Tech Giant Faces Continued Legal Challenges from U.S. States
Pavitra Shetty
Published on January 30, 2025, 17:57:23
Alphabet Inc.'s Google must confront an antitrust lawsuit filed by a coalition of U.S. states led by Texas, following a federal judge's decision to deny the company's motion to dismiss the case. The lawsuit alleges that Google unlawfully dominates digital advertising markets, violating antitrust laws and engaging in unfair trade practices.
U.S. District Judge Sean Jordan ruled against Google's bid to dismiss the lawsuit, rejecting the company's argument that the plaintiffs lacked standing to sue. The lawsuit, initiated in 2020, accuses Google of maintaining control over digital advertising markets, leading to inflated prices and stifled competition.
This decision adds to Google's mounting legal challenges, including a separate antitrust case filed by the U.S. Department of Justice in January 2023, which accuses the company of monopolizing the digital advertising industry. The trial for this case began on September 9, 2024.
The coalition behind the current lawsuit comprises 15 states and Puerto Rico, all alleging that Google's practices have harmed competition and consumers in the digital advertising space. A trial is scheduled for March, though it may be delayed due to related litigation in Virginia.
Google has consistently denied any wrongdoing, asserting that the digital advertising market remains competitive and that its practices benefit consumers. The company is expected to continue its defense as these legal proceedings unfold.
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