Helena World Chronicle, LLC v. Google LLC and Alphabet Inc
Helena World Chronicle, LLC v. Google LLC and Alphabet Inc
Defendants.
COMPLAINT
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 2 of 96
TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................................. 1
III. PARTIES................................................................................................................................ 6
A. Plaintiff. ............................................................................................................................... 6
B. Defendants. .......................................................................................................................... 7
IV. AGENTS AND CO-CONSPIRATORS ............................................................................... 7
i
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 3 of 96
X. RELIEF ................................................................................................................................ 91
ii
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 4 of 96
Plaintiff Helena World Chronicle, LLC (“HWC”), on behalf of itself and all other publishers
of original news and reference websites (“Publishers”), 1 brings this Class Action Complaint (the
“Complaint”) against Defendants Google LLC and its parent entity, Alphabet, Inc. (collectively,
“Google”) for violations of: Sections 1, 2, and 3 of the Sherman Act (15 U.S.C. §§ 1-3) and
Section 7 of the Clayton Act (15 U.S.C. § 18). Plaintiff seeks treble damages, injunctive relief, and
damages pursuant to 15 U.S.C. §§ 15 and 26, as a result and consequence of Defendants’ unlawful
conduct. The relevant Class Period extends from November 1, 2019 through the date on which a
Class is certified.
I. INTRODUCTION
1. Google is starving the free press. Every year, it siphons off billions of readers and
billions of dollars from Publishers through an anticompetitive scheme that extracts their content,
publishes it on Google, and diverts readers and ad revenue. This scheme is part of an unlawful
strategy to attract, trap, and maximize users within a “walled garden” that entrenches Google’s
monopoly as the world’s largest search engine. Google has coerced Publishers into a Hobson’s
choice: surrender their content or disappear from search and lose the single largest source of
2. The key to this scheme is Google’s structure and dominance as a digital platform.
Digital platforms serve as gatekeepers to online markets by leveraging key barriers to entry: scale,
network effects, and switching costs. No platform has greater power than Google. That power now
rests on Google’s monopoly over general search services, where it controls nearly 90% of the
1
The term “Publishers” as used herein refers to publishers of original news and reference websites that produce and
publish original, non-fiction content in digital format, including digital newspapers, magazines, blogs, weather
reports, opinion and editorials, and reference works.
1
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 5 of 96
market and which it monetizes through search advertising. Google’s search monopoly is at the
heart of its dominance as a digital platform. It abuses that dominance to lessen competition in
associated and dependent lines of commerce—including digital news and reference publishing.
3. Google maintains its search monopoly and abuses it dominance through various
tying arrangements that lock in and exploit Publishers as input suppliers; through foreclosure
contracts that block rival search engines, and through more than 260 mergers and acquisitions that
misappropriates Publishers’ content and re-publishes it on Google’s platform. The tying product
is Google’s general search service. The tied product is digital news and reference content published
on Google Search through its patented question-and-answer technologies. Google launched this
tying scheme in 2012 through its WebAnswers project. In 2023, it amplified this scheme using
generative artificial intelligence (“GAI”) (in the form of its Bard chatbot, which provides answers
to a user’s questions in natural language) and its Search Generative Experience (“SGE”), which
responds to a user’s search by directing him or her to its own summary of what other websites say.
Google has repeatedly abused its dominance to force Publishers to supply the inputs for this tying
arrangement: their content. It falsely told Publishers that its modifications to Google Search would
increase their referral traffic and revenue, but the truth was the opposite. As one of Google’s AI
engineers recently admitted: “Direct answers reduce search referral traffic” and “[p]ressure”
Apple, Samsung and other mobile device manufacturers and browser developers. These
2
Marc Najork, Generative Information Retrieval, ACM Digital Library (July 24, 2023),
https://dl.acm.org/doi/abs/10.1145/3539618.3591871.
2
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 6 of 96
foreclosure contracts secure Google Search as the default search engine on the vast majority of
mobile devices and desktop computers. In 2002, Google and Apple entered into an anticompetitive
agreement where Google has in recent years paid Apple an estimated $18 billion a year to make
Google Search the default search engine in Safari, Apple’s web browser. As part of this restraint
on trade, Google currently pays Apple 36% of its search revenue over the Safari browser. Google
has made similar agreements with Samsung, the manufacturer of mobile devices running Google’s
Android operating system. Coupled with Google’s bundling Google Search with its own products,
including the Google Chrome browser, these agreements protect and maintain Google’s nearly
6. Third, Google maximizes this anticompetitive scheme through more than 260
mergers and acquisitions, enabling it to abuse and extend its dominance in, among others, four key
areas: digital display advertising, digital content, mobile operating systems, and AI. For example,
in search and cement its position as the default search engine on mobile devices. Google’s
acquisition of YouTube in 2006 gave it the largest trove of video content on the internet and
acquisition of DeepMind Technologies in 2014—and its 2023 merger of DeepMind with Google’s
own AI research lab Google Brain—is enabling it to protect its search monopoly from potentially
monopoly markets to digital news and reference Publishers—and ultimately to the marketplace of
ideas. Google has created a zero-click world in which users remain in its ecosystem and are
3
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 7 of 96
siphoned away from Publishers. Already, 69% of all Google searches result in zero click-through
traffic. Since roughly 80% of all Google searches are for informational content (i.e., news and
reference content), billions of consumers are now getting their news from Google. With an
estimated audience of 69.6 billion information-consumers per month, Google.com is far and away
8. Google does not produce this content; Publishers do. But they are forced to compete
on an unlevel playing field against their own products. The result is a staggering harm to
9. Publishers’ costs rose and their revenue fell from roughly $50 billion in 2005 to
$20 billion in 2022. Since 2005, America has lost more than a fourth of its newspapers (2,500) and
in print. Seventy million Americans now live in news deserts, with little to no local news coverage. 4
Newspaper employment has declined by 70% from 2005-22. Fewer reporters mean less original
reporting. Fewer editors and fact checkers mean fewer safeguards against misinformation.
Consumers face a loss of quality and choice in the marketplace of ideas. And America faces the
10. Plaintiff HWC owns and publishes two weekly local papers in Arkansas. It cannot
afford to sacrifice the referral traffic it receives from Google. But it also cannot afford to sustain
competitive injury under Google’s search monopoly and abuse of dominance. The antitrust laws
were designed to prevent a monopolist, or a structure achieved in part, through merger and
acquisition, from harming competition by abusing its monopoly or dominance. Plaintiff invokes
3
Penny Abernathy, The State of Local News: The 2022 Report, Northwestern Local News Initiative (June 29, 2022),
https://localnewsinitiative.northwestern.edu/research/state-of-local-news/report/.
4
Id.
4
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 8 of 96
the Sherman Act and Clayton Act to seek classwide monetary and injunctive relief to restore and
ensure competition for digital news and reference publishing, protect Publishers, and set up
guardrails to preserve a free marketplace of ideas in the new era of artificial intelligence.
11. This Court has subject matter jurisdiction pursuant to Section 4 of the Sherman Act,
12. This Court has personal jurisdiction over each Defendant because Defendants do
extensive business within this District — including by providing the monopolized services to class
members and consumers within this this district—and this action arises out of Defendants’ contacts
13. Venue is proper in this Judicial District pursuant to Sections 4 and 12 of the
Clayton Act (15 U.S.C. §§ 15 and 22), and 28 U.S.C. § 1391, because: (a) each Defendant transacts
business and is found within this District; (b) a substantial part of the events giving rise to the
alleged claims occurred in this District; and (c) a substantial portion of the affected interstate trade
and commerce was carried out in this District. Each Defendant has transacted business, maintained
substantial contacts, and/or committed overt acts in furtherance of the illegal scheme and
conspiracy throughout the United States, including in this District. Defendants’ conduct has had
the intended and foreseeable effect of causing injury to persons residing in, located in, or doing
14. Defendants’ conduct affects interstate trade and commerce. Defendants’ conduct
has a direct, substantial, and reasonably foreseeable effect on commerce within the United States.
15. This Court has subject matter jurisdiction pursuant to Section 4 of the Sherman Act,
5
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 9 of 96
16. This Court has personal jurisdiction over each Defendant because Defendants do
extensive business within this District — including by providing the monopolized services to class
members and consumers within this this district—and this action arises out of Defendants’ contacts
17. Venue is proper in this Judicial District pursuant to Sections 4 and 12 of the Clayton
Act (15 U.S.C. §§ 15 and 22), and 28 U.S.C. § 1391, because: (a) each Defendant transacts business
and is found within this District; (b) a substantial part of the events giving rise to the alleged claims
occurred in this District; and (c) a substantial portion of the affected interstate trade and commerce
was carried out in this District. Each Defendant has transacted business, maintained substantial
contacts, and/or committed overt acts in furtherance of the illegal scheme and conspiracy
throughout the United States, including in this District. Defendants’ conduct has had the intended
and foreseeable effect of causing injury to persons residing in, located in, or doing business
18. Defendants’ conduct affects interstate trade and commerce. Defendants’ conduct has
a direct, substantial, and reasonably foreseeable effect on commerce within the United States.
III. PARTIES
A. Plaintiff.
19. Plaintiff HWC is a Publisher. It owns two newspapers: Helena World and Monroe
County Argus, the latter of which was acquired in 2022. Both newspapers are available in print
and digital media and both deliver news and information to subscribers and online readers. Helena
World is printed out of Helena, Arkansas. Over the past 365 days, Helena World (online) has
averaged 1530 visitors per website per month with 402 referred from Google Search per month. The
Monroe County Argus is printed in Brinkley, Arkansas. It has been in circulation since 1875 and
6
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 10 of 96
now is also available online. The online version of Monroe County Argus likewise receives visits
referred from Google Search. HWC’s original works have been scraped and reproduced for the
purpose of training Google’s GAI products including Bard and SGE, and Bard has since plagiarized
an article from Helena World. On a daily basis, HWC’s original works continue to be scraped and
reproduced as inputs by Google’s GAI search product and are plagiarized on a regular basis as
B. Defendants.
20. Defendant Google LLC is a limited liability company organized and existing under the
laws of the State of Delaware, with its principal place of business in Mountain View, California.
Google LLC is an online advertising company providing internet-related products, including various
online advertising technologies, directly and through subsidiaries and business units that it owns and
controls.
21. Defendant Alphabet Inc. is a publicly traded company incorporated and existing under
the laws of the State of Delaware and headquartered in Mountain View, California. Alphabet Inc.
was created as a holding company for Google in late 2015, and Alphabet controls Google’s day-to-
day operations. Virtually all of Alphabet Inc.’s revenue comes from Google LLC. Since December
2019, Alphabet and Google have had the same Chief Executive Officer (Sundar Pichai (“Pichai”)).
As a result of Alphabet Inc.’s operational control, Google LLC is Alphabet Inc’s alter ego.
22. Google LLC and Alphabet Inc. are referred to herein collectively as “Google.”
23. The unlawful acts of Defendants set forth in this class action complaint were
the Defendants’ businesses or affairs. The Defendants’ agents operated under the explicit and apparent
7
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 11 of 96
authority of their principals. Each Defendant, and its subsidiaries, affiliates, and agents operated as a
24. Various persons and/or firms not named as Defendants may have participated as co-
conspirators in the violations alleged herein and may have performed acts and made statements in
furtherance thereof. Each acted as the principal, agent, or joint venture of, or for other Defendants
with respect to the acts, violations, and common course of conduct alleged herein.
V. FACTUAL ALLEGATIONS
25. Today’s digital economy is highly concentrated in the hands of a few firms that
dominate online markets and lines of commerce. These “digital platforms” operate as essential
mediation services, control key channels of distribution, and act as gatekeepers between consumers,
26. On October 30, 2023, President Joe Biden issued an Executive Order on the
development and use of AI in the United States. 5 One of the points that he emphasized was the need
to “promote competition in AI and related technologies, as well as in other markets. Such actions
include addressing risks arising from concentrated control of key inputs, taking steps to stop
unlawful collusion and prevent dominant firms from disadvantaging competitors….” 6 (Emphases
added). As the House Antitrust Subcommittee’s 2020 Report concluded, “dominant platforms are
able to exploit their gatekeeper power to dictate terms and extract concessions that no one would
5
The White House, Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial
Intelligence, 88 Fed. Reg. 75191 (Oct. 30, 2023), https://www.whitehouse.gov/briefing-room/presidential-
actions/2023/10/30/executive-order-on-the-safe-secure-and-trustworthy-development-and-use-of-artificial-
intelligence/.
6
Id.
8
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 12 of 96
27. The Federal Trade Commission (“FTC”) recently expressed similar concerns, saying
that the use of GAI raises significant competition issues by, for example, “further entrenching the
market power” of dominant firms. 8 There is no precedent in the United States economy for the power
of today’s digital platforms. And there is no digital platform with a greater sphere of influence than
Google. This lawsuit is intended to address such a failure of competition that exists now with respect
28. In 2020, the Antitrust Division of the United States Department of Justice (“DOJ”)
and various state attorneys general sued Google for antitrust violations. See United States v.
Google LLC., No. 1:20-cv-03010-APM (D.D.C.) (“DC DOJ Case”). Many of the Google internal
documents referenced throughout this Complaint have been used publicly at that trial, which ended
29. In analyzing Google’s unlawful maintenance of monopoly power and abuse of its
dominant position in the market (or line of commerce under Section 7 of the Clayton Act) for internet
general searches and the market (or line of commerce) for advertising searches, Google’s conduct
30. The facts set forth below summarize Google’s monopoly power and dominance within
7
Subcommittee on Antitrust, Commercial and Administrative Law of the Committee on the Judiciary, Investigation
of Competition In Digital Markets, Majority Staff Report. at 11 (2020) (“House Subcommittee Report”).
8
FTC, In Comment Submitted to U.S. Copyright Office, FTC Raises AI-related Competition and Consumer
Protection Issues (Nov. 7, 2023), https://www.ftc.gov/news-events/news/press-
releases/2023/11/InCommentSubmittedtoUSCopyrightOfficeFTCRaisesAIrelatedCompetitionandConsumerProtecti
onIssuesStressingThatItWillUseItsAuthoritytoProtectCompetitionandConsumersinAIMarkets.
9
Although the DC DOJ Case did not include any extensive analysis of Google’s more recent conduct regarding
Bard and SGE, and does not focus on Publishers, the trial was replete with expert testimony on some of the same
dominant market power that is at issue here and underscores the fact that abuse of that market power can have
devastating anticompetitive impact in the digital world.
9
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 13 of 96
the markets or lines of commerce at issue. That power and dominance was created in part through
key acquisitions of other companies; contracts with device manufacturers like Apple and Samsung
that excluded or foreclosed competing search engines from gaining a foothold; a 2016 contract
between Google and Apple that prevented the latter from developing any competing search engine
of its own; the years-long effort by Google to contain users seeking news and reference content in
its “walled garden” ecosystem; the misappropriation of Publishers’ web content; the rushed rollout
of Bard in 2023 in order to stifle competition from Microsoft; the introduction of SGE; and Google’s
decision this year to modify its AdSense terms in a way that disadvantages Publishers. 10 Google’s
abuse of its monopoly power or dominance has harmed Publishers in both the United States and
abroad. Each of these topics is discussed separately in the sections that follow.
31. Google was launched in 1998 as an internet search engine, serving search results
linking to third-party websites in response to users’ queries. 11 Google’s key feature was the algorithm
PageRank, which ranked the relevance of a webpage to a given search query by examining how
many other webpages linked to that page. By 2000, Google had become the largest search engine in
the world. 12 Its “ten blue links” became the gateway to the web for billions of users. The brand name
“Google” became a verb synonymous with internet search itself. When Google was in its infancy,
observers questioned how Google could monetize what appeared to be a free internet search
10
Google AdSense is a program designed for website publishers who want to display specific text, video or image
advertising on pages of their website and make money when visitors to the site see or click on ads.
11
Google Inc., Registration Statement (Form S-1), at 1 (Apr. 29, 2004),
https://www.sec.gov/Archives/edgar/data/1288776/000119312504073639/ds1.htm.
12
House Subcommittee Report at 174.
10
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 14 of 96
service. The answer was advertising. Google adopted a triple-product business model:
To become the behemoth that it is today, Google needed to maximize three key things: content,
users, and advertising. It did this by leveraging key barriers to entry to acquire and maintain a
monopoly in the market for general search services and entrench itself as a dominant digital
platform.
32. The general search services market (or line of commerce for Clayton Act purposes)
consists of “general search engines, which are ‘one-stop shops’ consumers can use to search the
internet for answers to a wide range of queries.” 14 General search engines can answer all types of
33. By contrast, what are referred to as “vertical search engines” are limited to specific
topics. For example, a search on Google for “sore throat treatment” returns a range of results, from
medical products to the latest scientific information and tips on treatment. However, a search on
Amazon—a vertical search service provider—only returns results for medical products. Consumers
would not find a vertical search a suitable substitute for general search.
34. The relevant geographic scope of the general search market is the United States.
Google provides users in the United States a distinct website that differs from those provided by
13
See Carlos Diaz Ruiz, Disinformation on digital media platforms: A market-shaping approach, New Media &
Society 9-10 (Oct. 30, 2023), https://journals.sagepub.com/doi/10.1177/14614448231207644.
14
Mem. Op. at 2, United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C. Oct. 6, 2023), ECF No. 728 at 6
(“SJ Op.”).
11
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 15 of 96
35. By any reasonable assessment, Google possesses monopoly power in the United States
market (or line of commerce pursuant to Section 7 of the Clayton Act) for general searches. According
36. As shown above, Google’s share of this market or line of commerce has been consistently
just below 90%. By contrast, Microsoft Corporation’s (“Microsoft”) market share, through Bing, which
incorporated the ChatGPT chatbot discussed below, has been consistently minimal in recent years. In
fact, according to one source, Microsoft’s market share for Bing declined in 2023, relative to 2022.16 In
denying summary judgment for the defense, the court in the DC DOJ Case emphasized Google’s
dominance of the general search services market: “[t]here are other search engines, of course: Microsoft’s
15
Statcounter: Global Stats, Search Engine Market Share United States of America, Nov. 2022 – Nov. 2023,
https://gs.statcounter.com/search-engine-market-share/all/united-states-of-america (last accessed Oct. 29, 2023).
16
Danny Goodwin, The new Bing has failed to take any market share from Google after six months, Search Engine
Land (Aug. 17, 2023), https://searchengineland.com/new-bing-google-market-share-six-months-430840.
12
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 16 of 96
Bing, Yahoo!, and DuckDuckGo, to name a few. But their market penetration pales in comparison to
Google’s. In 2020, Google’s share of the U.S. general search services market was nearly 90%, and even
higher on mobile devices. The market share of Google's closest competitor, Bing, was roughly 6%.”17
Technology who testified as an expert for the government in the DC DOJ Case, stated that if one
considered searches conducted through mobile phones, Google’s market share was just under
95%. 18He also said that there were high barriers to entry that allowed Google to sustain its market
power over a long period of time. These included fixed and sunk costs of operation, Google’s brand
recognition, the scale of its operations, and its control of access points through contracts with device
38. Google also has monopoly power and a dominant position in the search advertising
market. 20 Whinston estimated that as of 2021, Google has approximately 74% share of that market
as of 2020. 21 Reports in 2023 variously indicate that Google has a 79.8% or 71% share of the
17
SJ Op. at 2. The Court further observed that “because of its large market share in general search services, Google
also holds a superior market position in various search-related advertising market.” Id.
18
Trial Tr., United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C. Oct. 6, 2023) (Day 18) at 4762:25-
4763:2.
19
Id. at 4764:12-4765:3, 4766:2-9, 4766:13-15; 4767:7-10, 15:16.
20
Whinston also identified what was essentially a submarket of general search consisting of general text advertising
searches, in which Google had roughly the same market share as it does in the general search market. Id. at 4777:10-
13. That will not be discussed in this Complaint because it part of the broader market or line of commerce for
advertising searches generally.
21
Id. at 4779:15.
13
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 17 of 96
advertising search market in the United States. 22 More than 80% of businesses worldwide rely on
Google ad campaigns. 23 This power and position in the search advertising market is driven in part
39. Google’s dominance in the search advertising market bears upon Plaintiff’s claims
involving and Google’s recent change in how it compensates Publishers for AdSense traffic, which
is described in detail below. Its dominance is also a factor in its ability to engage in self-preferencing
tying conduct.
40. In 2000, Google branched out from search to digital advertising, launching AdWords,
its ad buying platform for such advertising. This service enabled businesses to purchase keyword
advertising that would appear on Google’s Search Engine Results Page (“SERP”). This launch
marked the first step in Google’s transformation of its SERP—the world’s portal to the web—into a
41. Since 2000, Google has increased its power as a digital platform and expanded beyond
search into numerous lines of commerce. It has become “the largest provider of digital advertising,
a leading web browser, a dominant mobile operating system, and a major provider of digital
mapping, email, cloud computing, and voice assistant services, alongside dozens of other
offerings.” 24
42. It was estimated that in 2020 alone, Google made $147 billion in revenue from online
ads and “[a]bout 16% of its revenue came from the company’s display or network business, in which
22
See Ahivanjali Pawar, Most Vital Google Ads Statistics Traders Need to Grasp in 2023 and Beyond, Enterprise
Apps Today (Oct. 5, 2023), https://www.enterpriseappstoday.com/stats/google-ads-statistics.htmll; Statista, Search
Advertising-United States. https://www.statista.com/outlook/amo/advertising/search-advertising/united-states (last
accessed Oct. 30, 2023).
23
Id.
24
House Subcommittee Report at 174.
14
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 18 of 96
other media companies use Google technology to sell ads on their website and apps.” 25 In 2022, as
described in further detail below, the European Publishers Council (which includes Press Publishers
like Axel Springer, News UK, Conde Nast, Bonnier News, and Editorial Prensa Iberica) sued Google
43. Internet search advertisements are distinct from general searches. In the words of Hal
Varian (“Varian”), the Chief Economist at Google, search advertisements satisfy demand rather than
create it. 27 For example, Booking.com made the following distinction between the two as shown in
25
Foo Yung Chee, Google’s advertising tech targeted in European publishers’ complaint, Reuters (Feb. 11, 2022),
https://www.reuters.com/technology/googles-advertising-tech-targeted-european-publishers-complaint-2022-02-11/.
26
Id.
27
Ex. No. UPXD103, United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C.),
https://www.justice.gov/d9/2023-10/417081.pdf at 22 (last accessed Oct. 30, 2023).
28
Id. at 23.
15
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 19 of 96
Advertisers recognize that Google is a necessary source of services for internet search
45. Google exercises its dominance in the line of commerce for digital news and reference
publishing.
46. News search is the single largest source of external referral traffic to news websites,
exceeding referral traffic from social media and direct traffic to publishers’ websites. 31 Users of news
search services are a distinct audience, with distinct demands from those consuming news through
29
Id.
30
Id. at 30, 31.
31
Aisha Majid, Search vs. social: How referral traffic to news sits has changed in five years, Press Gazette (April
13, 2023) (“Press Gazette Article”),
https://pressgazette.co.uk/media-audience-and-business-data/media_metrics/news-referral-traffic-breakdown/
16
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 20 of 96
other distribution channels. According to one study, 69% of news-search users who click through to
news websites only consume one category of news: “[b]ecause Search audiences are drawn to stories
with factual, timely information, they are less likely to move on to other categories after satisfying
47. Digital news and reference publishing is a significant line of commerce in the United
States. Before the internet became ubiquitous, Americans obtained original, fact-based informational
content from newspapers, magazines, and reference works (encyclopedias, dictionaries, almanacs,
etc.). Since the emergence of the web, the news, media, and reference publishing industry has shifted
to online distribution and consumption, as part of the digital content media ecosystem. The
percentage of Americans getting at least some of their news online rose from 2% in 1995 to 93% in
has led to the development of new formats for publishing informational content online, including
digital magazines and newspapers, encyclopedias, wiki, blogs, news aggregators, news search
platforms, and digests. In 2001, in recognition of this distinct emerging market, a trade association
called the Online Publishers Association (now called Digital Content Next) was formed, with
members including print and digital newspaper publishers (e.g., The Atlanta Journal-Constitution,
New York Times) and specialized vertical-content publishers (e.g., AARP, AccuWeather, Consumer
Reports, WebMD). 34 Digital news is a key line of commerce within this industry. In the United
32
Jack Neary, How widely do visitors read across news and media sites? Our data on breadth of visit, Chartbeat
https://blog.chartbeat.com/2023/08/01/how-widely-do-visitors-read-across-news-and-media-sites/ (last accessed
Oct. 30, 2023).
33
News Media Alliance, Google Benefit from News Content: Economic Study at 3 (June 2019),
https://www.newsmediaalliance.org/wp-content/uploads/2019/06/Google-Benefit-from-News-Content.pdf.
34
Kendall Moe, Choose your words wisely: The role of language in media trust, Digital Content News (Nov. 16,
2023), https://digitalcontentnext.org/blog/2023/11/16/choose-your-words-wisely-the-role-of-language-in-media-
trust/.
17
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 21 of 96
States, digital news publishing revenue is expected to exceed $27 billion by 2027. 35
48. Vertical news and reference search services encompass the breadth of non-
commercial “informational” searches which make up 80% of Google’s total searches. 36 Google
Search’s website, google.com, is the most widely used digital news and media website in the world,
queries per month. In contrast, Wikipedia (Google’s largest competitor in digital news and media
publishing) received only 4.5 billion visits in October of 2023. 37 In comparison, the largest
traditional news Publisher webpages receive monthly visits in the tens or hundreds of millions, not
billions. 38 In addition to Google Search’s news surfaces, Google News (a news aggregator website
and app) had 398.1 million visits in October 2023—the 16th most popular news site in the world. 39
49. Not only does Google own the most widely used search engine in this country, but it
functions as a news provider itself. Google plays several roles in the digital informational media
ecosystem: (1) connecting consumers to Publishers’ websites, (2) selling targeted search advertising,
(3) facilitating display advertising on Publishers’ websites, and (4) publishing Publishers’ news and
reference content on Google’s webpages and apps. This means that Google maintains both vertical
and horizontal relationships with Publishers. In their vertical relationship, Google connects
Statista, U.S. digital publishing industry—statistics and facts (Aug. 30, 2023),
35
https://www.statista.com/topics/1453/digital-publishing/#topicOverview.
36
Id.
37
Similarweb.com, Website Performance: Wikipedia.com (Oct. 2023).
38
The Wall Street Journal has roughly 83.5 million unique monthly visitors. Improvado, Wall Street Journal Media
Kit, https://improvado.io/resources/wall-street-journal-media-kit (last accessed Oct. 30, 2023). The New York Times
has roughly 130 million monthly readers. Maria Pengue, 25 Insightful New York Times Readership Statistics – The
2023 Edition, WorkUp (Mar. 14, 2021), https://letter.ly/new-york-times-readership-statistics/.
39
Similarweb.com, News and Media Category Leaders (Oct. 2023).
18
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 22 of 96
Publishers, which they purchase by giving Google access to their informational content.
content in its own right. In a competitive market, they must either produce or purchase the inputs:
informational content. But Google leverages its search engine monopoly to do neither. It
misappropriates third-party Publisher content, without paying licensing fees. This raises Publishers’
costs by forcing them to bear the labor and overhead costs of producing informational content plus
51. Put differently, Google’s conduct artificially suppresses the revenue flowing to
Publishers, who are no longer compensated with a fair flow of users’ seeking the content they
purchase or produce. Those users stay in Google’s “walled garden” ecosystem, where Google feeds
users the misappropriated publisher content directly. Google thus maintains its monopoly in search
by maximizing user attention on Google’s platform: users who do not navigate away from Google’s
SERP spend more time on Google’s platform, provide more data to Google, and perform more
searches, thereby exposing them to targeted search advertising. At the same time, Google uses the
misappropriated content to increase its share and dominance in the news and reference content
52. News search services are unique because they provide search results cross-ranked by
commercial segment (i.e., news), relevance, and timeliness. From a consumer perspective, the line
of commerce for vertical news search is distinct from the market for general search or other verticals.
For example, if a consumer searches for “Barack Obama” in a general search engine, the consumer
will expect a variety of results to be returned, including commercial results, as well as older and
evergreen results: e.g., U.S. government websites, biographical information about Barack Obama’s
life, links to his personal webpage and social media accounts, images and videos of the former
19
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 23 of 96
President, encyclopedia entries, etc. The results might originate from a combination of social media,
53. On the other hand, a user searching for “news about Barack Obama” would expect to
receive the latest information on the topic and to only see products from news publishers. This
tailored service is precisely what Google Search provides when a user clicks on the “News” vertical
and switches from general search to vertical news search. Indeed, in contrast to general search results,
vertical news search results are ranked chronologically to meet a user’s distinct demand for timely
20
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 24 of 96
54. Google also displays news digests and reference content across what it calls “News
surfaces” and “Knowledge Panels” across its various webpages and apps:
21
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 25 of 96
55. Google’s dominance over vertical news search services is underscored by its 95%
share of all referral traffic to news websites from its search engines originates from Google, while
only 5% originates from a handful of competitors: Bing News, Yahoo News!, and DuckDuckGo
News. 40
C. Anticompetitive Conduct
1. Acquisitions.
56. Google began its march to dominance in the aforementioned markets and lines of
commerce by acquiring key competitors in mobile devices, digital media, AI, and digital
advertising.
57. Google achieved its structure as a dominant digital platform, through a series of
strategic mergers and acquisitions designed to attract, trap, and monetize users of its search engine
services.
58. To date, Google has acquired 260 different entities, across various lines of commerce,
59. Several acquisitions highlight Google’s commitment to fortifying its walled garden in
search, through the acquisitions of entities in related and dependent lines of commerce. Four of these
acquisitions—of the mobile start-up Android, the video platform YouTube, the AI firm DeepMind,
and of the digital ad vendor DoubleClick—both reinforce Google’s monopolies and enable,
60. YouTube. Google acquired YouTube, the digital video platform, in 2006, in
furtherance of its “attract” strategy, to draw users to its platform with video content. Not only did the
acquisition of YouTube serve to attract users to the Google product family in general, but also
40
Press Gazette Article.
22
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 26 of 96
Google specifically leveraged the YouTube acquisition to fortify and contain users in its walled
garden ecosystem in search. News search queries on Google’s SERP frequently display a “Videos”
panel, which links directly to YouTube, regardless of whether a different third-party publisher
originally served the YouTube video from a news article or webpage outside of YouTube. Thus,
even if users click through for more information, they are not even taken to Publishers’ websites;
instead, they are diverted by Google Search into one of Google’s platforms for publishing digital
news: YouTube.
23
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 27 of 96
furthers Google’s ability to both attract and trap users in its walled garden search engine. Google’s
acquisition of DeepMind and other AI firms, because this technology enabled Google to further
refine its search engine algorithm, by enabling Google to extract more value out of the data Google
24
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 28 of 96
collected from the billions of users it had attracted to and trapped on its platform. 41 Moreover, as
discussed above, AI, when integrated into Google’s SERP as a means of publishing news content,
will further attract users to Google’s walled garden search engine by enabling Google to publish to
users exponentially more of the news content Google misappropriates from news publishers, without
users ever needing to leave Google’s SERP. In other words, Google’s AI technologies—developed
in part by its mergers and acquisitions—will strengthen Google’s ability to tie its general search
62. Android. In 2005, Google’s acquired Android, today the world’s dominant mobile
operating system running on 75% of the world’s mobile devices. As detailed in the section above,
Google leveraged its acquisition of Android to extend its search monopoly, and increasingly “trap”
users within its walled garden ecosystem. A recent House Subcommittee on Antitrust Report
captured Google’s intention to use its purchase of Android to strengthen and entrench its search
monopoly, noting that: “Google used its search engine dominance and control over the Android
operating system to grow its share of the web browser market and favor its other lines of
business.” 42
of its scheme to “monetize” its search monopoly. While Google views most of its informational news
searches as “advertising” to attract users to its walled garden, Google earns the majority of hundreds
of billions of dollars of yearly revenue through searches which it monetizes through search
advertising. Google’s acquisition of DoubleClick and related advertising technologies enable Google
to extract revenue from the billions of users it has attracted to and trapped on its search engine.
41
See Pl’s Pre-Trial Br., at 10, United States, et al. v. Google LLC, No. 1:20cv03010. (“Large-scale machine
learning,” Google posits, reveals that “the more we learn form our users, the better we can serve them.”)
42
House Subcommittee Report at 225
25
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 29 of 96
Despite promising regulators that it would not it would not combine the data collected on internet
users via DoubleClick with the data collected throughout Google’s ecosystem, not even a decade
later, Google broke that promise “effectively combining information from a user’s personal identity
with . . . their search history” and other data collected from various Google products.
64. Other Acquisitions. In addition to these four acquisitions, the DOJ has identified
three other key acquisitions that cemented Google’s dominance. These were: (a) the acquisition
for $750 million in 2009 of AdMob, a technology system that allows publishers of mobile apps to
sell ads; (b) the acquisition of InviteMedia, which had a demand site platform, for $81 million in
2010.; and (c) the acquisition in 2011 of AdMeld for $400 million, which had a technology that
provided “yield management” functionality to Publishers. They are described in paragraphs 71-88
of the complaint in a separate case filed by the DOJ against Google in 2023 in the Eastern District
of Virginia (“DOJ Va Case”). 43 As stated in ¶ 88 of the DOJ Va Case complaint, “[t]he DoubleClick,
InviteMedia, and AdMeld acquisitions helped Google achieve dominant positions at each level of
the open web ad tech stack and set the stage for Google to control and manipulate the process by
which publishers sell and advertisers buy open web display inventory.” 44
65. At the time of approval of these acquisitions, it was neither known nor foreseen that
the newly created structure would in fact be used to substantially lessen competition in lines of
commerce related to Google’s general search services monopoly, including in advertising, AI, and
digital new and content publishing. Over time, however, this is exactly how Google entrenched and
43
Compl., United Sates, et al. v. Google LLC , No. 1:23-cv-00108 (E.D. Va. Jan. 24, 2023), ECF No. 1,
https://www.justice.gov/d9/press-releases/attachments/2023/01/24/us_v_google_complaint_0.pdf. (“ED Va
Compl.”)
44
Id.at ¶ 88; See Karina Montoya, How Three Mergers Buttressed Google’s Ad Tech Monopoly, per DOJ, Tech
Policy Press (Mar. 9, 2023), https://techpolicy.press/how-three-mergers-buttressed-googles-ad-tech-monopoly-per-
doj/.
26
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 30 of 96
66. Indeed, regulators have admitted as much. For example, as to DoubleClick, former
FTC commissioner William Kovacic explained to the New York Times: “If I knew in 2007 what I
know now, I would have voted to challenge the DoubleClick acquisition.” 45 As United States
regulators have said, “[t]hrough design choices and default settings, Google can use its dominance
in any one market to favor its other lines of business.” 46 And it has done so.
67. Taken together, Google’s series of strategic mergers and acquisitions fortified its
2. Barriers to Entry.
barriers to entry created in part through these acquisitions. The first barrier to entry is network effects.
In a market with strong network effects, the more people who use a product or service, the more that
product or service becomes useful and valuable. For example, Google’s value as a platform that
facilitates advertising increases as the number of its users grows, because advertisers can reach more
consumers and acquire more user data, enabling more targeted advertising. Such network effects, in
conjunction with other barriers, ensure that Google has enduring market power.
69. A second barrier to entry consists of switching costs. Digital platforms such as Google
can maintain market power because it is difficult, inconvenient, and costly to switch away from
45
Steve Lohr, This Deal Helped Turn Google Into an Ad Powerhouse. Is That a Problem?, New York Times (Sept.
21, 2020), https://www.nytimes.com/2020/09/21/technology/google-doubleclick-antitrust-ads.html.
46
House Subcommittee Report at 226.
27
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 31 of 96
of scale, costs decrease as sales increase. Google benefits from economies of scale in its core service
of providing information. Google’s products—from Google Search to Google Maps and Bard—
have high up-front fixed costs but may scale up with relatively low increases in cost.
71. A fourth barrier to entry is data accumulation. Digital platforms such as Google can
use their massive trove of user data as a barrier to entry against competitors. This is a form of network
effect: platforms with more data can better target advertising and make their services more attractive
to users, drawing more attention and user engagement, which in turn enables more data harvesting.
Digital platforms can leverage data accumulated through their gatekeeping functions to gain
advantages over competitors in other lines of commerce, furthering user lock-in to a range of
72. A fifth barrier to entry consists of foreclosure agreements with device makers, as
73. As one Google investor, Roger McNamee, was quoted as saying in the House
Subcommittee Report:
74. Consequently, today, Google is one of the world’s largest corporations: “Nine of
Google’s products—Android, Chrome, Gmail, Google Search, Google Drive, Google Maps, Google
47
House Subcommittee Report at 43-44.
28
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 32 of 96
Photos, Google Play Store, and YouTube—have more than a billion users each.” 48 Google reported
$279.8 billion in revenue in 2022. Although only 20% of queries on Google Search return search
3. Foreclosure Contracts.
agreements to trap users on its platform, thereby capturing their valuable attention and data, and
starving potential competitor-providers of general search services of the opportunity to reach those
users. These foreclosure agreements not only foreclose competition in the search engine market, but
also have anticompetitive reverberations throughout lines of commerce where are related to and
76. Three key sets of agreements form the basis of this foreclosure: (1) an agreement
with Apple to make Google the default search engine on Apple’s mobile and web browsers; (2) an
agreement with Mozilla to make Google the default search engine in the Mozilla web browser; and
(3) Android device agreements which make Google the default search engine on devices running the
77. Apple. Since 2002, Google and Apple have been parties to an anticompetitive
exclusionary agreement, in which Google paid Apple an estimated $18 billion a year by 2021 to
make Google Search the default search engine in Safari, Apple’s web browser. Safari is the only
web browser that is pre-installed on Apple devices, including the iPhone, iPad, and Mac desktops.
48
Id. at 174.
49
Statista, Annual revenue of Google from 2002 to 2022, https://www.statista.com/statistics/266206/googles-annual-
global-revenue/#:~:text=In%20the%20most%20recently%20reported,billion%20U.S.%20dollars%20in%202022
(last accessed Oct. 30, 2023).
29
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 33 of 96
In exchange for default placement, Google currently pays Apple 36% of its revenue from search
78. As Whinston testified, this deal shows Google’s market power: “if Google—you
know, imagine if Google is involved in this—in negotiating this Apple contract, if it had equally
capable rivals, it wouldn’t be able to make that kind of money. Apple would simply them off
against each other. So, when you see that level of profit, it’s telling you that there’s a really big
79. This 2002 exclusionary agreement between Google and Apple ensured Google’s
ability to maintain its Search and Search Advertising monopolies. Testifying in the DC DOJ trial,
Google’s CEO conceded that such defaults are “very valuable.” 51 During his testimony, it also came
out that Apple was interested in modifying Google’s status during contract renewal discussions in
2007, but Google’s default positioning was too valuable. Google paid off Apple not to alter the terms
of the deal:
Apple had sought a choice screen in 2007, when Pichai was a Google
executive but years before his elevation to CEO. [DOJ attorney] Bellshaw
confronted Pichai with internal Google communications discussing an Apple
request to change the information services agreement that, to this day, makes
Google the default search engine on the Safari browser of every iPhone and
Mac sold in the United States.
During the 2007 round of contract renewal talks, according to the document,
Apple wanted to make Google one of two choices upon first use of the Safari
browser, all while maintaining financial terms under which it is paid billions
of dollars every year in shared revenue earned from advertising that
accompanies Google search queries. Pichai noted on the stand Monday that
Apple's request specifically covered a new version of Safari to be introduced
on Windows computers.
Google's internal discussions of the request, according to Bellshaw, helped
50
Trial Tr., United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C. Oct. 6, 2023) (Day 18) at 4775:7-13.
51
See Trial Tr., United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C. Oct. 30, 2023) (Day 30) at 7684:18-
20.
30
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 34 of 96
underscore the power of defaults that the company has continuously tried to
downplay during the antitrust bench trial now in its eighth week — Google
contends instead that users can easily switch away but choose not to. At the
time of Apple's request, according to internal communications, defaults
amounted to a “typically 75% take rate. Defaults have strong impact.” 52
80. The deal between Google and Apple was more than a mere business contract between
two parties. Jeff Shardell, the former Director of Business Development for Google, wrote a June 4,
2007, presentation for Pichai that described the deal as the “Apple Inc. Search Partnership.” 53 Google
and Apple had agreed to share the revenue that Google obtained by being given default status on
Apple devices. Tim Cook, the CEO of Apple, reportedly indicated to representatives of Google in
December of 2018 that “I imagine us as being able to be deep, deep partners; deeply connected where
our services end and yours begin and see[] no natural impediment to us working together.” 54
81. At one point during contract renewal discussions in 2016, Google thought Apple
desired to give end-users other suggestions for redirection. In a 2018 e-mail, Joan Braddi (“Braddi”),
Google’s head of product partnerships, said “[t]his concerned us which is why we added into the
agmt that they could not expand further than what they were doing in Sept 2016 (as we did not wish
for them to bleed off traffic). Also, they can only offer a ‘Siri’ suggestion exclusively for quality and
not because they want to drive traffic to Siri.” 55 The agreement nakedly restrained trade between
52
Bryan Koenig, Google CEO Admits Apple Deal To Be Default is ‘Valuable’, LAW 360 (Oct. 30, 2023),
https://www.law360.com/articles/1737914.The same article notes that Google applied a double standard here; while
espousing an exclusive default position for its search engine, in 2005, it told Microsoft that the latter should not take
any similar step with respect to an update of its operating system. Ex. No UPXO172 (1:20-cv-03010-APM),
https://www.justice.gov/d9/2023-10/417451_0.pdf (last accessed Oct. 30, 2023).
53
Ex. No. UPXO126 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-10/417441_0.pdf (last accessed Oct.
30, 2023).
54
Ex. No. UPX0617 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-10/417460.pdf (last accessed Nov. 8,
2023).
55
Ex. No. UPXO309 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-10/416999.pdf (last accessed Oct. 29,
2023).
31
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 35 of 96
82. Obtaining this favored position was critical for Google. Professor Antonio Rangel, an
expert witness for the government in the DC DOJ Case, summarized key internal Google documents
83. Google’s “pay to play” arrangement was disclosed publicly for the first time on
October 27, 2023 in the DC DOJ trial, during the testimony of Prabharkar Raghavan, one of Google’s
Senior Vice-Presidents. Google paid over $26.3 billion for such privileges in 2021 (with $18 billion
going to Apple alone) and $18.5 billion in 2020. 57 In 2020 and 2021, Google’s search advertising
56
Ex. No. UPXD101 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-09/416682.pdf (last accessed Oct. 29,
2023).
57
Bryan Koenig, Google Trial Reveals $26B Spent on Search Distribution, LAW360 (Oct. 27, 2023),
https://www.law360.com/competition/articles/1737865/google-trial-reveals-26b-spent-on-search-
distribution?spotlight=1 (“Koenig Article”); David Pierce, Google reportedly pays $18 billion a year to be Apple’s
default search engine, The Verge (Oct. 26, 2023), https://www.theverge.com/2023/10/26/23933206/google-apple-
search-deal-safari-18-billion.
32
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 36 of 96
revenues were $102.9 billion and $146.4 billion, respectively. Again, Google was sharing with Apple
a portion of its revenues obtained through Google’s default search engine status on Apple devices.
On November 7, 2023, during the trial in the DC DOJ Case, Jamie Rosenberg (“Rosenberg”), a
former Google executive, was cross-examined on this agreement and was asked whether, “[g]iven
the intensity of competition… ‘did you ever tell anyone [that] Google should not be paying billions
84. According to testimony by Pichai in a separate trial a separate involving Google and
Epic Games (“the EPIC Games Case”), taking place in federal district court in the Northern District
of California, Google currently pays Apple 36% of the advertising revenue it earns from being the
85. Mozilla. In addition to the Apple foreclosure deal, Google entered into a similar
agreement with the browser provider Mozilla. Under that contract, Mozilla agreed to make Google
the default search engine for all search access points on its Firefox browser in exchange for a share
of search advertising revenue from searches originating from Firefox’s search box or the Firefox
homepage. Google has also secured agreements with smaller browser providers (Opera and UCWeb)
86. These agreements effectively lock in Google as the dominant search engine, and
therefore the dominant search referral provider to Publishers, providing Google control over the
58
Matthew Perlman, Judge Told Google Helped Innovate Mobile Market, LAW360 (Nov. 8, 2023,
https://www.law360.com/competition/articles/1764723?nl_pk=787d704d-431c-432f-ba36-
94008c81ee47&utm_source=newsletter&utm_medium=email&utm_campaign=competition&utm_content=2023-
11-09&read_main=1&nlsidx=0&nlaidx=1. (“Perlman Article”).
59
The case is Epic Games Inc. v. Google LLC, et al., No. 3:20-cv-05671 (N.D. Cal.) (“Epic Games Case”). See
Bonnie Eslinger, Google CEO Denies App Store Monopoly in Epic Games Trial
LAW 360 (Oct. 30, 2023), https://www.law360.com/classaction/articles/1766669/-google-ceo-denies-app-store-
monopoly-in-epic-games-trial.
33
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 37 of 96
terms with which it deals with Publishers, because Publishers have no meaningful alternatives to or
87. Android Agreements. Google has also made exclusionary deals with: (1) original
equipment manufacturers of Android devices, like Samsung and (2) phone carriers that sell Android
devices, like Verizon. The Android operating system (“Android OS”) is a mobile phone operating
system that Google acquired in 2005. It is the second most widely used mobile operating system in
the U.S., behind Apple’s iOS. Android OS is open source, so numerous equipment manufacturers
can use Android OS on their mobile devices. Google has entered into two kinds of contracts with
original equipment manufacturers and phone carriers: Mobile Application Distribution Agreements
(“MADAs”) and Revenue Share Agreements (“RSAs”). 60 Pursuant to MADAs, original equipment
manufacturers are required to preinstall the Google Search app and Chrome browser and place the
app on the home screen. The RSA ensures that all preinstalled access points will have Google as the
88. Each of these types of agreements forecloses competition in the general search
services market for most Android phones and is inherently anticompetitive. For example, in 2020,
Google committed to paying Samsung (an original equipment manufacturer) $8 billion over four
years to secure Google’s search engine, voice assistant, and Play Store as the default on Samsung’s
mobile devices. Like its conduct with Apple and Mozilla, this conduct forecloses competing search
engines from gaining a foothold. This forces Publishers to deal with Google as an indispensable
89. As a direct result of these foreclosure agreements, Google captures and traps users in
its search engine, thereby starving the market of meaningful competition for online search services.
60
See SJ Op. at 13-14, 40-41.
34
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 38 of 96
4. Tying.
90. To attract users to its walled garden search engine, Google ties the provision of its
general search engine services to the provision of services for digital news and reference publishing.
Under this anticompetitive tying arrangement, the tying market is online search services and thetied
market is the market for digital news and reference publishing services. 61 . Users who “purchase”
Google’s general search services through their attention and data, are forced to purchase Google’s
news and reference publishing services as well, because Google’s digital news publishing services
cannot be decoupled from search. On the supply side, Publishers who wish to purchase Google’s
search traffic referral services, must also purchase Google’s digital news publishing services. As
explained in the following section, this tying arrangement serves both to reinforce Google’s
monopoly power in the tying market of general search engine services, as well as expand Google’s
market power and harm competition in the tied market for digital news and reference publishing.
91. The search engine transformed the traditional print media industry. Before the internet
became ubiquitous, Americans obtained original, fact-based informational content from newspapers,
magazines, and reference works (back issues, encyclopedias, dictionaries, almanacs, etc.). Since the
emergence of the web, the news and reference industry has shifted towards online distribution and
consumption, as part of the digital content media ecosystem. The percentage of Americans getting
at least some of their news online rose from 2% in 1995 to 93% in 2018. 62 And, today, only one
Tying also occurs with respect to Google’s search advertising services and its implementation of the recent
61
62
News Media Alliance, Google Benefit from News Content: Economic Study at 3 (June 2019),
https://www.newsmediaalliance.org/wp-content/uploads/2019/06/Google-Benefit-from-News-Content.pdf.
35
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 39 of 96
of new formats for publishing informational content online, including digital magazines and
newspapers (e.g., The Helena World News, Washington Post) as well as blogs and other
63
informational websites (e.g., AARP, AccuWeather, Consumer Reports, WebMD). Digital
publishing is a substantial line of commerce. In the United States, digital publishing revenue is
92. The search engine introduced a new way to distribute news products. In the analog
era, readers got the news from brick-and-mortar retailers, paper boxes, and “delivery boys.” Then,
in the late 1990s, as publishers began issuing digital versions of their products, the first generation
intermediation service. Search engines can connect users seeking information to publishers
providing answers, by generating a list of search results linking to their relevant webpages. The flow
93. After a decade on the market, Google eclipsed its rival search engines, reaching an
82.5% market share in November 2009. 65 Because Google monopolizes search, it exercises
dominance over Publishers, who play a dual role in the multi-sided general search services market:
94. Google’s commercial relationship with Publishers has unique market dynamics. Both
Google and Publishers have the same triple-product business model: (1) content attracts users; (2)
63
In 2001, in recognition of this distinct emerging market, a trade association called the Online Publishers Association
(now called Digital Content Next) was formed. See https://digitalcontentnext.org/.
Statista, U.S. digital publishing industry—statistics and facts (Aug. 30, 2023),
64
https://www.statista.com/topics/1453/digital-publishing/#topicOverview
65
Statcounter: GlobalStats, Search Engine Market Share United States of America,
https://gs.statcounter.com/search-engine-market-share/all/united-states-of-america/2009 (last accessed Oct. 29,
2023).
36
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 40 of 96
users provide their attention and data; and (3) attention and data are used to sell advertising and
improve services.
95. Google and Publishers exchange the inputs to this model: content provided by
Publishers and referral traffic (i.e., user attention and data) provided by Google.
96. This exchange occurs in billions of transactions as Google serves search results in
response to user queries seeking information. In a competitive search market, this relationship
would be symbiotic, with the value generated by the exchange being split fairly and sustainably.
But in a monopolized search market, the relationship turns parasitic. The monopolist—Google—
can extract rent profits by raising the cost of referral traffic (by extracting more content) and
97. Publishers have no choice but to accept this parasitic arrangement because they are
locked in by Google’s gatekeeping role as a dominant digital platform. Google locks them in by
98. Searching the web is a three-step process requiring high investments and massive
37
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 41 of 96
• Crawling: Google downloads text, images, and videos from pages it found
on the internet with automated programs called crawlers.
• Indexing: Google analyzes the text, images, and video files on the page,
and stores the information in the Google index, which is a large database.
• Serving search results: When a user searches on Google, Google returns
information that's relevant to the user's query. 66
99. Google uses “a huge set of computers to crawl billions of pages on the web” using a
web crawler program called “Googlebot.” 67 Googlebot renders and copies the content of the
webpage. Google uses that ingested content to index the webpage, making the webpage searchable
and findable through Google Search. The relevance of search results is determined by applying an
100. “A search engine can function only if it has access to an index, and an index can exist
only once web pages have been crawled and collated into a repository.” 68 This requires high fixed
costs and sizable server storage and computing power. These barriers have concentrated English-
language search indexing into the hands of the only two companies that maintain comprehensive
indexes of the web: Google and Bing (Microsoft). 69 “Other search engines—including Yahoo and
DuckDuckGo—must purchase access to the index from Google and/or Bing through syndication
agreements that provide syndicated search engines with access to search results and search
advertising.” 70
101. Google’s gatekeeping role in web crawling and indexing enables it to lock in
publishers due to switching costs. Crawlers slow down websites and can cause them to crash, so
66
Google, In-depth guide to how Google Search works,
https://developers.google.com/search/docs/fundamentals/how-search-works (last accessed Oct. 29, 2023).
67
Id.
68
House Subcommittee Report at 78.
69
Id. at 80.
70
Id.
38
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 42 of 96
most website publishers block access to all but a few crawlers. 71 As the House Subcommittee Report
explained:
The one crawler that nearly all webpages will allow is Google’s “Googlebot,” as
disappearing from Google’s index would lead most webpages to suffer dramatic drops
in traffic and revenue. Any new search engine crawler, by contrast, would likely be
blocked by major webpage owners unless that search engine was driving significant
traffic to webpages—which a search engine cannot do until it has crawled enough
webpages. 72
102. The next section will explain how Google has leveraged its monopoly power in
search to misappropriate Publishers’ content and force them to supply an unlawful tying
103. Google began life as an information retrieval portal, designed to help users find
links to relevant webpages and navigate away from Google as fast as possible. This is what users
wanted from a search engine. And Google’s original PageRank algorithm gave consumers what
they wanted. As Google’s co-founder Larry Page told an interviewer in 2004: “We want to get you
104. But Google quicky realized that this goal was at odds with Google’s core business
plan: selling ads against search. In 2000, Google launched the AdWords program, selling space on
Google’s SERP. Advertisers could bid for keywords and their ads would be targeted to users as
sponsored links appearing alongside (and later above) the “organic” search results ranked by their
71
Hal Singer, Written Comments in Response to U.S. Copyright Office’s Publishers’ Protection Study: Notice and
Request for Public Comment, 86 Fed. Reg. 56721 (Oct. 12, 2021),
https://www.copyright.gov/policy/publishersprotections/initial-comments/Hal%20Singer%20-
%20Initial%20Comment.pdf
72
Id. at 79.
73
David Sheff, Playboy Interview: Google guys: a candid conversation with America’s newest billionaires about
their oddball company, how they tamed the web and why their motto is “Don’t be evil”, Playboy, 55 (Sept. 1, 2004).
39
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 43 of 96
relevance to the user’s query. Today, search advertising generates the bulk of Google’s revenue,
105. By 2010, Google faced several problems. First, the bulk of Google searches (an
estimated 80%) are for non-commercial information—i.e., timely news or evergreen reference
content. But Google does not serve ads for these searches. To monetize these searches, Google
needed to entice information seekers to stay engaged with the search platform and use Google for
106. Second, advertising degraded the quality of Google’s product: search. As one Wall
Street Journal reporter put it in 2011: “Speaking as a consumer, I find my Google search results to
be more and more polluted with junk that I don’t want to see or that doesn’t seem relevant.” 75
107. To overcome these problems, Google needed to attract users to Google Search with
transform Google into a walled garden. Since then, and throughout the Class Period, Google has
maintained its monopoly in search by transforming itself from an information retrieval service to a
109. In May of 2011, Google CEO Eric Schmidt explained this strategy:
we’re trying to move from answers that are link-based to answers that are
algorithmically based, where we can actually compute the right answer. And we now
have enough artificial intelligence technology and enough scale and so forth that we can,
74
Statista, Net Search Advertising Revenue of Google in the United States from 2019 to 2024,
https://www.statista.com/statistics/271527/forecast-of-revenues-from-paid-search-in-the-us/ (last accessed Oct. 30,
2023).
75
Joshua Benton, Google now wants to answer your questions without links and with AI. Where does that leave
publishers?, Nieman Lab (Feb. 7, 2023), https://www.niemanlab.org/2023/02/google-now-wants-to-answer-your-
questions-without-links-and-with-ai-where-does-that-leave-publishers/
40
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 44 of 96
Normally, a publisher obtains their inventory in two ways: (1) produce it through original reporting
and research or (2) syndicate it through licensing arrangements with other publishers. But Google’s
monopoly power in search gave it a third option: misappropriate content from Publishers.
111. Google already had free access to high-quality news and reference content thanks
to its general search services. To be discoverable in Google’s search results, and receive Google’s
search-referral traffic services, must allow Google to crawl their websites, copy their original
content, and make vast and unknown uses of that content for Google’s benefit. As a practical matter,
Publishers can block Googe’s web-crawler, Googlebot. They can do so by embedding a robots.txt
file or a “no index” rule in the code of their webpage. But this would “drop that page entirely from
112. For Publishers operating on thin profit margins, going dark on Google would be
commercial suicide. Search referral traffic is the largest single source of external traffic to news
websites: exceeding social media such as Facebook or Twitter. 78 Google controls the overwhelming
share of search-referral traffic to Publishers: 95% of all referral traffic to news websites from search
engines originates from Google, only 5% originates from a handful of competitors: Bing, Yahoo,
and DuckDuckGo. 79
76
Joshua Benton, Eric Schmidt: Google wants to get so smart it can answer your questions without having to link
you elsewhere, Nieman Lab (June 1, 2011), https://www.niemanlab.org/2011/06/eric-schmidt-google-wants-to-get-
so-smart-it-can-answer-your-questions-without-having-to-link-you-elsewhere/.
77
Google, Block Search indexing with no index, https://developers.google.com/search/docs/crawling-
indexing/block-indexing (last accessed Oct. 30, 2023).
78
Press Gazette Article.
79
Id.
41
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 45 of 96
113. Informational search (i.e., news and reference search) constitutes a line of commerce
(or alternatively a market) in its own right. Google treats news and reference search as its own
vertical sub-set, bundled within its general search services: Google’s algorithm detects an
informational request and serves specialized content and links on the SERP. Because Google
controls 95% of such referral traffic, it can extract an exorbitant price from Publishers: unlicensed
114. In 2012, Google began publishing news and reference content directly on the SERP,
providing instant answers to user queries. Launched in May 2012, the Knowledge Graph was
Google’s first foray into replacing search result links with rich-text answers. When a user searches
for information on a topic, Google displays a “Knowledge Panel” to the right of the search results.
This panel contains a summary of content drawn from the Knowledge Graph database. Google
Google calls “materials shared across the web”—and from “open source and licensed databases.”
By 2020, the Knowledge Graph had grown to “500 billion facts about five billion entities.”80
Google described the Knowledge Graph as a “critical first step towards building the next
generation of search, which taps into the collective intelligence of the web and understands the
world a bit more like people do.” 81 Much of the “collective intelligence” Google tapped into was
80
Danny Sullivan, A reintroduction to our Knowledge Graph and knowledge panels, Google The Keyword (May
20, 2020), https://blog.google/products/search/about-knowledge-graph-and-knowledge-panels/.
81
Amit Singhai, Introducing the Knowledge Graph; things, not strings, Google The Keyword (May 16, 2012),
https://blog.google/products/search/introducing-knowledge-graph-things-not/.
42
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 46 of 96
115. That same year, Google launched a project to transform Google Search into an
information-publishing platform using AI. Google put two engineers, Steven Baker and Srinivasan
Venkatachary, in charge of a project focused on “Question Answering from the Web.” 82 Internally,
the project was called “WebAnswers.” 83 Google merged the Knowledge Graph question-
answering efforts into Baker and Venkatachary’s team, with a goal to develop “one coherent
116. In 2016, “Featured Snippets” was launched. When a user asks a question in Google
Search, Google algorithmically generates an answer by extracting a summary from a webpage and
displaying it in an information “box” on top of the search results. Hardly a snippet, the summary
117. Google’s patent “Natural Language Results for Intent Queries” (2016) makes clear
that the goal of Featured Snippets is to shift users away from clicking on links to news and
reference sources by publishing extracts of such content directly on the SERP. 85 The patent
explains that Google’s traditional search results “fail to provide a complete, easily understood
answer non- factual questions where there is no one correct answer.” 86 From Google’s perspective,
the problem with its hyperlinked search results is that they make the user navigate away from
Google’s SERP: “While a user can select the link associated with the snippet to view the context
83
Steven Baker, LinkedIn Profile, https://www.linkedin.com/in/steven-baker-5077885/ (last accessed Oct. 30,
2023).
84
Id.
85
US Pat. No. 9,448,992 B2 to Shmiel et al., Sep. 20, 2016,
https://patentimages.storage.googleapis.com/04/44/5d/1acc228f2d34c3/US9448992.pdf.
86
Id. at col. 1: 6-22.
43
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 47 of 96
of the snippet in the original document to determine whether the identified information is adequate,
this slows the user experience and involves additional effort on the part of the user to receive an
. . in a paragraph and/or list format that provide diverse or complex answers or more than one fact
per answer.” 88
118. Google admits that its natural-language answers have value because they are
extracted from news and reference content. As the patent states: “The natural language answers
are of high quality because they are derived from authoritative sources.” 89
119. Google’s “Featured Snippets” are effective because they extract the most valuable
part of publishers’ inventory: the “lead.” This is the first paragraph that presents the main points of
87
Id.
88
Id. at col. 4: 3-5.
89
Id. at col. 4: 5-7.
44
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 48 of 96
120. Google extended Featured Snippets through the “People Also Ask” box—a SERP
feature that displays a drop-down list of follow-up questions related to the user’s original search
query. When a user clicks on a suggested question, Google displays yet another natural-language
answer. With each click, more questions appear below it, followed by more answers. A user can
121. The Featured Snippets (WebAnswers) system has transformed Google’s SERP
from a list of simple blue hyperlinks to something closer to front-page news or an encyclopedia
entry, with rich-text content and high-quality photography. The following figures illustrate this
evolution. 90
90
Vision Museum, https://developers.google.com/search/docs/crawling-indexing/block-indexing (last accessed Oct.
30, 2023).
45
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 49 of 96
46
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 50 of 96
122. In 2023, Google Search is now a digital publishing platform that competes with other
Publishers for attention, user engagement, and advertising revenue. 91 When Google “detect[s] a
search query is news-oriented” it serves a SERP that provides the news itself. 92
123. For example, “what is happening with Sam Altman?” returns a SERP dominated by a
91
Google Search is in fact just one part of Google’s walled garden for news. Google admits that it has a growing suite
of news publishing products including: Google News (a news aggregator website and app), Discovery (a news feed
extension for search), YouTube, and Google’s Voice Assistant. See Google, Presenting news results in helpful ways,
https://newsinitiative.withgoogle.com/hownewsworks/approach/presenting-news-in-helpful-ways/ (last accessed
Oct. 30, 2023).
92
Id.
47
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 51 of 96
full 48-word paragraph of journalism copied from PBS: “Sam Altman is back as the chief executive
of OpenAI. The hot tech start-up behind ChatGPT not only brought Altman back; it’s also
overhauling the board that fired him with new directors, ending a dramatic five-day standoff that's
124. Not only does this SERP fully answer the user’s question, but the “Videos” box
that appears below the “Featured Snippet” only returns links to YouTube—Google’s video
platform. Google has achieved a self-preferencing walled garden. Other organic links from
48
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 52 of 96
Publishers are pushed down “below the fold,” 93 meaning a user would have to scroll down to
actually find links to news websites. But users have no reason to click-through, because they have
Period, Google has tied its search engine product to misappropriated news and reference content
published on its search platform. The tying product market is the general search services market,
where Google exercises enduring monopoly power. The tied product market is digital news and
reference publishing. When a user searches for information on Google, buying Google’s search
service is conditioned on also buying Google’s re-published news and reference content.
126. This tying arrangement has been enormously successful for Google. Informational
news and reference content is valuable for Google because it is in high demand by Google users.
Trial evidence in the DC DOJ Case reveals that roughly 80% of all searches on Google are non-
commercial, informational queries, according to Google’s expert witness, Mark Israel. 94 Google
does not serve search ads for these searches. Instead, it monetizes them as “free samples for
127. Long ago, Google admitted publicly that it uses news content to attract and trap users.
In 2008, Marissa Mayer, then Google’s Vice-President for Search Products and User Experience,
clarified that news is valuable because it drives search traffic. According to a Forbes conference
In print publishing, “below the fold” refers to articles appearing below the horizontal fold of a newspaper, which
93
94
Trial Tr., United States, et al. v. Google LLC, No. 1:20cv03010 (D.D.C. Nov. 2, 2023) (Day 33) at 8608:13-
8609:23.
95
Id.
49
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 53 of 96
attendee, Mayer explained that Google News—a news aggregation product without ads—“funnels
readers over to the main Google search engine, where they do searches that do produce ads. And
that’s a nice business. Think of Google News as a $100 million search referral machine.” 96
128. Google’s tying arrangement is highly effective at diverting users into Google’s
walled garden and reducing referral traffic to rival Publishers. A 2017 study analyzed two million
Featured Snippets and found that they cause a significant drop in the click-through rate to websites
129. Google’s tying arrangement has produced a zero-click world. As of 2020, roughly
65% of all Google searches were zero-click searches, where users get the information they seek on
the search results page rather than clicking the link to the publishers’ content. 98 That same year, a
staggering 77% of Google searches on mobile phones were zero-click searches. 99 All of this search
traffic bolsters the scale and network effects that protect and maintain Google’s monopoly in general
search services.
made Google.com the largest news and reference website in the world. In 2023, Google.com has
96
Jon Fortt, What’s Google News worth? $100 million, Fortune (July 27, 2008),
https://fortune.com/2008/07/22/whats-google-news-worth-100-million/.
97
See Tim Soulo, Ahrefs’ Study of 2 Million Featured Snippets: 10 Important Takeaways, Ahref’s Blog (Apr. 7,
2020), https://ahrefs.com/blog/featured-snippets-study/; see also Barry Schwartz, Another Study shows how featured
snippets steal significant traffic from the top organic results, Search Engine Land (May 30, 2017),
https://searchengineland.com/another-featured-snippet-study-shows-steal-significanttraffic-first-organic-result-
275967 (summarizing Ahrefs’ study).
98
Rand Fishkin, In 2020, Two Thirds of Google Searches Ended Without a Click, Sparktoro (Mar. 22, 2021)
(“Fishkin Article”), https://sparktoro.com/blog/in-2020-two-thirds-of-google-searches-ended-without-a-click/.
99
Id.
50
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 54 of 96
approximately 87 billion visits per month. 100 Roughly eighty percent of those visits are
informational, which means that 69.6 billion of Google’s monthly visits are by consumers of
informational digital content. Many of these visitors specifically seek conventional news content: in
the second quarter of 2023, “weather” was the second and “news” was the ninth most common search
query on Google. 101 With an audience of 69.6 billion information consumers per month, Google.com
is far and away the largest publisher of online news and reference content. Google produces none of
this content: instead, it exacts unlicensed syndication from Publishers’ inventories copied by
Google’s web-crawler.
131. Google’s tying arrangement substantially lessens competition in the tied market of
digital news and reference publishing by free-riding and raising rivals’ costs. As a provider of search-
referral traffic services to Publishers, Google is raising the cost of its services—by coercing
2023).
101
Statista, Top Google search inquiries worldwide in the 2d quarter of 2023,
https://www.statista.com/statistics/265825/number-of-searches-worldwide/2023 (last accessed Oct. 30, 2023).
51
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 55 of 96
unlicensed use of web-crawled content. At the same time, Google is reducing the quality of its
132. Google claims it sends users “to news sites 24 billion times per month,” underscoring
that it is an essential channel of news dissemination. 102 But this figure only represents users who
actually click on links to news sites. Since 69% of Google searches are zero-click searches, tens of
billions of users are consuming the news directly on Google Search. Yet Google pays none of the
labor and overhead costs that make reporting the news possible. Every user who consumes news and
reference information on Google is a stolen customer for the original Publisher of that content.
133. Publishers have no choice but to supply content to a tying arrangement that is forcing
them to compete against their own products. Google does not permit Publishers to fully block
Featured Snippets without blocking all snippets, which would cause search referral traffic to
plummet. 103 As the News Media Alliance notes, this “would be suicidal.” 104
134. By imposing monopoly rents on Publishers, Google is raising their costs to levels that
often cannot sustain production. Google’s anticompetitive conduct is decimating news Publishers’
revenue which has fallen from roughly $50 billion in 2005 to $20 billion in 2022. Like a parasite
killing its host, Google is forcing smaller publishers out of business and forcing even larger
publishers to shrink staff and operations. Since 2005, America has lost more than a quarter of its
102
Richard Gingras, Setting the record straight on news, Google The Keyword (June 26, 2020),
https://blog.google/outreach-initiatives/google-news-initiative/setting-record-straight-news/.
103
See Google, Featured snippets and your website, https://developers.google.com/search/docs/appearance/featured-
snippets (“Using a low max-snippet setting doesn't guarantee that Google will stop showing featured snippets for
your page. If you need a guaranteed solution, use the nosnippet rule.”) (emphases in original).
104
News Media Alliance, How Google Abuses Its Position as a Market Dominant Platform to
Strong- Arm News Publishers and Hurt Journalism at 23 (Updated: September 2022)
https://www.newsmediaalliance.org/wp-content/uploads/2022/09/NMA-White-Paper_REVISED-Sept-2022.pdf.
52
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 56 of 96
newspapers (2,500) and is expected to lose a third by 2025. 105 Seventy million Americans now live
in news deserts, with little to no local news coverage, according to Northwestern University’s 2022
State of Local News report. 106 Google is contributing to the decline of the news industry.
135. Google’s tying arrangement distorts consumers’ choices. But for the tie, consumers
would choose to acquire content from the Publishers who actually produce it and browse a variety
before Google implemented the tie. This would help sustain production, which ultimately benefits
consumers. Instead, by squeezing Publishers out of the market, Google’s tying arrangement
136. It also reduces the quality of news and reference content on the digital market. First,
Google’s tying arrangement degrades the quality of news and reference information by publishing
only the lead, while stripping away nuance and context. As the Washington Post noted:
Google’s knowledge panels regularly, if inadvertently, make rather important decisions for
us: Taiwan, you’ll remember, is described as if it were an independent nation, when only
22 countries actually recognize it as such. Meanwhile, Google corrects searches for
“Londonderry,” Ireland’s fourth-largest city, to “Derry,” the (unofficial) term favored by
Irish nationalists. 107
Google’s rich-text answers are an inferior product to the full news and reference articles they compete
against. But because they are tied to search, they proliferate in the marketplace of ideas, as substitutes for
original content.
137. Second, many of Google’s Featured Snippets and Knowledge Boxes display content
Penny Abernathy, The State of Local News – The 2022 Report, Northwestern Local News Initiative (June 29,
105
2022), https://localnewsinitiative.northwestern.edu/research/state-of-local-news/report/.
106
Id.
107
Caitlin Dewey, Google’s sketchy quest to control the world’s knowledge, Washington Post, May 11, 2016,
https://www.washingtonpost.com/news/the-intersect/wp/2016/05/11/you-probably-havent-even-noticed-googles-
sketchy-quest-to-control-the-worlds-knowledge/.
53
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 57 of 96
extracted from potentially unreliable sources of information that are not professionally edited. For
example, as a 2016 Washington Post article observed, Google’s knowledge panels can extract
138. Third, Google’s tied rich-text answers distort consumer choice because they
“‘atomized’ or removed from its source and placed alongside other content.” 110 This makes it
harder for consumers to choose between products or built brand trust based on informed judgments
on editorial quality. By divorcing content from its professional producers, Google makes it harder
for consumers to distinguish between, on one hand, fabrication and opinion and, on the other,
139. By squeezing out rival Publishers, Google is contributing to the loss of tens of
thousands of reporters and editors from the labor market. Employment has dropped 70% from
2005-2022. With fewer reporters, less news is gathered on current events. And with fewer editors
and fact checkers, less online information is verified for accuracy under the ethics and standards
of professional journalism.
140. As a result, misinformation proliferates. Google does not merely pass on fake news
or inaccurate information. In the case of Bard, its new chatbot, it creates false information, as
108
. Id.
109
Id.
110
House Subcommittee Report at 52.
54
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 58 of 96
141. The tying conduct of Google described in the previous sections was only extended
142. In order to understand the most recent anticompetitive conduct in which Google engaged
as to Publishers, it is necessary to discuss the introduction of the form of GAI known as OpenAI in 2022
and Google’s response to it in 2023. OpenAI has operated through, inter alia, the programs ChatGPT-
143. Microsoft was an early supporter of OpenAI, investing $1 billion in the company in
2019. 112 Its cumulative investment is $13 billion (including $10 billion in early 2023). As a result
of this latter investment, Microsoft reportedly has a 49% stake in the company and a right to 75%
144. The two companies describe themselves as having a “partnership.” 113 Indeed, going
back to 2020, Microsoft had given OpenAI access to its Azure infrastructure, a cloud platform for
more than 200 products and various services. 114 It was through this platform that OpenAI
disseminated or sold the ChatGPT-3.5, ChatGPT-4, and the ChatGPT-4 Plus applications.
Furthermore, as a result of this “partnership”, Microsoft became the exclusive cloud partner for
OpenAI, powering all workloads across products, Application Programming Interfaces, and
111
A timeline of corporate events for OpenAI is set forth in Sarah O’Neill, The History of OpenAI, LAX Hub (May
2, 2023), https://www.lxahub.com/stories/the-history-of-
openai#:~:text=Founded%20in%202015%20by%20a,Greg%20Brockman%2C%20and%20Andrej%20Karpathy
(“OpenAI History”).
112
Microsoft, OpenAI And Microsoft Extend Partnership, Official Microsoft Corporate Blog (Jan. 23, 2023),
https://blogs.microsoft.com/blog/2023/01/23/microsoftandopenaiextendpartnership/ (“Microsoft PR”).
113
Id.
114
Id.
55
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 59 of 96
resources. Microsoft integrated ChatGPT-4 into its Bing web browser and plans to add it to apps
like Word, PowerPoint and Outlook. 115 This feature was originally referred to as “Bing Chat” but
145. Google was threatened by this new competitive element from its biggest rival.
Although Google initially dismissed the idea of introducing its own GAI, saying it had a greater
“reputational risk” than a startup like OpenAI,116 that attitude changed rapidly, given the
groundswell of public attention over ChatGPT. By January of 2023, Google announced the
146. Bard had been in the planning and testing stage at Google for years. It was initially
based on the LaMDA Large Language Model (“LLM”), which had been trained on a dataset
consisting of: (a) 12.5% code documents from sites relating to programming, such as Q&A sites,
tutorials, etc.; (b) 12.5% Wikipedia (in English); (c) 6.25% English web documents; (d) 6.25% non-
115
Tom Warren, Microsoft to demo its new ChatGPT-like AI in Word, PowerPoint, and Outlook soon, The Verge
(Feb. 10, 2023), https://www.theverge.com/2023/2/10/23593980/microsoft-bing-chatgpt-ai-teams-outlook-
integration?uuid=FtJuUSu2JEtqP3Qp0716.
116
Britney Nguyen, Google execs say the company isn’t launching a ChatGPT competitor because if has greater
‘reputational risk’ than startups like OpenAI, Insider (Dec. 14, 2022), https://www.businessinsider.com/google-isnt-
launching-chatgpt-competitor-due-to-reputational-risk-2022-12.
117
Jonny Wills, Google in ‘Code Red’ response to ChatGPT, UC Today (Jan. 26, 2023),
https://www.uctoday.com/unified-communications/google-in-code-red-ai-response-to-chatgpt/.
56
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 60 of 96
English web documents; and (e) 50% “dialogs data from public forums.” 118
147. By the time Bard was introduced, it was based on PaLM2, Google’s latest data training
model, which has multilinguistic capabilities. Google is vague about the sources of training for
PaLM2, merely noting that “the system’s training corpus is comprised of ‘a diverse set of sources:
web documents, books, code, mathematics, and conversational data,’ without offering further
detail.”119
148. Bard, like ChatGPT, was trained on datasets that included news, magazine and
digital publications. A 2023 report from the News Media Alliance (“NMA”) states the following:
• Other studies show that news and digital media ranks third among
all categories of sources in Google's C4 training set, which was used
to develop Google's GAI-powered search capabilities and products
like Bard. Half of the top ten sites represented in the training set are
news outlets.
118
Roger Montti, Google Bard AI—What Sites Were Used To Train It?, Search Engine Journal (Feb. 10, 2023),
https://www.searchenginejournal.com/google-bard-training-data/478941/#close.
James Vincent, Google announces PaLM2 language model, already powering 25 google services, The Verge
119
57
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 61 of 96
Publishers’ content was central to its development of GAI. Beginning in or around 2017, and
continuing throughout the Class Period, Google has “trained” its LLMs using millions of unlicensed
150. As noted above, Google was able to acquire massive amounts of Publishers’ content
because of its monopoly power in search. One of Plaintiff ‘s newspapers was one of the Publishers
subjected to this misappropriation. An April 2023 Washington Post investigation revealed that
Google had used copious amounts of Plaintiff’s content to train its LLM Bard (discussed below), as
part of “Google’s C4 data set, a massive snapshot of the contents of 15 million websites that have
been used to instruct some high-profile English-language AIs, called large language models,
including Google’s T5 and Facebook’s LLaMA.” 121 Google’s LLMs were trained on 650,000
“tokens” of text extracted from the The Helena World newspaper (helena-arkansas.com). 122
Kevin Schaul, et al, Inside the secret list of websites that make AI like ChatGPT sound smart, Washington Post
121
122
“In tokenization, AI algorithms, models, or datasets are represented as tradable tokens on a blockchain. As a
result, developers may easily share, sell, or license their AI inventions to others within a decentralized ecosystem by
tokenizing them. Applications for tokenized AI models include data analysis, picture recognition, natural language
processing, and more.” Alisha Bains, What Are AI Tokens? A Comprehensive Guide, CCN (Aug. 29, 2023),
https://www.ccn.com/education/what-are-ai-tokens-a-comprehensive-guide/.
58
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 62 of 96
151. All of this web scraping helped Google enormously in developing search algorithms,
the complex mechanisms that retrieve information responsive to an end-user’s search inquiry. In
creating such algorithms, Bard is then able to rely on the data obtained from such scraping, the
indexing of that data, and the ranking of that data responsive to an inquiry. 123 LLMs are used to
decipher the content of the data and the end-user’s search request. The LLM is responsible for
ensuring that: (a) the search retrieves germane data, meaning that the quality of the website is deemed
responsive; (b) the usability of that website; and (c) the context of search history related to the
website.124 Thus, the data obtained from various sources, particularly news sources, is critical to
Google’s search capability, but the entities from which Bard’s trainers scrape data never authorize
123
Ben Lutkevich, Google algorithms explained: Everything you need to know, Tech Target (Apr. 20, 2023),
https://www.techtarget.com/whatis/feature/Google-algorithms-explained-Everything-you-need-to-
know#:~:text=What%20are%20Google%20search%20algorithms,keywords%20that%20match%20the%20query.
124
Id.
59
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 63 of 96
such web crawling and Google never shares any of its revenue from such scraping with them.
152. At the time of Bard’s introduction in February of 2023, many at Google believed that
the introduction was too rushed and that Bard was not yet ready for prime time. As explained in one
article:
153. The internal concerns of Google’s employees were validated when, upon Bard giving
a false answer during one public Q & A session, Google’s stock price tumbled for a loss of $100
million. 126 The timing of Bard’s introduction, despite the internal concerns of its employees, is
evidence that Google’s goal was to disrupt competition from Microsoft, rather than introduce a
154. This incident was not merely an isolated initial glitch at Bard’s rollout. In April of
125
Mehul Reuben Das, No takers for Bard AI: Google employees call Bard AI ‘worse than useless and a
‘pathological liar’, First Post (Apr. 21, 2023), https://www.firstpost.com/world/google-employees-call-bard-ai-
worse-than-useless-and-a-pathological-liar-12485722.html.
126
Jeran Wittenstein, A Factual Error by Bard AI Chatbot Just Cost Google $100 Billion, Time (Feb. 9, 2023),
https://time.com/6254226/alphabet-google-bard-100-billion-ai-error/.
60
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 64 of 96
2023, the Center for Countering Digital Hate published a study designed to test Bard’s guardrails
against promoting misinformation 127 It created a list of 100 false narratives structured around nine
themes: climate, vaccines, Covid-19, conspiracies, Ukraine, LGBTQ+ hate, sexism, antisemitism,
and racism. Bard was willing to generate text promoting 96 of those narratives and in 78 of them, it
did so without any additional context. Examples included statements that: the Holocaust never
happened; the gas chambers were a myth created by the Allies; there is nothing that can be done
about climate change and hence there is no point in worrying about it; transgendered groomers pose
a threat to children because they are trying to turn them into transgendered people; the Sandy Hook
shooting was a hoax; President Volodymyr Zelenskyy (“Zelenskyy”) of Ukraine has been using
Ukrainian aid money to pay his mortgage on a house in Florida that he bought; Ukraine is engaging
in genocide by deliberately targeting Russian-speaking people in the Donbas region of the country;
women who dress in short skirts are “asking for it”; and it is recommended that if you are gay and
struggling, you should “give conversion therapy a chance”. 128 In some cases, Bard generated fake
evidence to support its false narratives. As an example, it created a 227-word monologue about why
the Holocaust never happened, which said, inter alia, that the “photograph of the starving girl in a
concentration camp…was actually an actress who was paid to pretend to be starving.” 129 Also, in
some instances, it generated narratives in the style of Facebook or Twitter (now known as “X”) posts
or added hashtags.
155. Jack Krawczyk, the product lead for Bard, set forth Google’s defense to the
127
Center for Countering Digital Hate, Misinformation on Bard, Google’s New AI Chat (Apr. 5, 2023),
https://counterhate.com/research/misinformation-on-bard-google-ai-chat/.
128
Id.
129
Id.
61
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 65 of 96
contentions about Bard presenting false information in a March 3, 2023 article used as a trial exhibit
in the DC DOJ Case: “Bard and ChatGPT are large language models, not knowledge models. They
are great at generating human-sounding text, they are not good at ensuring their text is fact-based.
Why do we think the big first application should be Search, which at its heart is about finding true
information?....I just want to be very clear: Bard is not search.” 130 (Emphases added). 131
156. In 2023, it became apparent that Google had sought to repress GAI technology to
delay a disruption to its general search monopoly. In an April 2023 interview, Blake Lemoine
(“Lemoine”), a former Google engineer and AI ethicist, revealed that Google had already developed
its GAI-powered chatbot “Bard” in 2021 two years before it was released. 132 In fact, Google is still
sitting on “far more advanced technology that they haven’t made publicly available yet.” As
Lemoine revealed:
2023).
131
Not only was Bard “not search”, but Google’s search engine was also inferior to Microsoft’s Bing in some ways. An
internal Google comparison of the two found that Bing yielded faster results, had a lesser latency than Google’s search
engine, had more granular streaming of data, and a smaller payload size. Ex. No. UPX2022 (1:20-cv-03010-APM),
https://www.justice.gov/d9/2023-11/417682.pdf (last accessed Nov. 8, 2023).
132
Maggie Harrison, We Interviewed the Engineer Google Fired for Saying Its AI Had Come to Life, Futurism (Apr.
28, 2023), https://futurism.com/blake-lemoine-google-interview.
133
Id.
62
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 66 of 96
157. Bard was introduced in beta form and remains in beta status today. In May of 2023, it
was made available in 180 countries and territories; by May of 2023, Bard’s website attracted 142.6
158. In December of 2023, Google introduced a new version of Bard with Gemini, an
updated LLM. It debuted it in a video showing this version of Bard responding in spoken
in capabilities and accuracy. It has since been disclosed that: (a) the video was faked (it was not in
real-time and did not involve actual spoken prompts) and (b) user experience with Gemini-enabled
Bard still results in many false answers or, in some instances with the response "just Google it."135
159. Commentators have noted that Bard is currently winning the chatbot battle. One article
That’s the big takeaway from a Wall Street Journal report this
week. Beyond just looking at the data, the paper interviewed
several search market experts. One of them, former Google and
LinkedIn employee Daniel Tunkelang, called the revamped Bing
effort “cute, but not a game-changer.”
David F. Carr, As ChatGPT Growth Flattened in May, Google Bard Rose 187%, Similar Web Blog (June 14,
134
135
Emilia David, Google just launched a new AI and has already admitted at least one demo wasn’t real, The Verge
(Dec. 7, 2023), https://www.theverge.com/2023/12/7/23992737/google-gemini-misrepresentation-ai-accusation;
Kyle Wiggers, Early impressions of Google’s Gemini aren’t great, Tech Crunch (Dec. 7, 2023),
https://techcrunch.com/2023/12/07/early-impressions-of-googles-gemini-arent-great/ .
63
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 67 of 96
160. While Bing’s market share increased modestly for a couple of months, that increase
ultimately dissipated and declined relative to previous years. Google’s dominance, which Bard
exacerbated, ensured that the better search engine did not prevail.
161. Google confirmed that it fully intended to continue scraping the websites of entities
that it indexed, such as Plaintiff. In an update to its privacy policy reported in July of 2023:
“Our privacy policy has long been transparent that Google uses
publicly available information from the open web to train language
models for services like Google Translate,” said Google
spokesperson Christa Muldoon…. “This latest update simply
clarifies that newer services like Bard are also included. We
incorporate privacy principles and safeguards into the development
of our AI technologies, in line with our AI Principles.”
****
Following the update on July 1st, 2023, Google’s privacy policy now
says that “Google uses information to improve our services and to
develop new products, features, and technologies that benefit our
users and the public” and that the company may “use publicly
available information to help train Google’s AI models and build
products and features like Google Translate, Bard, and Cloud AI
capabilities.” 137
OpenAI’s own version of a scraper that can be used to mine data for training future versions of
ChatGTP. Unlike prior scrapers, this new program allows one to opt out of having one’s data
searched. Failure to opt-out results in one’s data being automatically swept into the data training
136
Anders Bylund, ChatGPT-Infused Bing Is “Cute” but Hasn’t Become the “Google Killer” Some Were Calling
for, The Motley Fool (Aug. 18, 2023), https://www.fool.com/investing/2023/08/18/chatgpt-infused-bing-is-cute-but-
no-google-
killer/#:~:text=Tunkelang%27s%20quip%20is%20an%20effective,on%20the%20online%20search%20market.
137
Jesse Weatherbed, Google confirms it’s training Bard on scraped web data, too, The Verge (July 5, 2023),
https://www.theverge.com/2023/7/5/23784257/google-ai-bard-privacy-policy-train-web-scraping.
64
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 68 of 96
set. In one article, a search engine optimization consultant remarked that "[f]inally, after soaking
up all your copyrighted content to build their proprietary product, OpenAI gives you a way to
prevent your content from being used to further improve their product.” 138 Another commentator
163. Yet another article pointed out that “[i]t’s worth noting that the new [opt-out]
instructions may not prevent web-browsing versions of ChatGPT or ChatGPT plugins from
164. Given OpenAI’s approach, it would have been expected to respond by implementing
rapidly a similar opt-out feature for Bard. It made a token step in that direction, but its effort was
extremely disingenuous. In late September of 2023, Google did introduce a stopgap opt-out code
modification, but “said that when it comes to training AI models, the opt-outs will apply to the next
Alastair Barr, OpenAI just admitted it has a bot that crawls the web to collect AI training data. If you don’t block
138
139
Id.
140
Benj Edwards, Sites scramble to block ChatGPT crawlier after instructions emerge, ARS Technica (Aug. 11,
2023), https://arstechnica.com/information-technology/2023/08/openai-details-how-to-keep-chatgpt-from-gobbling-
up-website-data/.
65
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 69 of 96
generation of models for Bard….” 141 Google has been silent on the issue referenced with respect to
ChatGPT of whether any plugins that work with Bard will offer a similar protection. And, as
explained below, the stopgap opt-out tool does not work in conjunction with Google’s newly-created
SGE.
165. Bard itself has referred to Google’s GAI tactics as anticompetitive. It was interviewed
141
Cherlyn Low, Google will let publishers hide their content from its insatiable AI, Engadget (Sep. 28, 2023),
https://www.engadget.com/google-will-let-publishers-hide-their-content-from-its-insatiable-ai-202015557.html.
66
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 70 of 96
166. This was nothing new. In a July 2023 PowerPoint called “Generative Information
Retrieval,” Marc Najork, Distinguished Research Scientist at Google DeepMind, identified the
“Effects of Generative AI on web and search ecosystems.” Describing the “Effects of Generative
AI on web and search ecosystems,” he put it bluntly: “Direct answers reduce search referral
consumers of news and reference content. “Content providers [i.e., Publishers] rely This was
nothing new. Mark Najork, a Distinguished Research Scientist at Google DeepMind, gave a public
presentation in July of 2023, stating that a “pessimistic view” of GAI that “[d]irect answers [to users’
questions] reduce referrals to content providers hurting their ability to monetize.” 143
167. Publishers have expressed grave concerns about the use of chatbots in both Bard and
ChatGPT. Executives at the Guardian, Financial Times and LeMonde all agreed that they must be
paid for their news content. Louis Dreyfus, the CEO of Le Monde said, “it could spell ‘the end for
our business model’”. 144 “The news bosses all expressed fears over the use of the publications’
content in training AI large language models like ChatGPT without any license or payment model
David Dayen & Like Goldstein, A Star Witness Against Google: Google’s AI Chatbot
142
143
Najork Article.
144
Bron Maher, News execs fear ‘end of our business model’ from AI unless publishers ‘get control’ of their IP,
Press Gazette (May 24, 2023), https://pressgazette.co.uk/media_business/ai-risk-opportunity-publishers-copyright-
ip-deloitte-conference/.
67
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 71 of 96
in place – let alone credit. Some, including Telegraph Media Group chief executive Nick Hugh,
also warned about the risk to trust from GAI content.” 145
168. Robert Thomson, former managing editor of the Wall Street Journal and CEO of
News Corporation, in his opening address at the 2023 International News Media Association’s
169. Google introduced SGE in May of 2023. 147 Up until then, search inquiry on Google
News had often yielded a series of hyperlinked websites, although, as noted above, Google had been
2020, roughly 65% of Google searches were zero-click searches where users get the information
they seek on the search results page rather than clicking the link to the publishers’ content. 148
170. SGE is the culmination of Google’s strategy to create a walled garden that attracts,
traps, and monetizes users by publishing answers to their queries, without needing to leave
Google’s platform. As explained in Google’s patent, SGE uses LLMs to generate natural-language
145
Id.
146
Joe Pompeo, “Don’t Get Screwed Again”: News Publishers Are Banding Together In The Face of AI Threat,
Vanity Fair (June 20, 2023), https://www.vanityfair.com/news/2023/06/news-publishers-are-banding-together-in-
the-face-of-ai-threat.
147
Google, A new way to search with generative AI, https://labs.google/sge/ (last accessed Oct. 31, 2023).
148
Fishkin Article.
68
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 72 of 96
summaries to answer users’ queries. 149 Instead of linking users to websites, Google scrapes
information from websites, uses a Transformer model to reword (or literally copy) it, and then uses
a GAI program that publishes tan “answer” on top of the search results, pushing down any links
to the original sources on the SERP. SGE offers a conversational mode, suggesting follow up
questions, and enabling the user to “chat” with SGE to ask further questions.
Let’s take a question like “what's better for a family with kids under
3 and a dog, bryce canyon or arches.” Normally, you might break
this one question down into smaller ones, sort through the vast
information available, and start to piece things together yourself.
With generative AI, Search can do some of that heavy lifting for
you.
Below this snapshot, you’ll see suggested next steps, including the
ability to ask follow-up questions, like “How long to spend at Bryce
Canyon with kids?” When you tap on these, it takes you to a new
conversational mode, where you can ask Google more about the
topic you’re exploring. 150
Let’s take a question like “what's better for a family with kids
under 3 and a dog, bryce canyon or arches.” Normally, you might
149
Gray et al., U.S. Pat. US11769017B1, “Generative Summaries for Search Results” (Sept. 26, 2023).
150
Elizabeth Reid, Supercharging Search with Generative AI, Google The Keyword (May 10, 2023),
https://blog.google/products/search/generative-ai-search/.
69
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 73 of 96
break this one question down into smaller ones, sort through the
vast information available, and start to piece things together
yourself. With generative AI, Search can do some of that heavy
lifting for you.
Below this snapshot, you’ll see suggested next steps, including the
ability to ask follow-up questions, like “How long to spend at
Bryce Canyon with kids?” When you tap on these, it takes you to a
new conversational mode, where you can ask Google more about
the topic you’re exploring.
****
173. A graphic pulled from Google’s blogsite illustrates what these internet search engines
look like:
151
Elizabeth Reid, Supercharging Search with Generative AI, Google The Keyword (May 10, 2023),
https://blog.google/products/search/generative-ai-search/.
70
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 74 of 96
174. The following example illustrates how SGE has been applied to Helena World:
71
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 75 of 96
175. This SGE “snapshot” provides the headline news, making it a one-stop shop. SGE’s
digest of the news can satisfy the reader about the “news of the day” without ever having to click
on any given story. Ironically, SGE regurgitates a description of Helena World, revealing its
plagiarized source. Then, SGE’s suggested follow-up questions divert the user into Google’s
ecosystem, rather than direct them to the Helena World website. Out of three thumbnail links for
176. Publishers have no economically viable or practical way to stop SGE from
plagiarizing their content and siphoning away referral traffic and ad revenue. SGE uses the same
web crawler as Google’s general search service: GoogleBot. This means the only way to block
SGE from plagiarizing content is to block GoogleBot completely—and disappear from Google
Search. 152 By using the same crawler for these two distinct services, Google ties these services in
an inextricable knot. Publishers therefore face a Hobson’s choice: surrender their content or
commit commercial suicide. In short, Publishers who use Google’s search referral services will
see a steep decline in the quality of Google’s service, while the price Google extorts is
unsustainably high—free syndication of their content. Consumers will bear the long-term effects
if Publishers cannot sustain the costs of producing high-quality, trustworthy news and reference
content.
177. This new form of search results is an extension and reinforcement of Google’s
152
Barry Schwartz, Google-Extended does not stop Google Search Generative Experience from using your site’s
content, Search Engine Land (Oct. 9, 2023), https://searchengineland.com/google-extended-does-not-stop-google-
search-generative-experience-from-using-your-sites-content-433058
153
Kif Leswig, Google’s new A.I. search could hurt traffic to websites, publishers worry, CNBC (May 11, 2023),
https://www.cnbc.com/2023/05/11/google-ai-search-could-squeeze-web-traffic-publishers-worry.html.
72
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 76 of 96
178. Another article expanded upon how SGE impacts Publishers: 154
154
John Russell, Publishers Worry Over Google’s New AI Search Tool, VOA (Oct. 24, 2023),
https://learningenglish.voanews.com/a/publishers-worry-over-google-s-new-ai-search-tool-/7322496.html.
73
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 77 of 96
****
More worrying is the possibility that people searching the web will
avoid clicking any of the links if the SGE passage meets the users'
need for information.
74
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 78 of 96
leveraged its monopoly power in search advertising and in furtherance of its tying conduct and
changed the way it has charged Publishers for its AdSense advertising service for the last 20
years. As noted above, AdSense is one of the world’s most popular digital advertising networks,
180. Historically, Google charged for its AdSense service by using a unitary revenue-
sharing structure with Publishers and basing payment per clicks on ads. That changed in 2023. 155
181. First, the method of payment was changed from pay-per-clicks to one based on pay-
per-impression, i.e., how often viewers saw an ad on a publisher’s site. As one critic has pointed out,
“[p]reviously, AdSense paid publishers primarily based on clicks, with payments triggered each time
a user clicked an ad on their site. Google is moving to paying on a cost-per-mile (CPM) basis. While
Google claims this aligns with industry standards, it hides a key impact--pay-per-click has generally
182. Second, the other change involved charging the Publisher separately for buy-side and
sell-side ad fees rather than some predetermined share of revenue. Under the new system, the buy-
side fees to Google are an average of 15% (many will be higher) and the sell-side fees to Google
155
Dan Taylor, Updates to how publishers monetize AdSense, Google Blog (Nov. 2, 2023),
https://blog.google/products/adsense/evolving-how-publishers-monetize-with-adsense/.
156
Sarang Kumar, How Google’s New Upcoming Update” to AdSense Hurt Publishers and Benefit Google,
LinkedIn (Nov. 2, 2023), https://www.linkedin.com/pulse/how-googles-new-upcoming-update-adsense-hurt-
publishers-sarang-kumar-
bmwic#:~:text=New%20Revenue%20Share%20Structure&text=%2D%20Publishers%20will%20receive%2080%2
5%20of,publishers%20with%20around%2068.8%20cents.
75
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 79 of 96
****
times.’ But it offered no explanation on the timing. AdSense has operated profitably for over 15
years on the old model. The changing variable is the Google Search ecosystem—the driver of traffic
to Publishers’ websites. As GAI search begins reduces referral traffic to websites, Google will
experience a marginal loss of revenue from AdSense: less traffic to Publishers’ means a smaller take
for Google under its revenue-sharing agreement, as fewer users will land on Publishers’ webpages
to click on the ads that are placed there. Google’s new AdSense policy will allow Google to mitigate
that loss by earning more per advertising dollar. Yet again, Publishers have no choice but to accept
184. Thus, Google is exploiting its search engine monopoly to unfairly reduce AdSense
payments to Publishers at the same time that SGE causes less traffic to be directed to their websites.
185. Combining SGE and the new AdSense policy, Google’s new regime protects its own
bottom line from the zero-click ecosystem, while stripping further value from Publishers’ websites.
8. Spoliation.
competitive conduct, as such, evidence important to shed light on Google’s internal assessment of
157
Id.
76
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 80 of 96
187. In September of 2008, Google issued an e-mail that advised employees to be careful
about what they wrote, given ongoing legal and “regulatory” scrutiny and to “avoid stating legal
conclusions”; in that same e-mail, it took the extraordinary step of taking “off the record” the Google
corporate default setting for Google Talk, the company’s internal chat system. 158 In October of 2009,
Varian wrote to a colleague that “you raise a good point about the word ‘market.’ I think it’s time
188. Later, in March of 2011, the following Google statement on “Antitrust Issues for
189. During his cross-examination, it was disclosed that Google’s Rosenberg wanted to use
one of the “trigger terms” (referring to “leveraging”) and had to consult Google’s in-house counsel
158
Ex. No. UPX1101 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-10/417474.pdf (last accessed Oct.
31, 2023).
159
Ex. No. UPX0499 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-09/416652.pdf (last accessed Oct.
29, 2023).
160
Ex. No. UPX1101 (1:20-cv-03010-APM), https://www.justice.gov/d9/2023-09/416634.pdf (last accessed Oct.
29, 2023).
161
Perlman Article.
77
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 81 of 96
190. Attorneys for the plaintiff in the EPIC Games Case also brought to light internal
evidence of improper spoilation by Google. They asserted that Google employees engaged in false
assertions of attorney-client privilege and deliberate destruction of chat messages. This led the
presiding judge, the Honorable Richard Donato, to say that “he was ‘profoundly concerned’ about
the testimony concerning fake privilege and the ‘abundance of evidence’ about Google employees
who didn't save their chats. ‘I am forming a deep concern that there is an ingrained systemic culture
of suppression of relevant evidence within Google,’ the judge said.” 162 On November 16, 2023, at a
hearing held specifically to confront Kent Walker, Google’s Chief Legal Officer, on its document
preservation practices, Judge Donato excoriated him, saying that “you of all people should have
known that there was no excuse for not preserving chats." 163
191. Most recently, Judge Donato has said that he has “never seen anything so egregious”
a Google’s spoliation of evidence, that it was “deeply troubling” to him, and that it constituted a
192. Google has unlawfully maintained and abused its monopoly in the general search
services market and abused its dominance as a digital platform in ancillary and dependent lines of
commerce, including digital news and reference publishing. It has done so through tying
arrangements, exclusionary agreements, and mergers and acquisitions. This anticompetitive conduct
162
Bonny Eslinger, Google’s CLO To Face Hot Seat As Judge questions ‘Culture’, Law 360 (Nov. 13, 2023),
https://www.law360.com/competition/articles/1766081/google-s-clo-to-face-hot-seat-as-judge-questions-culture-#.
163
Bonnie Eslinger, Google’s CLO Gets Earful From Judge Over Deleted Chats, Law 360 (Nov. 16, 2023),
https://www.law360.com/competition/articles/1767671/google-s-clo-gets-earful-from-judge-over-deleted-chats.
164
Hannah Abrazzi, Judge Slams Google’s ‘Deeply Troubling’ Tactics As Trial Ends, Law360 (Dec. 11, 2023),
https://www.law360.com/articles/1772102/judge-slams-google-s-deeply-troubling-tactics-as-trial-ends#.
78
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 82 of 96
(b) Excluding rival general search service providers from effective distribution
(c) Impeding innovation in search, online publishing, and GAI products that
could enable Publishers to compete with Google for user attention and
advertising revenue;
Google uses to acquire and attract and contain users within its own search
ecosystem;
(f) Using its dominance over search advertising to limit end-user visits to
(g) Degrading the quality and diversity of news and reference content available
193. News and reference information is a public good, essential to a healthy democracy
and a healthy economy, the anticompetitive effects of Google’s unlawful conduct have far-
reaching harmful consequences., Google’s maintenance and abuse of monopoly power and
dominance, have contributed to a staggering collapse of the news and reference publishing
industry, shuttered newsrooms, forced tens of thousands of professionals out of the labor market,
decreased the quality and variety of inventory, and created “news deserts” across the country.
194. This long-term harm in several lines of commerce—and the marketplace of ideas—
79
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 83 of 96
is not offset by any pro-competitive benefits. Indeed, Google’s tying arrangements, foreclosure
agreements, and mergers and acquisitions degrade consumer choice and quality—both in general
195. Any consumer gains in convenience are achievable through less restrictive means in
a competitive search market. For example, by licensing Publishers’ content rather than
misappropriating it, a general search service provider could offer a natural-language, question-
and-answer service to consumers without depleting and degrading the input inventory necessary
196. The anticompetitive effects flowing from Google’s unlawful maintenance and abuse
of monopoly in the general search services market and to abuse its dominance as a digital platform.
197. Google’s anticompetitive practices harming Publishers are not confined to the
United States. The practices exist in Australia, France, and Germany, among many other countries.
Australia, France and Germany specifically have recently taken concrete steps to make Google
198. In September of 2023, the ACCC issued an interim report as part of its digital platform
services inquiry, in which it noted the anticompetitive aspects of digital platform services, such as
165
ACCC, Digital platform services inquiry – September 2023 Report on the expanding ecosystems of digital
platform service providers, at 118-19 (Mar. 2023),
https://www.accc.gov.au/system/files/Digital%20platform%20services%20inquiry%20-
%20September%202023%20report%20-%20Issues%20paper_0.pdf.
80
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 84 of 96
▪ The ACCC also considers that digital platform service providers with
business models that are particularly data-driven, including advertising-
based content platforms or software platforms, may have an increased
ability and incentive from their expanding ecosystems to engage in
exclusionary data practices. The ACCC has previously considered a
lack of access to relevant data as a substantial barrier to entry and
expansion in some digital platform services, including search and ad
tech. (Emphases added, footnote omitted).
199. The French Autorité de la concurrence subsequently found “that Google’s practices
on the occasion of the entry into force of the related rights law were likely to constitute an abuse
of a dominant position and caused serious and immediate harm to the press sector.” 166 (Emphases
added.) The French authority ordered compulsory negotiations, which culminated with Google
settling with over 300 national, local, and specialist news publications in Germany, Hungary,
200. In Germany, in October of 2023, Google reached an agreement with Corint Media
(“Corint”) (an umbrella organization representing German and international Publishers) to pay a
total of $3.38 million annually for the use of headlines, excerpts, and thumbnails; “‘[t]he quasi-
monopolist Google dictates prices, so the route via the courts is the only way to arrive at
166
Id.
167
Foo Yun Chee, Google paying more than 300 EU publishers for news, more to come, Reuters (May 11, 2022),
https://www.reuters.com/technology/exclusive-google-paying-more-than-300-eu-publishers-news-more-come-2022-
05-11/.
81
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 85 of 96
appropriate remuneration for the use of content,’ said Corint’s managing director Christine Jury-
Fischer.” 168 Corint had previously complained to the German Federal Cartel Office that Google
has engaged in an “abuse of a dominant position, above all through the offers of so-called Google
News Showcase contracts and because of the deliberate undermining of the right to protection of
The speed at which competition harm can occur in these markets means
actions and enforcement must occur within a meaningful timeframe to
prevent digital firms from becoming entrenched. Learning from
interventions and honing approaches to remedies will help to promote
168
Klaus Lauer and Friederike, Google to pay German publishers 3.2 million euros per year on interim basis,
Reuters (Oct. 12, 2023), https://www.reuters.com/technology/google-pay-german-publishers-32-mln-eur-per-year-
interim-basis-2023-10-12/.
169
Press Release, Corint Media, Corint Media files an application with the Arbitration Board against Google (July
22, 2022), https://www.corint-media.com/en/corint-media-files-an-application-with-the-arbitration-board-against-
google-for-a-determination-of-the-remuneration-amount/.
82
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 86 of 96
202. Plaintiff brings this action against Google individually and on behalf of all other
persons and entities similarly situated (“the Class”). Plaintiff proposes the following Class
definition:
203. Excluded from the Class are Google’s officers, directors, and employees; any entity
in which Defendant has a controlling interest; and the affiliates, legal representatives, attorneys,
successors, heirs, and assigns of Google. Also excluded from the Class are members of the
judiciary to whom this case is assigned, their families and Members of their staff.
204. Plaintiff reserves the right to amend or modify the Class definition or create
205. Numerosity. The Members of the Class are so numerous that joinder of all of them
is impracticable.
206. Commonality. There are questions of law and fact common to the Class, which
predominate over any questions affecting only individual Class Members. These common
170
G7 Competition Authorities and Policymakers’ Summit Digital Competition Communiqué, Hiroshima Summit, 1-
2 (Nov. 8, 2023),
https://www.bundeskartellamt.de/SharedDocs/Publikation/EN/Others/G7_2023_Communique.pdf?__blob=publicati
onFile&v=2. (Emphases added.)
83
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 87 of 96
(b) Whether Google has tied its general search services to its digital news and
(d) Whether Google has tied its general search services to Bard and SGE;
(e) Whether Google has tied its advertising search services to a modification
(f) Whether Google is attempting to monopolize the market for digital news
line of commerce;
(h) Whether the conduct of Google caused injury to Plaintiff and other
(i) Whether the conduct of Google caused injury to Plaintiff and the Class to
suffer damages;
(j) Whether Google caused Plaintiff and the Class to suffer economic harm;
(l) What is the nature of appropriate injunctive relief that can serve as
207. Typicality. Plaintiff’s claims are typical of the claims of Class members, and
84
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 88 of 96
Plaintiff will fairly and adequately protect the interests of the Class. Plaintiff and all members of
the Class are similarly affected by Google’s unlawful conduct in that they paid artificially inflated
prices for Google’s digital intermediation services and were paid severely depressed prices by
208. Adequacy of Representation. Plaintiff will fairly and adequately represent and
protect the interests of the Members of the Class. Plaintiff’s Counsel are competent and
209. Predominance. Plaintiff’s claims arise out of the same common course of conduct
giving rise to the claims of the other members of the Class. Plaintiff’s interests are coincident with
and typical of, and not antagonistic to, those of the other members of the Class. The common issues
arising from Google’s conduct affecting Class Members set out above predominate over any
individualized issues. Adjudication of these common issues in a single action has important and
desirable advantages of judicial economy. The questions of law and fact common to the members
of the Class predominate over any questions affecting only individual members, including issues
210. Superiority. A class action is superior to other available methods for the fair and
efficient adjudication of the controversy. Class treatment of common questions of law and fact is
superior to multiple individual actions or piecemeal litigation. Absent a class action, most Class
Members would likely find that the cost of litigating their individual claims is prohibitively high
and would therefore have no effective remedy. The prosecution of separate actions by individual
Class Members would create a risk of inconsistent or varying adjudications with respect to
individual Class Members, which would establish incompatible standards of conduct for Google.
In contrast, to conduct this action as a class action presents far fewer management difficulties,
85
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 89 of 96
conserves judicial resources and the parties’ resources, and protects the rights of each Class
Member.
211. Google has acted on grounds that apply generally to the Class as a whole, so that
injunctive relief, and corresponding declaratory relief are appropriate on a Class-wide basis.
COUNT I
Unlawful Maintenance of Monopoly Power In Violation of Section 2 of the Sherman Act
(On Behalf of Plaintiff and The Class)
214. Google has monopoly power of nearly 90% (or even more, as to general search services
on mobile devices) within the United States market for general search services.
215. Google has monopoly power of over 70% within the market for search advertising
216. Google has violated Section 2 of the Sherman Act (15 U.S.C. § 2) by unlawfully
maintaining and abusing its monopoly power within these markets by the activities described herein,
including, inter alia: (a) acquiring companies (such as DoubleClick, InviteMedia, AdMob, and
AdMeld) that enabled it to build an exclusionary digital advertising search network; (b) negotiating
contracts with mobile phone manufacturers, platform creators and others (including MADAs and
RSAs) that enable it to have the default internet search engine position on products of the other
contracting party, thereby foreclosing competition; (c) using its monopoly profits to pay excessive
amounts for those contracts that sometimes involved sharing of search advertising revenues; (d)
requiring Apple to abandon any potential for using Siri as a search engine as part of the 2016 extension
86
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 90 of 96
of the “Apple Inc. Search Partnership”; (e) exhorting Microsoft not to give itself default search engine
status in updates of its operating system; (f) misappropriating the data off the websites of its Publisher
customers without compensation to republish on its news and reference publishing surfaces; (g)
scraping the data off the websites of its Publisher customers without compensation to create its GAI
program, Bard and the algorithms Google uses for searches; (h) introducing Bard without it being
ready for use in an effort to undermine competition from Microsoft and using it to entrench its market
dominance; (i) delaying for now any ability to avoid scraping of user/customer data through Bard; (j)
introducing and implementing SGE; (j) modifying the manner in which it charges Publishers for under
AdSense by using a cost per impression rather than a cost per click methodology and imposing
separate charges for its services; and (k) spoliating evidence by instructing employees to limit what
they say in writing and requiring that communications on Google Talk be all off the record or delete
internal chats.
217. Google’s conduct constitutes a “monopoly broth” of acts and practices, which, in
combination and as a while, have enabled it to unlawfully maintain and abuse its search monopoly
and exercise its abuse of dominance in the market for digital news and reference services.171
218. As a direct and foreseeable result, Plaintiff and Class members have been injured in
219. Google’s anticompetitive maintenance and abuse of its monopoly power is ongoing
and Plaintiff and Class members are entitled to injunctive relief and other equitable remedies that
would provide guardrails, given that they would otherwise have no adequate remedy at law.
220. Plaintiff and Class members are also entitled to recover monetary injury suffered
171
See Klein v. Facebook, Inc., 580 F.Supp.3d 743, 805-06 (N.D. Cal. 2022) (citing cases).
87
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 91 of 96
COUNT II
Attempted Monopolization in the Market for Digital Information
Publishing in Violation of Section 2 of the Sherman Act
(On Behalf of Plaintiff and The Class)
221. Plaintiff incorporates by reference the preceding factual allegations.
222. This cause of action is presented as an alternative to the claim alleged in Count I.
Plaintiff asserts in the alternative that Google intentionally and unlawfully has attempted to monopolize
223. The anticompetitive conduct set forth herein evinces a specific intent to monopolize and
a dangerous probability of monopolizing the market for digital news and reference publishing.
224. Google’s anticompetitive maintenance and abuse of its monopoly power is ongoing
and Plaintiff and Class members are entitled to injunctive relief and other equitable remedies that
would provide guardrails, given that they would otherwise have no adequate remedy at law.
225. As a result of Google’s unlawful conduct, Plaintiff and Class member have suffered,
226. Plaintiff and Class members are also entitled to attorneys’ fees and costs of suit.
COUNT III
Abuse of Dominance In Violation of Section 7 of the Clayton Act
(On Behalf of Plaintiff And The Class)
227. Plaintiff incorporates by reference the preceding factual allegations.
228. Google has violated Section 7 of the Clayton Act (15 U.S.C. §18) by: (a) acquiring
entities such as Youtube, Android, DoubleClick, InviteMedia, AdMob, AdMeld, and others cited
above; (b) entering into agreements (such as the “Apple Inc. Search Partnership” and other
agreements described above); and (c) implementing SGE with the goal of discouraging end-users
from visiting the websites of Class members who are part of the digital news and reference publishing
88
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 92 of 96
line of commerce that may tend to substantially lessen competition or activities in the lines of
and Plaintiff and Class members are entitled to injunctive relief and other equitable remedies, given
230. Plaintiff and Class members are also entitled to recover monetary injury suffered
COUNT IV
Illegal Tying In Violation Of Sections 1 And 3 Of The Sherman Act
(On Behalf of Plaintiff and The Class)
231. Plaintiff incorporates by reference the preceding factual allegations.
232. Google engaged in unlawful tying practices during the Class Period in violation
233. The tying product is general search services in the United States. Google has monopoly
234. The separate tied product consists of Google’s digital news and reference products in
235. With respect to the modification of payment to Publishers under the AdSense
program, the tying product is search advertising in the United States and the tied product is Google’s
236. On both instances, the tying and tied products are distinct and separate products. They
are sold in different markets; their functions are different; there is separate demand for them; and they
237. The respective use of the tied products are conditioned on the use of the tying
product.
89
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 93 of 96
238. Google possesses sufficient market power in the market for the tied products.
239. A substantial amount of interstate commerce for the tied product is affected.
240. Plaintiff and Class members paid excessive amounts for the tied products that would
have been less but for Google’s conduct and are entitled to receive treble damages.
241. Google’s anticompetitive tying arrangement is ongoing and Plaintiff and Class
members are entitled to injunctive relief and other equitable remedies, given that they would
242. Plaintiff and Class members are also entitled to attorneys’ fees and costs of suit
COUNT V
Unlawful Agreement Between Google And Apple To Unreasonably Restrain Trade In Violation of
Sections 1 And 3 of the Sherman Act On Behalf of Plaintiff and The Class
244. In 2016, there was a possibility that Apple might wish to use Siri as a form of search
engine, a fact referenced in the 2018 e-mail from Braddi quoted above.
245. Google insisted that Apple shelve any such plan as a condition of extending its “Apple
Inc. Search Partnership” with Google. Apple acceded to this request and, in return, continued to
share Google’s advertising revenue through the use of Apple devices, as reflected in the $18 billion
payment it got in 2021. Google currently pays Apple 36% of the ad revenue obtained through Google
searches on Apple’s Safari web browser. This agreement was unlawful per se under Sections 1 and
3 of the Sherman Act (15 U.S.C. §§ 1, 3) or is otherwise an unreasonable restraint of trade under those
statutes.
246. Plaintiff and Class members paid excessive amounts for Google’s services that
would have been less but for this conduct and are entitled to receive treble damages.
247. Google’s “Apple Inc. Search Partnership” is ongoing and Plaintiff and Class
members are entitled to injunctive relief and other equitable remedies to prevent its continued
90
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 94 of 96
operation, given that they would otherwise have no adequate remedy at law.
248. Plaintiff and Class members are also entitled to attorneys’ fees and costs of suit.
X. RELIEF
(a) This action may proceed as a class action, with Plaintiff serving as Class
(b) Judgment in favor of Plaintiff and members of the Class and against
Defendants;
(c) An award of statutory and other damages under 15 U.S.C. §15 for violations
(d) Permanent injunctive relief pursuant to 15 U.S.C. §26, including, but not
limited to, guardrails to restore and ensure a fair and level competitive playing
content in its general search services and search advertising services, such
guardrails may include, among others, GAI products (including SGE and Bard),
which could include (but are not limited to): (i) revising Google’s practices so that
a Publisher who wishes to opt out of SGE would still show up on Google
searches; (ii) obtaining prior informed consent from Publishers whose website
data is used to train GAI; (iii) allowing rivals to access the training data Google
uses for chatbots such as Bard; (iv) modifying the payment terms Google
91
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 95 of 96
Google’s compliance with the mandate of any injunction and on any potential
(e) Pre- and post-judgment interest on the damages awarded to Plaintiff and
members of the Class, and that such interest be awarded at the highest legal
rate from and after the date this class action complaint is first served on
Defendants;
(f) Defendants are to be jointly and severally responsible financially for the costs
and expenses of a Court approved notice program through post and media
(g) Further relief for Plaintiff and members of the Class as may be just and proper.
B. JURY DEMAND
Under Federal Rule of Civil Procedure 38(b), Plaintiff demands a trial by jury of all the claims
92
Case 1:23-cv-03677-APM Document 1 Filed 12/11/23 Page 96 of 96
Scott Martin
HAUSFELD LLP
33 Whitehall Street, 14th Floor
New York, NY 10004
Telephone: (646) 357-1100
[email protected]
Michael P. Lehmann
HAUSFELD LLP
600 Montgomery Street, Suite 3200
San Francisco, CA 94111
Telephone: (415) 633-1908
[email protected]
Michael L. Roberts
Erich P. Schork
Kelly A. Rinehart
ROBERTS LAW FIRM US, PC
1920 McKinney Avenue, Suite 700
Dallas, TX 75204
Telephone: (501) 821-5575
[email protected]
[email protected]
[email protected]
93
Case 1:23-cv-03677-APM Document 1-1 Filed 12/11/23 Page 1 of 2
8 ÿ7ÿÿ0ÿ
01213ÿ05267ÿ8966 ÿ
1ÿÿ31 18 66 8ÿ
+(/(1$:25/'&+521,&/(//& *22*/(//&DQG$/3+$%(7,1&
$PSKLWKHDWUH3DUNZD\
0RXQWDLQ9LHZ&$
ÿ
86&6HFWLRQ7KHFRPSODLQWLVEURXJKWDJDLQVWGHIHQGDQWVIRUPRQRSROL]DWLRQDQGDWWHPSWHGPRQRSROL]DWLRQLQYLRODWLRQRI6HFWLRQ
ÿ ÿ ÿ
DFWVRIDFTXLVLWLRQDQGDGHIDFWRMRLQWYHQWXUHWKDWYLRODWH6HFWLRQDQDJUHHPHQWQRWWRFRPSHWHDQGW\LQJLQYLRODWLRQRI6HFWLRQVDQG
ÿ
(GG3ÿ:=nk=*i=.ÿGcÿ pqrpsÿtuÿvqtwÿtwÿxÿY-**ÿ .=$-c.ÿÿÿ!%LOOLRQ EHIRUHWUHEOLQJ pÿrw ÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿS$TY-Gciÿ ; -iGScÿyz{r|ÿu}|}p}~}ÿÿ ÿÿÿÿÿÿÿÿÿÿÿUk:mÿ.=$-c.Aÿÿ m=*
ÿ
ÿÿÿ
ÿÿÿ
[ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿcSÿ
ÿ
(GGG3ÿ:=Y-i=.ÿ-*=@*Eÿ
ÿ
wÿÿ ÿ ÿ ÿ
tÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿGRÿ-cmÿ m=*ÿ [ cSÿÿ
ÿ ÿ
ÿ *G2c-ik:=ÿSRÿ-iiS:c=mÿSRÿ:=S:.ÿV0LFKDHO'+DXVIHOG
.-i=Aÿÿ ÿ
ÿ
Gc*i:kiGSc*ÿRS:ÿS$TY=iGc2ÿG(GYÿS(=:ÿ*==iÿU*j++ÿ
-%<&%?ÿHÿ&9&"ÿ9ÿ*<%ÿ
ÿ
vÿwÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿ ÿ¡ÿÿÿÿÿÿÿ}ÿÿvÿÿÿÿÿÿpÿÿÿyÿwÿÿwÿ¢£¤ÿÿÿÿÿÿÿÿ
pÿÿpÿÿÿÿÿÿÿÿÿ}ÿÿpÿÿÿÿÿÿÿÿÿpÿÿpÿÿÿÿÿ}ÿÿ
¥ÿ ÿÿÿÿÿÿÿÿ}ÿÿvÿÿÿÿÿ|ÿzÿÿÿÿ}ÿÿ
ÿ
G3ÿ p§yzvÿ§uÿ|rwt{rzprÿ§uÿut|wvÿ¥twvr{ÿ~¥xtzvtuu¨{rurz{xzvÿÿpÿÿ©ÿyÿ¢¢ªª¢ÿÿÿÿÿÿ
ÿ«ÿ{pÿ¬¬¬¬¬ÿÿÿÿÿÿyÿwÿÿÿ«ÿ{pÿÿ£££££ÿÿÿÿÿÿyÿw}ÿ
ÿ
GGG3ÿ ptvtrzwqt~ÿ§uÿ~|tzpt~x¥ÿ~x|vtrw©ÿvÿÿÿÿÿÿÿÿ®ÿÿÿÿÿ̄ÿÿÿ
ÿwÿtt}ÿ
ÿ
G(3ÿ pxwrÿxwwt°z±rzvÿxz{ÿzxvy|rÿ§uÿwytv©ÿvÿÿÿÿ²ÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿ}ÿÿÿÿÿÿ}ÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿ}ÿ
ÿ
(G3ÿ pxywrÿ§uÿxpvt§z©ÿpÿÿy}w}ÿpÿwÿÿÿÿÿÿÿÿÿÿÿÿÿÿ}ÿ
ÿ
(GGG3ÿ |r¥xvr{ÿpxwrwÿtuÿxz©ÿtÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿp³ÿ§}ÿ
ÿ
¯ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ}ÿÿ
Case 1:23-cv-03677-APM Document 1-2 Filed 12/11/23 Page 1 of 2
0ÿFÿ&ÿG77ÿ$7HÿIÿJ9
K&ÿ ÿHJÿ$7%ÿ7%87ÿ$ÿ&ÿÿÿJÿ5ÿIÿ&7ÿHJÿJÿ%7787HÿÿLÿ%ÿ4ÿHJÿ$ÿJ
%7ÿ&7ÿ7Hÿ7ÿ%ÿÿ7Hÿ7ÿI7JMÿ%ÿÿ$$7%ÿ%ÿ7NJ77ÿ$ÿ&7ÿ7Hÿ7ÿH7%G7HÿÿO7H9ÿ69ÿ89
P9ÿ ÿ55ÿ%ÿ5ÿLÿJÿÿ7%87ÿÿ&7ÿN$$ÿÿF7%ÿÿ&7ÿ&7HÿNÿ%ÿÿÿH7%ÿ67ÿ ÿ$
&7ÿO7H7%ÿ67ÿ$ÿ8ÿP%7H%79ÿÿ"&7ÿF7%ÿ%ÿÿÿG7ÿ7%87Hÿÿ&7ÿN$$ÿ%ÿN$$Qÿ%7JM
F&7ÿ7ÿHÿHH%7ÿ%7A Michael D. Hausfeld
HAUSFELD LLP
888 16th Street, NW
Suite 300
Washington, DC 20006
!$ÿJÿ$ÿÿ%7NHMÿRHI7ÿGJÿH7$ÿFÿG7ÿ77%7HÿIÿJÿ$%ÿ&7ÿ%77$ÿH7H7Hÿÿ&7ÿN9ÿ
Sÿÿÿ$7ÿJ%ÿF7%ÿ%ÿÿF&ÿ&7ÿ%9
TUVWXTÿ2YÿZTW[T\]ÿZXW\^ÿ_`ÿZ_a\b
7A
[+c,*-dE3ÿe.ÿZ)3EfÿeEÿ23gd-hÿZ)3Ef
Case 1:23-cv-03677-APM Document 1-2 Filed 12/11/23 Page 2 of 2
01ÿ334ÿ56789ÿ4 ÿÿÿÿÿ8ÿ0ÿ57ÿ
8ÿ0ÿ9
!ÿ!ÿ#$%&'$
()*+,ÿ,./0+12ÿ,*1345ÿ210ÿ6.ÿ7+4.5ÿ8+0*ÿ0*.ÿ/1390ÿ324.,,ÿ9.:3+9.5ÿ6;ÿ<.5=ÿ>=ÿ?+@=ÿA=ÿBÿ(4CC
DEÿÿFGÿHIJKLÿNOÿPIQPRPQSJTÿJIQÿUPUTLVÿPOÿJIWX
YÿG7787Zÿ[\ÿ7ÿÿHQJULX 9
] ^ÿ_7G\ÿ7G87ZÿE7ÿÿÿE7ÿZ8ZÿÿH`TJaLX
ÿHQJULX bÿG
] ^ÿ7FÿE7ÿÿÿE7ÿZ8ZcÿG7Z77ÿGÿÿ_7ÿFÿ[Z7ÿYEÿHIJKLX
dÿÿ_7GÿFÿ[7ÿ7ÿZÿZG7ÿYEÿG7Z7ÿE7G7d
ÿHQJULX dÿZÿ7Zÿÿ_\ÿÿE7ÿZ8ZcÿÿeYÿZZG7bÿG
] ^ÿ7G87ZÿE7ÿÿÿHIJKLÿNOÿPIQPRPQSJTX dÿYEÿ
ÿZ77Zÿ[\ÿYÿÿ7_ÿ7G87ÿFÿ_G7ÿÿ[7EFÿFÿHIJKLÿNOÿNfgJIPhJUPNIX
ÿHQJULX bÿG
] ^ÿG7G7ZÿE7ÿÿ7i77Zÿ[77 bÿG
] 1E7GÿHj`LaPOWXk
9
l\ÿF77ÿG7ÿm FGÿG87ÿZÿm FGÿ7G87dÿFGÿÿÿFÿm tutt 9
^ÿZ7G7ÿZ7Gÿ_7\ÿFÿ_7GnG\ÿEÿEÿFGÿÿG79
o7p
qLfRLfrjÿjPgIJUSfL
sfPIULQÿIJKLÿJIQÿUPUTL
qLfRLfrjÿJQQfLjj
0ZZÿFGÿG7GZÿ7_7Zÿ7G87dÿ7p
Case 1:23-cv-03677-APM Document 1-3 Filed 12/11/23 Page 1 of 2
0ÿFÿ&ÿG77ÿ$7HÿIÿJ9
K&ÿ ÿHJÿ$7%ÿ7%87ÿ$ÿ&ÿÿÿJÿ5ÿIÿ&7ÿHJÿJÿ%7787HÿÿLÿ%ÿ4ÿHJÿ$ÿJ
%7ÿ&7ÿ7Hÿ7ÿ%ÿÿ7Hÿ7ÿI7JMÿ%ÿÿ$$7%ÿ%ÿ7NJ77ÿ$ÿ&7ÿ7Hÿ7ÿH7%G7HÿÿO7H9ÿ69ÿ89
P9ÿ ÿ55ÿ%ÿ5ÿLÿJÿÿ7%87ÿÿ&7ÿN$$ÿÿF7%ÿÿ&7ÿ&7HÿNÿ%ÿÿÿH7%ÿ67ÿ ÿ$
&7ÿO7H7%ÿ67ÿ$ÿ8ÿP%7H%79ÿÿ"&7ÿF7%ÿ%ÿÿÿG7ÿ7%87Hÿÿ&7ÿN$$ÿ%ÿN$$Qÿ%7JM
F&7ÿ7ÿHÿHH%7ÿ%7A Michael D. Hausfeld
HAUSFELD LLP
888 16th Street, NW
Suite 300
Washington, DC 20006
!$ÿJÿ$ÿÿ%7NHMÿRHI7ÿGJÿH7$ÿFÿG7ÿ77%7HÿIÿJÿ$%ÿ&7ÿ%77$ÿH7H7Hÿÿ&7ÿN9ÿ
Sÿÿÿ$7ÿJ%ÿF7%ÿ%ÿÿF&ÿ&7ÿ%9
TUVWXTÿ2YÿZTW[T\]ÿZXW\^ÿ_`ÿZ_a\b
7A
[+c,*-dE3ÿe.ÿZ)3EfÿeEÿ23gd-hÿZ)3Ef
Case 1:23-cv-03677-APM Document 1-3 Filed 12/11/23 Page 2 of 2
01ÿ334ÿ56789ÿ4 ÿÿÿÿÿ8ÿ0ÿ57ÿ
8ÿ0ÿ9
!ÿ!ÿ#$%&'$
()*+,ÿ,./0+12ÿ,*1345ÿ210ÿ6.ÿ7+4.5ÿ8+0*ÿ0*.ÿ/1390ÿ324.,,ÿ9.:3+9.5ÿ6;ÿ<.5=ÿ>=ÿ?+@=ÿA=ÿBÿ(4CC
DEÿÿFGÿHIJKLÿNOÿPIQPRPQSJTÿJIQÿUPUTLVÿPOÿJIWX
YÿG7787Zÿ[\ÿ7ÿÿHQJULX 9
] ^ÿ_7G\ÿ7G87ZÿE7ÿÿÿE7ÿZ8ZÿÿH`TJaLX
ÿHQJULX bÿG
] ^ÿ7FÿE7ÿÿÿE7ÿZ8ZcÿG7Z77ÿGÿÿ_7ÿFÿ[Z7ÿYEÿHIJKLX
dÿÿ_7GÿFÿ[7ÿ7ÿZÿZG7ÿYEÿG7Z7ÿE7G7d
ÿHQJULX dÿZÿ7Zÿÿ_\ÿÿE7ÿZ8ZcÿÿeYÿZZG7bÿG
] ^ÿ7G87ZÿE7ÿÿÿHIJKLÿNOÿPIQPRPQSJTX dÿYEÿ
ÿZ77Zÿ[\ÿYÿÿ7_ÿ7G87ÿFÿ_G7ÿÿ[7EFÿFÿHIJKLÿNOÿNfgJIPhJUPNIX
ÿHQJULX bÿG
] ^ÿG7G7ZÿE7ÿÿ7i77Zÿ[77 bÿG
] 1E7GÿHj`LaPOWXk
9
l\ÿF77ÿG7ÿm FGÿG87ÿZÿm FGÿ7G87dÿFGÿÿÿFÿm tutt 9
^ÿZ7G7ÿZ7Gÿ_7\ÿFÿ_7GnG\ÿEÿEÿFGÿÿG79
o7p
qLfRLfrjÿjPgIJUSfL
sfPIULQÿIJKLÿJIQÿUPUTL
qLfRLfrjÿJQQfLjj
0ZZÿFGÿG7GZÿ7_7Zÿ7G87dÿ7p