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Google must face video ad company's antitrust lawsuit, judge rules

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By Mike Scarcella

March 9, 20244:24 AM GMT+11Updated 7 days ago

March 8 (Reuters) - Alphabet’s Google (GOOGL.O) has lost a bid to dismiss a lawsuit in Manhattan federal court accusing it of driving digital media advertising company Inform out of business.

U.S. District Judge P. Kevin Castel ruled on Thursday that Inform can move ahead with part of its case, finding it plausibly alleged Google was unlawfully monopolizing the market for online video advertising.

The decision also said Inform could pursue millions of dollars in alleged damages but not seek an injunction that could force Google to change some business practices.

Castel’s 26-page order, which applies only to Inform's lawsuit, came in a larger coordinated antitrust case he is overseeing that includes advertisers, publishers and small businesses suing Google over its digital advertising practices. Google has denied any wrongdoing.

Inform's 2019 lawsuit said Google violated antitrust law with a change to its Chrome web browser that blocked video ads from Inform and other competitors but not from Google’s YouTube platform. Google’s conduct had the effect of “advantaging YouTube,” Castel wrote.

Google in a statement said Castel "significantly narrowed the case, aligning with previous decisions to dismiss similar claims in other cases." The company said it will further challenge what it called "meritless allegations."

A lawyer for Inform did not immediately respond to a request for comment.

Castel ruled in March that advertisers could move ahead in a proposed class action claiming Google illegally dominates the ad exchange market, though he also narrowed that case.

Google in a court filing last year said Inform’s lawsuit did not show any anticompetitive behavior or how it had driven the company out of business.
“Adopting new technology is wholly consistent with a vibrant and competitive market that antitrust law does not condemn,” Google said.

Google faces other claims alleging it has abused its power in the digital ads market.

In one case, the U.S. Justice Department last year sued Google in Alexandria, Virginia federal court. Texas is leading another related case in the state’s Eastern
District federal court.

Google is scheduled to face a jury trial in the Virginia case in September, and it will head to trial in March 2025 in the Texas case.

The case is Inform Inc v. Google LLC et al, U.S. District Court, Southern District of New York, No. 1:23-cv-01530-PKC.

For Google: Justina Sessions of Freshfields Bruckhaus Deringer

For Inform: Serina Vash of Herman Jones

Read more:

US judge says Google must face some advertisers' antitrust claims, dismisses others
https://www.reuters.com/legal/us-judge-says-google-must-fact-some-advertisers-antitrust-claims-dismisses-2024-03-01/

Google must face ‘smart’ keyboard app’s antitrust lawsuit, US judge rules
https://www.reuters.com/legal/transactional/google-must-face-smart-keyboard-apps-antitrust-lawsuit-us-judge-rules-2024-02-28/

Google to face US antitrust trial over digital ads in September
https://www.reuters.com/legal/google-face-us-antitrust-trial-over-digital-ads-september-2024-02-05/

Reporting by Mike Scarcella

https://www.reuters.com/legal/transactional/google-must-face-smart-keyboard-apps-antitrust-lawsuit-us-judge-rules-2024-02-28/