A federal judge in New York has ruled that the multistate antitrust lawsuit against Google, which is being led by the Texas attorney general, can go ahead. Jedi Blue, was an illegal restriction on trade.
The judge said there was “nothing inexplicable or suspicious” about the two companies entering the agreement, according to Engadget.
It is reported that the states that filed the lawsuit against Google were accused of entering into a deal with Meta that gives the latter certain advantages over the advertising exchange run by the tech giant.
It is alleged that Meta was forced to abandon its plans to adopt new technology that would harm Google’s monopoly and support the tech giant’s Open Bidding approach when it comes to selling ads in return, according to Bloomberg.
Texas Attorney General Ken Paxton announced that he filed a multi-state lawsuit against Google for anti-competitive conduct, exclusionary practices and deceptive misrepresentations in 2020.
The lawsuit focused on Google’s advertising technology practices and how they were completed, according to Paxton using its “monopolistic power to control prices” for ads and “engaging in market collusion.”
Google sought to dismiss the lawsuit earlier this year, and while it failed to convince Judge Castell to drop the lawsuit entirely, the company still posted a celebratory note about the decision.
“Importantly, the court dismissed the allegations regarding the open tender agreement with Meta – a cornerstone of the AG Paxton case,” the company wrote in a blog post.
The tech giant added that the agreement was not a secret at all and that it was pro-competitive. She also described Paxton’s case as “deeply flawed”.
Although the judge in this case dismissed the claim that Jedi Blue was illegal, the deal and Google’s tech advertising practices as a whole remain under scrutiny by the authorities.
The European Commission and the UK Competition and Markets Authority launched an antitrust investigation into the companies’ agreement last March.
Last month, Bloomberg reported that the US Department of Justice was preparing to sue Google over its dominance in the ad market sometime in September of this year.