In Amicus Brief, Open Markets Calls on Federal Court to Stop Google from Extending Its Dominance Into Yet Another Market Online
Tech titan should be forced to stop fixing the market to oppress high-quality, fairly-priced, stock image companies like Dreamstime
WASHINGTON – The Open Markets Institute today filed an amicus brief in support of stock photography company Dreamstime in its lawsuit against Google for abusing its monopoly in online search.
Dreamstime offers a large repository of licensed, high-quality images on fair, reasonable terms. After becoming a leading stock photography provider, Dreamstime was marginalized by Google. In a campaign to promote its Google Images, Google, starting in late 2015, demoted Dreamstime in search results and starved it of traffic. Because Google serves as “the front door of the internet,” it controls the fate of countless firms and can crush dependent competitors like Dreamstime.
Instead of competing with a better product and better terms, Google engaged in self-preferencing—elevating Google Images and disappearing Dreamstime in search. Google has employed this tactic against many competitors. The Sherman Act, however, prohibits a monopolist from using its dominance in such a manner to gain a leg up over independent rivals.
Although Dreamstime presented a compelling set of facts and strong legal arguments in its 2018 lawsuit, District Judge William Alsup of the Northern District of California granted Google’s motion to dismiss Dreamstime’s antitrust claim. Judge Alsup misinterpreted and misapplied the law in concluding that Dreamstime failed to allege “harm to competition.” Dreamstime should have had the opportunity to take its monopolization claim to the jury.
In response, Sandeep Vaheesan, legal director at Open Markets Institute, issued the following statement:
“In dismissing Dreamstime’s meritorious monopolization lawsuit against Google, Judge Alsup blessed Google’s use of its monopoly power in search to squeeze rivals in adjacent markets. Applying established Sherman Act case law, the Court of Appeals for the Ninth Circuit should reverse the district court’s decision and permit Dreamstime to takes its antitrust claim to the jury. Barring Google from using its dominance in search to take over countless other markets is critical for restoring fair competition and open markets online.”
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