Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

More U.S. states join Texas-led antitrust lawsuit against Google

Published 2021-03-16, 12:18 p/m
© Reuters. FILE PHOTO: The Google sign is shown on one of  the company's office buildings in Irvine, California
GOOGL
-
AAPL
-
AMZN
-
META
-
GOOG
-

By Diane Bartz and Paresh Dave

WASHINGTON (Reuters) - Four more states have joined a lawsuit filed by Texas and others against Alphabet (NASDAQ:GOOGL) Inc's Google that accuses it of breaking antitrust laws to boost its already dominant advertising business, the Texas attorney general said on Tuesday.

Joining the lawsuit filed in December are Alaska, Florida, Montana, Nevada and Puerto Rico, Texas Attorney General Ken Paxton said. This brings the number of plaintiffs in the lawsuit to 15 states and territories.

The lawsuit was one of three filed last year by the federal government or states against Google.

In announcing Tuesday's amended complaint, Paxton and the other attorneys general also divulged details about Google's relationship with Facebook Inc (NASDAQ:FB).

"Our coalition looks forward to holding Google accountable for its illegal conduct and reforming Google’s practices in the future," Paxton said in a statement. "We are confident Google will be forced to pay for its misconduct through significant financial penalties."

Google is fighting the allegations, and a hearing scheduled for Thursday is expected to include discussion of the company's petition for a Texas federal court to move the case to California.

The lawsuit accuses Google of violating the law in how it dominates the steps in the process of placing ads online. It alleges Google quietly teams with its closest online advertising competitor, Facebook, and that it uses the excuse of protecting users' privacy to act unfairly. Publishers complain that one result has been lower revenues.

The amended complaint states that Facebook and Google "work together to identify users using Apple products," without elaborating. Apple Inc (NASDAQ:AAPL) in recent years on its Safari browser and iPhones has increased ways to block what it views as privacy-intrusive user tracking by ad tech companies, some of which have tried to devise circumvention measures.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Facebook, Google and Apple did not immediately respond to requests for comment.

The revised complaint also adds that beginning in 2015, Google could view messages from Facebook's WhatsApp service that users backed up to Google's Drive cloud storage system.

Google knew users were uninformed about its access, but "did nothing to correct this misunderstanding," the lawsuit states.

Google Drive gained almost 250 million new users by June 2016 because of the WhatsApp partnership, according to the lawsuit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.