and competition," a Google
spokeswoman said.
The department continues to gather information in its probe and
all signs point toward it bringing a case, the people said, but
both the federal and state investigations are ongoing and no final
decisions have been made. Investigations at times can be settled
without litigation, though it's unclear whether an agreement could
be reached in the Google probes.
One unanswered question is whether the states will file their
own complaint, or simply join in the federal case when it is filed.
It's even possible different groups of states will file separate
complaints. Texas has been focused closely on ad tech issues, while
some other states have been more interested in Google's search
function, for example, according to people familiar with the
matter.
State officials generally recognize the benefits of cooperating
with the Justice Department, which has relatively strong resources,
some of the people said.
Wall Street Journal publisher News Corp is a longtime Google
critic and is among a group of the publishers that have been
contacted by antitrust investigators.
The lawsuits -- if they are filed -- could pose a direct threat
to Google's businesses and rank among the most significant
antitrust cases in U.S. history, alongside the government's
antitrust case against Microsoft Corp. in the late 1990s. The
search giant's critics have called for a range of sanctions against
Google, from changes to its business practices to a breakup of the
company.
As Google has grown into a powerful tech giant, it has long been
on the federal government's radar, though it has largely avoided
enforcement actions. The FTC, which shares antitrust authority with
the Justice Department, previously conducted a broad investigation
of Google but closed it in 2013, announcing that the evidence, on
balance, didn't warrant it. The company made some voluntary changes
to certain business practices.
(END) Dow Jones Newswires
May 15, 2020 16:28 ET (20:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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