The antitrust litigation against Alphabet Inc.’s Google, filed by state attorneys general, has taken a significant turn as a judicial panel transferred the case back to a federal court in Texas. The move to Texas has the potential to expedite the litigation process, which had been progressing slowly in other jurisdictions.
In 2020, a group of state attorneys general, led by Texas, filed an antitrust lawsuit against Google, accusing the company of illegally monopolizing the advertising technology market. Initially filed in Texas federal court, Google successfully requested the case to be transferred to New York, where related class actions were pending. However, dissatisfaction with the slow pace of proceedings in New York prompted the state attorneys general to petition for the case’s return to Texas.
Transfer to Texas Federal Court
The Judicial Panel on Multidistrict Litigation, in response to the state attorneys general’s request, ruled in favor of transferring the antitrust litigation back to Texas. This decision was facilitated by a law passed by Congress in December, which granted state attorneys general the authority to choose the venue for their federal antitrust suits. While the retroactivity provision was removed from the legislation, the judicial panel determined that the law still applied to pending state antitrust enforcement actions. Google had contested the transfer, citing duplicative proceedings and the removal of the retroactivity provision, but their objections were overruled.
Potential Implications
The transfer of the case to Texas holds potential benefits for the state attorneys general. The eastern district of Texas, known for its efficient handling of cases, boasts a reputation as a “rocket docket” with expedited hearings and timely decisions. This shift could significantly accelerate the litigation process, providing a favorable environment for the state attorneys general seeking resolution. On the other hand, Google may face added challenges as the Texas lawsuit alleges the company violated the law by exerting dominance over the online advertising process, resulting in reduced revenues for website publishers.
Broader Legal Battle and Global Antitrust Scrutiny
The antitrust lawsuit in Texas is just one facet of Google’s ongoing legal battles. The company faces multiple antitrust lawsuits globally, with allegations centered around abuse of dominance in various aspects of its business. Within the United States, Google is also contending with two federal government antitrust lawsuits—one focused on dominance in search and the other on dominance in advertising technology. Additionally, states led by Utah filed a lawsuit in 2021, claiming Google violated antitrust laws in its handling of the Play Store.
The transfer of the antitrust lawsuit against Google’s advertising technology business back to a federal court in Texas marks a significant development in the legal battle between state attorneys general and the tech giant. The enforcement of the Venue Act, coupled with the reputation of the eastern district of Texas for expediting cases, may lead to a swifter resolution. As Google continues to face mounting legal challenges, both domestically and internationally, the outcome of these lawsuits will have far-reaching implications for the company and the broader landscape of antitrust enforcement in the tech industry.
