50 States, Jurisdictions Launch Antitrust Investigation of Google Ad Business
Enforcers in 50 states and jurisdictions are investigating Google’s advertising business for antitrust violations, Texas Attorney General Ken Paxton (R) and 12 other AGs announced Monday, as expected (see 1909030053). Texas launched the probe Monday, issuing civil investigative demands to Google, South Dakota Jason Ravnsborg (R) told reporters after a news conference in Washington.
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Washington, D.C., and Puerto Rico joined 48 states for the investigation. California and Alabama aren’t participating and are free to join any time, Paxton said. Offices for AGs in the non-participating states didn’t comment. The probe isn’t a top-to-bottom examination of Google’s parent Alphabet, but evidence will determine its direction, Paxton said. Asked for comment, the company referred to last week's blog post.
The focus is ads, but concerns about privacy and other issues remain on the table, Utah AG Sean Reyes (R) told reporters. Other enforcement entities could focus on business conduct outside the ads, D.C. AG Karl Racine (D) said. The AG group is coordinating with DOJ Antitrust Division Chief Makan Delrahim, but the department’s recently launched tech investigation is a separate effort, Reyes said, but exchanging information remains a possibility.
Depending on evidence, administrative, civil and potential criminal remedies are options, Reyes said. The group doesn’t have enough information to speculate about remedies, Reyes added. He noted states probably don’t have authority to force Google to divest acquisitions. That would require coordinating with federal regulators, he said.
The purpose is to protect the free market and American consumers from potential abuses from an online search engine “juggernaut,” said Arkansas AG Leslie Rutledge (R). The investigation isn’t meant to be anti-tech, said Reyes, arguing its purpose is to benefit the tech ecosystem.
Google’s ad model is far different than when the search engine launched, said Racine, claiming its webpages are laden with Google products, services and company partners. If advertisers are paying higher costs than they should be, that cost is passed onto consumers, and it needs investigating, Paxton said. Many of the AGs disagree on other issues, but almost the entire country is aligned on this front, Paxton said. Google obviously dominates the search market, driving about 90 percent of traffic, he said.
It's a preliminary investigation, said Indiana AG Curtis Hill (R). No case has been opened, no indictment filed and no administrative or civil cause of action, Reyes said. The requests for information are a “serious” inquiry that can’t be ignored, he added.
It’s “extremely important” to determine the price consumers are paying to use a service like Google, said Florida AG Ashley Moody (R). Google’s dominance of the search market means it can pick winners and losers in the online market, which affects consumers, said Louisiana AG Jeff Landry (R). Tennessee AG Herbert Slatery (R) cited concerns about protecting data and acquisition of nascent companies, items the group isn’t yet investigating. Paxton said the facts could lead to probing items outside advertising. Alaska AG Kevin Clarkson (R), Missouri AG Eric Schmitt (R), Nebraska AG Doug Peterson (R) and Ohio AG Dave Yost (R) also participated in the news conference.