Google Loses Bid to Dismiss Lawsuit Accusing it of Monopolizing Digital Advertising

Google faced a setback in a Manhattan federal court as it lost its bid to dismiss a lawsuit filed by digital media advertising company Inform. The lawsuit accuses Google of engaging in monopolistic practices that allegedly led to Inform going out of business.

US District Judge P. Kevin Castel’s ruling on Thursday allowed Inform to proceed with part of its case, stating that the company had plausibly alleged Google’s unlawful monopolization of the online video advertising market, as reported by Reuters. While the decision permits Inform to pursue millions of dollars in alleged damages, it does not grant the company the ability to seek an injunction that could compel Google to change certain business practices.

In response to the ruling, Google issued a statement asserting that Castel had “significantly narrowed the case,” aligning with previous decisions to dismiss similar claims in other instances. The company emphasized its intention to continue challenging what it referred to as “meritless allegations.”

Related: Antitrust Suit Against Google Returns To Texas

This is not the first legal battle Google has faced regarding its dominance in the digital advertising arena. Earlier in March, Castel ruled that advertisers could proceed with a proposed class action lawsuit alleging that Google illegally controls the ad exchange market. However, he also narrowed the scope of that case, according to Reuters.

Google has consistently maintained its stance, arguing that adopting new technology is a natural part of a competitive market and does not constitute anticompetitive behavior. In a court filing last year, Google contended that Inform’s lawsuit failed to demonstrate any anticompetitive conduct or how it contributed to the demise of the company.

The tech giant is grappling with additional legal challenges related to its alleged abuse of power in the digital ads market. Notably, the U.S. Justice Department filed a lawsuit against Google in Alexandria, Virginia federal court last year, while Texas is leading another related case in the state’s Eastern District federal court.

Source: Reuters