Texas Filed An Antitrust Suit Against Google. It’s Moving Forward.

The suit that Texas Attorney General Ken Paxton, among others, filed has to do with the digital advertising market, which Google controls almost completely in a way that Carnegie, Rockefeller, Baruch and Vanderbilt would have considered over the top. So much so that any web publisher without a Google AdSense account is basically wasting its time attempting to monetize through advertising.

The suit notes that it’s even worse than that, because in 2018 Google teamed up with Facebook to give the latter a leg up in the little mini-auctions for ad space that determine what ads end up where. That created a cartel in digital advertising which made a mockery of the entire business.

Is the suit going to be successful? It’s impossible to say at this point. But the interesting news today is that it’s going to go forward, something Google attempted to stop from happening.

Paxton was ebullient after the decision came down. Here was his press release

Texas Attorney General Ken Paxton applauds a New York federal district court’s decision last night to reject Google’s motion to dismiss Texas’s lawsuit alleging that Google monopolized the digital advertising market. The federal court has allowed a coalition of seventeen states led by Texas to proceed on all counts under Section 2 of the Sherman Act, a major body of federal antitrust laws. The court ruled that “the States have plausibly alleged that Google has monopoly power in and willfully engaged in anticompetitive conduct.”

Attorney General Paxton stated: “Google’s monopolization of the display-advertising industry and its misleading business practices stifle innovation, limit consumer choice, and reduce competition. Here, the court is absolutely right to reject Google’s attempt to throw out our case. We look forward to a jury hearing how this Big Tech giant abused its monopoly power by harming consumers to reap billions in monopoly profits. This is a major step in the right direction to make our free market truly free.”

It should be noted that this isn’t just a Texas suit. There are some 10 states involved in it. Another suit on a similar topic has 40 states involved.

This might come to nothing, but at least we’re going to find out – because the suit is moving forward.

Check out the court’s opinion and order here.

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