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Federal Judge Allows Antitrust Claims Against GoDaddy to Proceed

By  |  October 13, 2024

Website hosting giant GoDaddy.com is set to face antitrust allegations after a federal judge ruled that claims brought against the company by software provider Entri LLC can proceed. Entri accuses GoDaddy of unlawfully discouraging customers from using its competing software tools through an anti-competitive agreement.

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    In a decision handed down Thursday, US District Judge Anthony J. Trenga, based in the Eastern District of Virginia, denied GoDaddy’s motion to dismiss the case. According to Bloomberg News, Judge Trenga stated that Entri had plausibly alleged that GoDaddy engaged in an “unreasonable restraint of trade.” The ruling suggests that Entri’s claims under Section 1 of the Sherman Antitrust Act, which prohibits agreements that restrict competition, hold enough merit to move forward.

    Entri alleges that GoDaddy created a “negative tying” agreement, effectively conditioning its domain registration services on customers agreeing not to use Entri’s competing software tools, such as Entri Connect. This alleged practice, per Bloomberg News, would have allowed GoDaddy to unfairly limit competition and restrict consumer choice.

    The case could have broader implications for the tech and web hosting industries, particularly as businesses increasingly rely on a wide range of software tools for managing their online presence. By allegedly blocking customers from accessing rival products, GoDaddy’s actions may have violated federal antitrust laws, according to the lawsuit.

    GoDaddy, one of the largest domain registration and web hosting companies, has yet to issue a formal statement on the court’s ruling. The case is set to continue as both parties prepare for further legal proceedings.

    Source: Bloomberg News