SEARCH DOMINANCE FOCUS OF GOOGLE CASE

DOJ to outline legal case to attorneys general today

The Department of Justice’s impending lawsuit against Google has narrowed to focus on the company’s power over Internet search, a decision that could set off a cascade of separate lawsuits from states in ensuing weeks over the Silicon Valley giant’s dominance in other business segments.

In presentations to state attorneys general starting today, the DOJ is expected to outline its legal case centered on how Google uses its dominant search engine to harm rivals and consumers, said four people with knowledge of the plan, who spoke on the condition of anonymity because the details were confidential. Meeting with the state attorneys general is one of the final steps before the DOJ files its suit against the company, they said.

The DOJ’S action against Google is set to be narrower than what had been envisioned by some states and several career lawyers in the department.

The DOJ also investigated Google’s reach in ad technology and how the company prices and places ads across the Internet. But in an effort to file a case by the end of September, the DOJ decided to pick the piece that was furthest along in legal theory and that the agency felt could best withstand a potential challenge in court.

The DOJ and 48 states agreed to open their investigations into Google’s dominance a year ago as a bipartisan effort, but the last-minute jostling about what is included in the cases and how they should play out has exposed political fault lines. The department is seeking support of the search case and is set to file a lawsuit even without bipartisan support from state attorneys general, said two people with knowledge of the plan.

Separately, an investigation by state attorneys general of Google’s behavior in digital advertising — the source of virtually all of Alphabet’s $34 billion in annual profit — is nearly complete. That investigation, led by Ken Paxton, the Republican attorney general of Texas, is expected to lead to a suit accusing Google of tactics undermining competition in the online ad market, said a person briefed on the inquiry.

There is also the potential for an additional, broader suit by the states, led by Phil Weiser, the Democratic attorney general of Colorado. It would include more wide-ranging allegations of Google using its dominance of the search market to favor its shopping and other services, the person said.