Wednesday, February 17, 2021

"Big Tech’s Next Big Problem Could Come From People Like ‘Mr. Sweepy’" (GOOG; FB)

 From the New York Times, February 16:

Government antitrust lawsuits have created openings for numerous private cases against Big Tech, with more expected to come. If successful, the cases could cost them dearly.

Google is facing antitrust cases from Europe’s top competition enforcer, the Justice Department and attorneys general from more than 30 states and territories.

Then there are the lawsuits from people like Mr. Sweepy.

The operator of a website called Sweepstakes Today, Mr. Sweepy — a nickname used by Craig McDaniel — says Google used its power over online advertising to bleed his website dry. In December, he filed a lawsuit against Google, saying he was entitled to “substantial” damages.

His case is one of what is expected to be a host of private antitrust lawsuits stemming from the government cases against Google and Facebook.

Already, more than 10 suits echoing the federal and state cases have been filed against one or both of the Silicon Valley giants in recent months. Many of them lean on evidence unearthed by the government investigations. Last month, for example, a media company in West Virginia sued Google and Facebook, arguing that the tech companies had worked together to monopolize the digital ad market. Its lawyers extensively cited evidence from the government cases.

Legal experts say many more suits are likely to be filed this year.

The suits add to the mounting legal pressure on the tech companies. Federal and state officials have filed three lawsuits against Google, saying it illegally maintained monopolies in search and the online advertising market. Lawsuits filed against Facebook by the Federal Trade Commission and a group of states could seek to break the company up.

If successful, private lawsuits could be costly for Facebook and Google. The companies work with millions of advertisers and publishers every year, and Google hosts apps from scores of developers, meaning there are many potential litigants. The damages could be significant. After the United States sued Microsoft for antitrust violations a generation ago, the company paid $750 million to settle with AOL, at that point the owner of the browser Netscape, which was at the core of the government’s case.

“There’s a fair amount of scrambling going on and folks trying to figure out what private suits might be successful and how to bring them,” said Joshua Davis, a professor at the University of San Francisco’s law school....

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Meanwhile in Australia Google apparently has had second thoughts about their threat to leave the country. From the Sydney Morning Herald, February 15:

Google closing in on news content deals with ABC, Nine, Guardian

Google has stepped back from a threat to shut down its search engine locally and is on the brink of striking commercial deals with some of Australia’s largest news organisations after months of hard fought negotiations over planned media bargaining laws.

The ABC, Nine Entertainment Co (owner of this masthead) and Guardian Australia are in eleventh-hour negotiations with the $1.8 trillion tech giant for use of their content on various Google services. Industry sources briefed on the talks indicated the deals could be reached within 48 hours. However, while the talks are in advanced stages, there is no guarantee the agreements will be completed....

....MUCH MORE

 Previously on the Australian story: 

"Google threatens to withdraw search engine from Australia" 

As Google Threatens To Leave Australia, Microsoft's Bing Attempts To Cozy Up To PM