State of Texas v. Google, LLC

Summary

Texas, along with nine other states, filed a lawsuit against Google over allegations that the company, in collaboration with Facebook, abused its monopoly over the digital ad markets to overcharge publishers for ads and win ad auctions even over higher bidders. The suit claims that Google established its market dominance through antitrust and consumer protection violations rather than innovation, and as a result of its deceptive bidding practices and misrepresentations, it redirected ad dollars away from publishers and onto American consumers. The coalition of states is suing for damages and seeking “structural relief.”

Updates

March 16, 2021. In an amended complaint, the states’ allege new information about “Jedi Blue” – an an arrangement between Google and Facebook, which advantaged Facebook in ad auctions and limited advertising market competition.

May 20, 2021. The Court rejects Google’s request to transfer the state’s antitrust lawsuit to California.

August 12, 2021. A federal judicial panel consolidated the case, and other cases across the U.S. brought against Google for monopolizing the digital advertising market, sending them to the Southern District of New York (Manhattan).

October 22, 2021. In an amended complaint, the States allege that Google coordinated with competitors to protect its market share.

January 14, 2022. In an amended complaint, the States allege that the two companies CEOs, Sundar Pichai (Google) and Mark Zuckerberg (Facebook), signed off on the illegal ad purchase agreement between the two companies.

September 13, 2022. The Court grants Google’s motion to dismiss States’ claims related to “Jedi Blue” agreement. However, it denies the company’s request to dismiss the other claims in the suit, allowing the case to move forward.

June 5, 2023: A federal judicial panel sends the antitrust suit back to Texas.

October 4, 2023. The U.S. Court of Appeals for the Second Circuit denies a petition by Google to stop moving the case to Texas.