Google Wins Another Round in Antitrust Battle Over Apple Search Deal

In a legal victory for Alphabet Inc.’s Google, a federal judge has once again dismissed an antitrust lawsuit accusing the tech giant of an unlawful deal with Apple that allegedly stifled competition in the search advertising market. The ruling, delivered on Friday by Judge Rita F. Lin of the US District Court for the District of Northern California, marks the second time the plaintiffs’ complaint has been thrown out of court.

According to Bloomberg, the group of internet search users who brought the case against Google had already faced a setback in February when their original complaint was dismissed. Despite amending their lawsuit, the plaintiffs failed to present a compelling case, Judge Lin ruled. The plaintiffs allege that Google agreed to share billions of dollars in profits from its search advertising business with Apple, provided Apple refrained from entering the market as a competitor. They claim this agreement violated Sections 1 and 2 of the Sherman Antitrust Act, which prohibits agreements that restrain trade and attempts to monopolize.

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However, per Bloomberg, Judge Lin found that the plaintiffs still lack standing to pursue antitrust claims, damages, or equitable relief under the Sherman Act. The judge criticized the amended complaint for containing conclusory allegations that were too speculative to plausibly allege antitrust injury against Google.

“To the extent the Second Amended Complaint relies on these generalized allegations of harm, they remain ‘devoid of further factual enhancement’ and are insufficient to survive a motion to dismiss,” Lin stated in her ruling.

The plaintiffs have been granted another opportunity to amend their complaint, though Judge Lin specified that no new causes of action would be permitted in the third attempt. This leaves the plaintiffs with a narrow path forward as they seek to challenge the alleged Google-Apple deal in court.

Source: Bloomberg