• by Ray Schultz , Columnist, January 29, 2025

A federal court has handed a defeat to Google, ruling that a coalition of states has standing to sue the company over alleged anti-trust actions in the display ad market. 

Google had argued that the states lack standing to sue, but U.S. Judge U.S. Judge Sean D. Jordan ruled that the so-called Plaintiff States have alleged sufficient facts to establish “standing for all of their claims,” and denied Google’s motion to dismiss.

Mark this down as just another act in a long-running drama. Google will surely seek other legal relief and strongly fight this case, which it has the means to do.

Meanwhile, in one aspect of their lawsuit, the states charge that publishers are among those hurt.

They contend that Google’s monopoly has allowed it to charge publishers “supracompetitive” rates while “lowering the quality of its ad [server] for publishers below competitive levels,” Jordan reports in summarizing the charges.  

Jordan also notes the allegation by the states that Google “caused competing publisher ad servers to exit the market or significantly scale back their offerings, leaving publishers with little to no choice but to license [Google’s ad server].”

In addition, the judge also reports the claim that “Google’s anticompetitive conduct has led to higher prices, reduced output, lower quality, reduced innovation, the exit of rivals and foreclosed entry, affecting the Plaintiff States’ economies as well as the general welfare in the Plaintiff States.” 

These charges have yet to be litigated. But Jordan writes that the allegations “support an injury to Plaintiff States’ quasi-sovereign interests in protecting the economic well-being of their residents and likewise describe negative effects to substantial segments of their populations.” 

The case is on file with the U.S. District Court for the Eastern District of Texas, Sherman Division. The decision was first reported by Bloomberg Law.