Google has filed a motion to dismiss most of an ad tech-focused antitrust lawsuit brought forward by a group of state attorneys general. It has requested that a federal court dismiss four of the six charges with prejudice, which would prevent them from being brought back to the same court.
“The complaint misrepresents our business, products and motives, and we are moving to dismiss it based on its failure to offer plausible antitrust claims,” Adam Cohen, Google’s director of economic policy, wrote in a blog post. The company says the plaintiffs failed to provide evidence of wrongdoing for several of their allegations and that much of the suit “is based on outdated information that bears no correlation to our current products or business in this dynamic industry (and in any event never amounted to a violation of antitrust laws).”
The AGs, who are led by Texas AG Ken Paxton, claimed Google abused its power to shore up its position in the online ads market. They said the company agreed a “sweetheart deal” in 2018 that gave Facebook parent Meta a boost in ad header bidding (a type of tech allows publishers to solicit bids from multiple ad exchanges simultaneously) in exchange for support for Google’s Open Bidding method of selling ads.
Google said the deal was above board and that it wasn’t a secret, as Facebook Audience Network (FAN) was one of several partners for its Open Bidding program. Cohen said the deal “does not provide FAN with an advantage in the Open Bidding auction. FAN competes in the auction just like other bidders: FAN must make the highest bid to win a given impression, period. If another eligible network or exchange bids higher, they win the auction.”
The AGs also alleged that Google harnessed at least three programs to manipulate ad auctions. The aim, according to the states, was to push publishers and advertisers into using the company’s own tools.
“State Plaintiffs respond to Google’s success by seeking to compel Google to share with its competitors the fruits of its investments and innovation,” Google wrote in its filing. “They criticize Google for not designing its products to better suit its rivals’ needs and for making improvements to those products that leave its competitors too far behind. They see the ‘solution’ to Google’s success as holding Google back, rather than letting market forces urge its competitors forward.”
As Reuters notes, the two other charges in the suit are based on state law and were stayed in September. Although Google hasn’t asked for those to be dismissed, it reserved the right to make that request at a later date.
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