As a wave of antitrust actions surges against Google and Facebook, states in two lawsuits are stretching beyond the cases made by federal competition enforcers to level bold new claims. The states are taking new legal approaches as they join the widening siege against the two once seemingly untouchable behemoths.
The latest case came Thursday as dozens of states, including Minnesota, filed an antitrust lawsuit against Google, alleging that the search giant exercises an illegal monopoly over the online search market, hurting consumers and advertisers.
It was the third antitrust salvo to slam Google in the past two months. The U.S. Justice Department and attorneys general from across the country are weighing in with different visions of how they believe the company is abusing its immense power in ways that harm other businesses, innovation and even consumers who find its services indispensable.
The new lawsuit announced by Colorado Attorney General Phil Weiser echoes the allegations leveled earlier by the Justice Department against Google’s conduct in the search market. But it goes beyond them and adds important new wrinkles: It also seeks to stop Google from becoming dominant in the latest generation of technology, such as voice-assistant devices and internet-connected cars.
And, it claims, the company discriminates against specialized search providers that offer travel, home repair and entertainment services, and denies access to its search-advertising management tool to competitors like Bing.
The lawsuit was filed in federal court in Washington by the attorneys general of 35 states as well as the District of Columbia and the territories of Guam and Puerto Rico.
Google’s director of economic policy, Adam Cohen, said in a blog post that big companies should be scrutinized and Google is prepared to answer questions about how it works.
“But this lawsuit seeks to redesign search in ways that would deprive Americans of helpful information and hurt businesses’ ability to connect directly with customers,” he wrote.
On Wednesday, 10 states led by Republican attorneys general accused Google in a separate suit of abusing its power in online advertising to crush competition. They said the company’s anti-competitive conduct even included a deal with rival Facebook to manipulate ad sales — a totally new accusation.
The suit alleges that Google signed a pact with Facebook in 2015 that gave Google access to millions of WhatsApp users’ encrypted messages, photos and videos.
The suit, led by Texas, targets the heart of Google’s business — the digital ads that generate nearly all of its revenue, as well as all the money that its corporate parent, Alphabet Inc., depends upon to help finance a range of far-flung technology projects.
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