Judge Orders Google to Face Consumer Antitrust Lawsuit Over Search

Pymnts
A federal judge allowed a consumer antitrust lawsuit against Google to proceed, focusing on its default-search agreements.

Summary

A federal judge in California has permitted a consumer antitrust lawsuit against Google to move forward, maintaining legal scrutiny on the company’s default-search payments. Judge Rita F. Lin rejected Google’s attempt to dismiss the core federal claims, finding that consumers plausibly allege Google unlawfully limited competition in the U.S. search market through exclusive agreements with mobile device manufacturers, sellers, and browser developers. The lawsuit centers on contracts that establish Google as the default search engine on devices like Apple’s and major Android phones, as well as browsers like Safari and Firefox, arguing that users often remain with these preselected settings, allowing Google to dominate search queries and data collection.

The plaintiffs assert monopolization under the Sherman Act and violations of California’s Unfair Competition Law, claiming Google unjustly profited from user search data. The court dismissed Google’s argument that calculating damages would be too complex and also rejected the claim that rival search engines couldn’t offer competitive advantages. The judge noted the existence of search products offering rewards, privacy features, or ad-free subscriptions, suggesting Google’s agreements hindered their ability to scale and compete effectively.

This decision follows the Justice Department’s 2024 search case, which found Google illegally maintained monopoly power in search advertising. The DOJ has proposed remedies that could limit default-search payments, require data-sharing, and address AI-driven search, while Google has appealed these measures and requested a pause on data-sharing obligations.

(Source:Pymnts)

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