[HN Gopher] States bring action against Google under federal and... ___________________________________________________________________ States bring action against Google under federal and state antitrust laws [pdf] Author : pondsider Score : 116 points Date : 2020-12-16 21:10 UTC (1 hours ago) (HTM) web link (www.texasattorneygeneral.gov) (TXT) w3m dump (www.texasattorneygeneral.gov) | Despegar wrote: | The most interesting thing is the allegation of coordination | between Google and Facebook on page 5, paragraph 12. | jml7c5 wrote: | The potentially interesting part seems to be redacted? What is | under that black box could be anything from incredible to | mundane. | three_seagrass wrote: | Google collaborates with many of the FAANGs - like Apple and | the contact tracing APIs - so I'm really curious what made the | cut here with Facebook. | nl wrote: | Did you read the paragraph posted? | | It's pretty clear (in the context of a monopoly complaint): | | _In March2017, Google's largest Big Tech rival, Facebook, | announced that it would throw its weight behind header | bidding. Like Google, Facebook brought millions of | advertisers on board to reach the users on its social | network. In light of Facebook's deep knowledge of its users, | Facebook could use header bidding to operate an electronic | marketplace for online ads in competition with Google. | Facebook's marketplace for online ads is known as "Facebook | Audience Network" or FAN. Google understood the severity of | the threat to its position if Facebook were to enter the | market and support header bidding. To diffuse this threat, | Google made overtures to Facebook. Internal Facebook | communications reveal that [redacted]_ | | and | | _In the end, Facebook curtailed its involvement with header | bidding in return for Google giving Facebook information, | speed, and other advantages in the auctions that Google runs | for publishers' mobile app advertising inventory each month | in the United States. In these auctions, Facebook and Google | compete head-to-head as bidders... [snip].. The parties agree | on for how often Facebook would [redacted] publishers' | auctions--literally manipulating the auction with [redacted] | for how often Facebook would bid and win._ | three_seagrass wrote: | Nope, I missed that part. That definitely seems like bid | rigging collusion if true. | switch11 wrote: | that is super interesting | | Waiting for when they realize there is a silent agreement | between Amazon + Google + Facebook | | and that they do coordinated attacks against their rivals | | and also against any company that is growing quickly | dang wrote: | Related: https://www.nytimes.com/2020/12/16/technology/google- | monopol... (via https://news.ycombinator.com/item?id=25448786, | but no comments there) | hardtke wrote: | The subtitle of the New York Times article is misleading if not | flat out wrong: "The suit focuses on the advertisements that | generate a vast majority of the company's profits." The | DoubleClick ad exchange most certainly does not generate the | vast majority of the the company's profits. Search ads are | completely independent of this lawsuit. | nl wrote: | In the context of the article (which also talks about the | other separate case brought against Google) the fact that | this goes after advertising - which does "generate the vast | majority of the company's profits" is accurate in the | emphasis on Google's income. The fact that it only goes after | one part doesn't make that untrue or misleading. | vmception wrote: | Regulate data brokers like commodities brokers. | | Easy peasy. Put them under CFTC jurisdiction. | | Series 3 NFA exams for everyone. The spot market keep limited | oversight, the future value of data markets get complete | oversight. | satellite2 wrote: | The issue is that those are future contracts that expire in a | few milliseconds, so by definition they are almost totally | illiquid. | | At the same time you cannot really force more time for the | auction as users often spend less than a second in front of an | ad screen. So you effectively have only a few milliseconds to | sell them, otherwise you would have sold an already perished | product... | | So I'm not sure the existing regulations regarding future | contracts could effectively regulate this market. | paxys wrote: | None of this makes any sense. What even is a "data broker"? And | how will taking a random exam help? | Andrex wrote: | > 16. Having reached its monopoly position, Google now uses its | immense market power to extract a very high tax of [redacted] | percent of the ad dollars otherwise flowing to the countless | online publishers and content producers like online newspapers, | cooking websites, and blogs who survive by selling advertisements | on their websites and apps. These costs invariably are passed | onto the advertisers themselves and then to American consumers. | The monopoly tax Google imposes on American businesses-- | advertisers like clothing brands, restaurants, and realtors--is a | tax that is ultimately borne by American consumers through higher | prices and lower quality on the goods, services, and information | those businesses provide. Every American suffers when Google | imposes its monopoly pricing on the sale of targeted advertising. | | Seems like a KO punch under the Sherman Act. | newbie578 wrote: | Interesting, would really like to know what the ideal government | solution would look like? | | Also, if Facebook and Google are charge with antitrust, I expect | Apple and Amazon to follow suit.. | paxys wrote: | FWIW, several states declined to participate in the lawsuit since | the Texas AG is involved in pretty major corruption and bribery | scandals. He is allegedly among those in line to get pardoned by | Trump before he leaves office. He also was the one who filed the | recent Supreme Court challenge to throw out votes from 4 swing | states. | | https://www.texastribune.org/2020/10/05/texas-ken-paxton-bri... | mikysco wrote: | This complaint (and all anti-trust) simply comes down to how the | legal body defines the market and to what extent Google dominates | said market, no? It'll be interesting to watch this work through | the system. | llacb47 wrote: | So many redactions | malchow wrote: | As someone who held numerous briefings helping to put this case | together, I think it is extremely strong -- in fact, it will be | difficult to imagine a cognizable defense. My congratulations to | the several states who joined together to delve deep into those | deleterious actions in the ad market which have so harmed the | open internet. | jeffbee wrote: | This comment does not exactly refute the meme that the suit is | part of a vast right-wing conspiracy against Google. | ForHackernews wrote: | Even a blind squirrel finds a nut occasionally. Google is big | enough and manipulative enough to have fully earned its | enemies on both sides of the political aisle. | justicezyx wrote: | Given the merits of the case itself, and it's long term | importance and short-term impact, I think the inclination to | drag the discussion into political debate is not useful | moosey wrote: | The problem with the colloquial 'conspiracy' (as opposed to | the standard legal definition of people working together | towards a generally nefarious goal), is that they are | impossible to disprove, for the most part. Evidence to the | contrary is disregarded, and the lack of supporting evidence | is used as additional evidence ('the real evidence is being | hidden by those in power'). | | What I see in these documents, and based on responses, is | that the case is strong. I do see that it is from states that | disagree with me philosophically and politically. This | information is irrelevant and is categorization error and | outgroup bias; the same things that I would request my | current political opposition to give up, without success. | | If we all suffer from these cognitive illusions and refuse to | abandon them, then we cannot grow as a society or a people; | we can never have a shared understanding because the | experiences I am basing decisions on are not a real. | | Discussing a "Vast right-wing conspiracy against Google" | might be falsifiable with perfect information, but what | percentage of 'right wing' conspirators must there be before | it is determined true? How many 'right-wing' members - of | which there are at least 74M - would I have to poll to find | out if the conspiracy is vast? | | I don't deny that we are in an [mis]information war, but the | boundaries of that are much better known and are often | discussed by security experts. | grecy wrote: | ... and what are the potential consequences for google? I slap | on the wrist and a fine that is 0.01% of the amount of profit | they made from all this? | [deleted] | barney54 wrote: | I like to hear from a legal expert if Texas' arguments here are | any better than in their recent election lawsuit. | dang wrote: | " _Eschew flamebait. Don 't introduce flamewar topics unless | you have something genuinely new to say. Avoid unrelated | controversies and generic tangents._" | | https://news.ycombinator.com/newsguidelines.html | jeffbee wrote: | How is that unrelated? The lead AG in this suit filed a | different suit less than a week ago with some incredibly | spurious reasoning, including that the president-elect of the | USA stood only a 1-per-1000000000000000 chance of having won | the election fairly. | hexsprite wrote: | Their election lawsuit was never heard on it's merits, so your | comment doesn't really apply. | dimator wrote: | I don't understand your comment. Did the SCOTUS not read the | whole thing before passing on it? | mankyd wrote: | Whether they read it or not, they didn't comment on its | merits, but rather said plainly that Texas doesn't have | standing. That is to say, something may be amiss, but Texas | can't be the one to sue over it. | | It's like if something went missing in your house, and your | neighbor decides to sue because they think a thief stole | your stuff and you didn't do a good enough job | investigating. | asdfasgasdgasdg wrote: | Wouldn't the lack of standing be an aspect of the merits | of the suit? In any case, the supreme court isn't the | sole judge of the merits of a case, they are just the | arbiters of the outcome. | CobrastanJorji wrote: | In English, yes. However, "on the merits" is a term of | art that explicitly excludes procedural matters like "can | you even bring this case" or "did you file on time." | Standing is a procedural issue. | | So while the suit was thrown out for being obviously | faulty, it did not fail "on its merits." Mind you, that | does not make the objection sensible. If I write "they | are bad because they are a poopy face" in crayon, and | then I don't pay my filing fees and the case is thrown | out for that reason, I am technically correct that my | case was not heard on its merits, but that doesn't make | it a good point. | colonelanguz wrote: | Standing and merits are both terms of art. Merits | essentially means whether one side wins or not. Standing | OTOH is a preliminary matter like jurisdiction. If the | court lacks jurisdiction over the defendant or the | subject matter of the dispute, they kick the case on | jurisdiction without reaching the merits. If the | plaintiff doesn't have standing, they kick the case on | standing without reaching the merits. | | Your confusion is 100% reasonable because there is | _conceptual_ overlap between standing and "who wins." For | example, one aspect of standing is "injury-in-fact." That | means "you suffered a harm recognized by the legal | system." If the court says no standing because no injury- | in-fact, to a layperson that's similar to saying "stop | crying, go home." Which sounds a lot like saying "you | lose the case." | jeffreyrogers wrote: | The case went to the Supreme Court. It wasn't tried in | any lower courts because cases between states have | original jurisdiction in the Supreme Court. | | The Supreme Court can reject a case for lack of standing | (the plaintiff does not have the right to sue the | defendant) or for lack of merit (the lawsuit is obviously | frivolous). They can also reject it if they think the | lower court ruled correctly, but that doesn't apply here. | joshuamorton wrote: | > Whether they read it or not, they didn't comment on its | merits, but rather said plainly that Texas doesn't have | standing. That is to say, something may be amiss, but | Texas can't be the one to sue over it. | | Sort of. Thomas and Alito said that they would hear the | case, but wouldn't grant any of the requested relief. | This still technically doesn't comment on the merits (the | relief requested was not really grantable), but its more | than just Texas can't sue over it, even if they could the | things they were asking for couldn't be done. | cure wrote: | Well... let's say the reputation of the Texas AG is more than | a little stained by that stunt. I think the skepticism is | well deserved. | TameAntelope wrote: | Texas, Arkansas, Indiana, Mississippi, North Dakota, South | Dakota, and Utah also signed the effort to overturn the | election results of Georgia, Michigan, Pennsylvania and | Wisconsin (who are all absent from this action). | | The overlap is interesting, IMO. | jacobolus wrote: | The AG of Texas is an indicted fraudster whose deputies | keep quitting as whistleblowers alleging further crimes, | and the FBI is investigating him for bribery. | | The election stunt is a pretty obvious play for a pardon | from Trump. | whammywon wrote: | Can pardons be given prior to conviction? | | Edit: According to NBC News, POTUS can pre-emptively | issue a pardon. | | [0] - https://www.nbcnews.com/politics/donald- | trump/could-trump-pa... | whammywon wrote: | Maybe so, but I wouldn't be surprised if it earned him | brownie points from fervent Trump supporters. It may even | get him re-elected by those supporters, assuming he isn't | indicted... | jeffbee wrote: | You mean indicted again? He's been indicted on five | counts of felony securities fraud for five years and is | still being prosecuted. | whammywon wrote: | Ah I didn't know that he's already currently under | indictment. Today I learned... | | But yes, if he has something that he can point to when | re-election time comes around and say "Look, I tried to | help Trump out" then it will probably guarantee him | votes. | | I'm a Texas resident and didn't know he had already been | indicted. But I tend to vote Libertarian for local and | state positions so I didn't really look too much into his | background. | spdustin wrote: | I know you're writing about the Texas lawsuit, but that suit | was tangentially related to, among others, the lawsuit in | Wisconsin, which made similar allegations that state laws | were not being followed. | | Generously, that lawsuit in Wisconsin _was_ heard on its | merits [0]. It was dismissed with prejudice. | | The Federal judge that issued the ruling--a Trump appointee-- | said: "This is an _extraordinary_ case. A sitting president | who did not prevail in his bid for reelection has asked for | federal court help in setting aside the popular vote based on | disputed issues of election administration, issues he plainly | could have raised before the vote occurred. This Court has | allowed plaintiff the chance to make his case and he has lost | on the merits. In his reply brief, plaintiff "asks that the | Rule of Law be followed." (Pl. Br., ECF No. 109.) It has | been. " | | [0]: https://assets.documentcloud.org/documents/20423518/trum | p_ca... | wavefunction wrote: | The argument was literally that the State of Texas has an | interest in the elections of other states and was rejected on | a lack of standing which is an emphatic "No" to the argument. | jeffreyrogers wrote: | Standing is not merits. These are legal terms that have | legal definitions. | asdfasgasdgasdg wrote: | Perhaps not in formal legal parlance, but if the top | commenter was asking about merits in the common | understanding of the term (which stands to reason given | they are a non-lawyer) then standing is definitely an | aspect of the merits of a case. | jeffreyrogers wrote: | "Heard on its merits" is a legal phrase as well. I think | hexsprite knew exactly what they were trying to say. | StillBored wrote: | As a Texan this is really what upsets me more about these fake | lawsuits that Texas keeps tossing out, mostly to make political | statements. The election suit is hardly the first. Someone | appears to have discovered that the state can't be censured or | have its legal license revoked. So they are making a mockery of | the actual legal power of the state. | | But of course anyone who digs into the jurisdictional games the | Texas AG has been playing to avoid criminal prosecution | wouldn't be surprised at this behavior. | tick_tock_tick wrote: | Here we go I figured after the FTC filed against facebook Google | had to be right around the corner. It is interesting that it's | almost all conservative state filing maybe they want to avoid | issues with the DNC and it's close relationship with Google? | refulgentis wrote: | This was announced a month or two back, complaint came out | today, TL;DR the case theory is weak and perceived as rushed so | many, many, states didn't opt-in and are working on their own | action | | (side note: winks at politically-based conspiracies aren't | something I'm used to seeing on HN, it beggers belief that | you'd have 36 states, mixed politically, agree to collude in | favor of the _checks notes_ DNC because _checks notes_ Google | 's ex-CEO got involved in politics work _checks notes_ after he | exited) | nl wrote: | The complaint a few months ago was different to this one. | | That one was pretty weak (IMHO), but this one seems narrower | focused and much stronger. | shemnon42 wrote: | Not quite after he exited. It was while he was Chairman of | the Board, and in at least one instance he used his Google | email to engage in political work that would get any other | Googler sanctioned, but got a pass because he's Eric Schmidt. | Had he used personal emails in all cases it would have been | ok per corporate rule. | | The rest of your claims are indeed tin-foil hat worthy. | brandmeyer wrote: | Simpler explanation: political relations have severely broken | down all over the country. Maybe the (R) attorneys general and | their offices just couldn't get along well enough with the (D)s | to file anything together. | jagged-chisel wrote: | Texas, Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, | North Dakota, South Dakota, and Utah | | vs. Google | | And the crux of the complaint seems to be: | | "As internal Google documents reveal, Google sought to kill | competition and has done so through an array of exclusionary | tactics, including an unlawful agreement with Facebook, its | largest potential competitive threat, to manipulate advertising | auctions." | wnevets wrote: | is this the same texas ag that tried to overturn the election? | paxys wrote: | Yes. It was a stunt to get a pardon from Trump before he | leaves office, considering he is involved in several lawsuits | ranging from securities fraud to bribery. | adrr wrote: | Complaint is based on the Sherman act. Sherman act requires | harm to the end customer which be interesting to see how they | show a negative impact to the public. I have free email, web | browser, maps and other things paid for by google. | nl wrote: | The end customers for advertising are businesses. | | The argument in the complaint is this (paragraph 16): | | _The monopoly tax Google imposes on American businesses-- | advertisers like clothing brands, restaurants, and realtors-- | is a tax that is ultimately borne by American consumers | through higher prices and lower quality on the goods, | services, and information those businesses provide. Every | American suffers when Google imposes its monopoly pricing on | the sale of targeted advertising._ | reidjs wrote: | Could you make the argument that because it's nearly | impossible to compete with their free offerings, no other | company has a chance in that space? | jeffreyrogers wrote: | From what I've read, this is the direction some anti-trust | lawyers want the interpretation of the law to go in. | nl wrote: | Hopefully this doesn't work. That will cause enormous harm | to consumers, particularly as compute and bandwidth costs | continue to fall. | | Free to consumers is generally a net good, since it gives | them access to things they wouldn't otherwise have. | cle wrote: | I thought this was a dead horse, but you are not the | customer. | godtoldmetodoit wrote: | The customer in the context of ad buys is every business | attempting to do online marketing. You are the product. | JumpCrisscross wrote: | > _customer in the context of ad buys is every business | attempting to do online marketing_ | | Courts interpreting SS 1 of the Sherman Antitrust Act have | generally used the term "consumer welfare," which sidesteps | this issue. (The original text makes no reference to this | concept.) | ballenf wrote: | The only service Google offers for free is showing ads. | Everything else is just the vehicle used to improve or | display those ads. | [deleted] | paxys wrote: | If they have helped the user through A, B, C, D and E, and | hurt them through F, you can still take them to task for F | specifically. The fact that they funded the rest from profits | gained through F isn't really a valid defense. | jeffbee wrote: | What's it going to take for governments to produce PDFs with | hyperlinked tables of contents? | azuriten wrote: | I don't think I've ever come across any legal document/lawsuit | or otherwise, that was formatted in a way that made it easy to | read. | | I know it's on purpose like with Privacy Policies/Terms of | Service but I really want to read them and know what I'm | getting myself into. It's just that they do such a good job of | obfuscating everything with legalese. At least with Terms of | Service, there's a handy extension called "Terms of Service, | Didn't Read". https://tosdr.org/ | stordoff wrote: | I've seen some miserable formatting in older contracts. I was | doubling-checking the documents for a house sale a few years | ago, and came across a sentence that was over half a page | long without _any_ punctuation. Even though I have a law | degree, it took me the best part of half an hour to be 100% | confident of the intended meaning and that I hadn't | overlooked something. | curiousllama wrote: | Legalese is a technical language. As far as I'm concerned, | it's as close to plain English as SQL: close at first glance, | but actully quite distinct. | [deleted] | ortusdux wrote: | Tax money. You get what you pay for. | [deleted] | MrStonedOne wrote: | >211. Google falsely told publishers that adopting AMP would | enhance load times, but Google employees knew that AMP only | improves the [redacted] and AMP pages can actually [redacted] | [redacted] [redacted]. In other words, the ostensible benefits of | faster load times for cached AMP version of webpages were not | true for publishers that designed their web pages for speed. Some | publishers did not adopt AMP because they knew their pages | actually loaded faster than AMP pages. | | Vindication for everybody pointing out that amp pages don't | actually load faster, they were just incompatible with things | that commonly made sites load slower. | | >212. Google also [redacted] _of non-AMP ads by giving them | artificial one second delays_ in order to give Google AMP a | [redacted] [redacted] slows down header bidding, which Google | uses to turn around and denigrate header bidding for being too | slow. | | Seems damning. (emphasis mine) | | Wonder what all the redacted is. | | Also glad to see that google's preferring of amp sites in | searches is going to get them in trouble, as that was basically | the primary complaint I had with it. AMP pages would show up in | searches for dynamic content, despite its restriction of static | pages | scarmig wrote: | Entirely aside from the merits, I'd be so happy if this lawsuit | somehow resulted in the destruction of AMP. | tgsovlerkhgsel wrote: | > they were just incompatible with things that commonly made | sites load slower. | | I always thought that was the entire point. | CivBase wrote: | This is the first I've heard of that one-second delay. That's | downright evil. Whoever is responsible for that should be | ashamed. | ForHackernews wrote: | I wonder how the team adding in that extra delay justified it | to themselves? | | I always wonder this with things like the Volkswagen | emissions cheating - how do those engineers rationalise it? | blacksmith_tb wrote: | Well, working in ad-tech is pretty much bad from the get- | go, this just seems like more of the same to me. To be | fair, unlike VW diesels, it's also not directly damaging | anyone's health, but it's still a nasty business. | inetknght wrote: | > _it 's also not directly damaging anyone's health_ | | I completely disagree. Have you noticed how much targeted | advertising has sold out our world and affected peoples | ability to rationally think? | short_sells_poo wrote: | They justified it by earning very high salaries. Turned | around, it is very difficult for a person to see a problem, | if their salary depends on not seeing the problem. | jefftk wrote: | It looks to me like the design for this was | https://github.com/ampproject/amphtml/issues/3133 | | (Disclosure: I work on ads at Google, and I'm friends with | some of the people at the link) | three_seagrass wrote: | So tl;dr: Traditional HTML+JS ads have always needed an | extra second delay to load because of cross-domain UX | degredation, but because AMP is pre-caching pages, they're | able to pre-cache the ads too? | | Is that what I'm reading? | asdfasgasdgasdg wrote: | I believe that the idea is that if the ad is amp, you can | be sure it will load fast and not impede the ux of the | page, whereas if it's html/js, you can't. It isn't about | whether it is cached or not. | mtgx wrote: | People are way too quick to defend Google around here - and | I'm saying that as a former Google _evangelist_. | | Google does a LOT of crap like that these days. Most people | just aren't aware just how "evil" they've become, or prefer | to defend them with nonsensical arguments like "see, Google | still throws the Don't Be Evil motto somewhere at the very | end of their multi-page work of conduct document, so | technically they still believe in it!" | absolutelyrad wrote: | Name and shame every employee that contributed to these | things. Then break up Google. | redisman wrote: | What good do these witch hunts accomplish? Punish the | senior leadership that demanded this feature | absolutelyrad wrote: | If you don't speak up, you're complicit. | calcifer wrote: | > What good do these witch hunts accomplish? Punish the | senior leadership | | I believe this line of thought and justification was | addressed for good in the Nuremberg Trials. | edgyquant wrote: | That is beyond hyperbole. These are people implementing a | caching feature not individuals leading human being into | death camps. A false equivalency seldom matched. | itsoktocry wrote: | > _Whoever is responsible for that should be ashamed._ | | Isn't it the CEO? | stefan_ wrote: | > Google also provided Facebook with a [...]. Google subjects | other marketplaces competing for publishers' inventory in Open | Bidding to 160 millisecond timeouts. Competitors have actively | complained that is not enough time to recognize users in auctions | and return bids before they are excluded. By comparison, Google | [...]. The longer timeouts granted by Google were presumably | designed to aid FAN win more auctions to abide by the spirit of | the agreement. | | Not sure why these were redacted but it seems pretty clear what | happened. Is Google actually running the monopoly marketplace and | tilting the scales in its own favor? That seems like a knockout | right there. | sanxiyn wrote: | Note: quote above is paragraph 186. | | Google started by giving Facebook longer timeout, but they went | further. Paragraph 194 says: | | > The agreement allocated a portion of publishers' auction wins | to Facebook, subverting the free operation of supply and | demand. | | Now wins are simply allocated to Facebook without competition. | xxpor wrote: | I can't read the pdf because for some reason it flashes every | second on whatever brave is using for pdf rendering. | | Do they discuss why states have standing to sue for violations of | the Sherman act? Maybe this is a common thing but states trying | to enforce federal law in federal court seems strange. | redis_mlc wrote: | > Maybe this is a common thing but states trying to enforce | federal law in federal court seems strange | | Any inter-state action would be in federal court. Think about | it for a minute ... | jerbs wrote: | It's fairly common in antitrust. Section 16 of the Clayton Act | [1] gives states power to bring federal antitrust suits on | behalf of their residents, and states will often bring both | federal antitrust claims and state antitrust/unfair and | deceptive trade practices claims in the same suit, as the | states here are doing. Incidentally, if you're interested in | the surprisingly expansive role of state attorneys general, the | National Association of Attorneys General has published a | fascinating (though pricy) book that goes into the common | powers of state AGs in more detail than anybody would want.[2] | The website for James Tierney's State AGs course at Columbia | also has a lot of interesting readings.[3] | | [1] https://www.law.cornell.edu/uscode/text/15/15c [2] | https://www.naag.org/publication/state-attorneys-general-pow... | [3] https://www.stateag.org/syllabus-2020 | gnz00 wrote: | It doesn't seem to touch on the most glaring abuse in my opinion, | which is the widgets on their search page that directly competes | with websites bidding for page ranking. ___________________________________________________________________ (page generated 2020-12-16 23:00 UTC)