It what appears to be a frivolous suit, a law firm has filed an antitrust suit against Google Inc. (NASDAQ: GOOG). While the action may get headlines, there is no reason to believe that the move will get any traction.
Hagens Berman, which calls itself a consumer rights class-action law firm, announced:
it has filed a nationwide antitrust class-action lawsuit against Google claiming the search engine giant illegally monopolized, and financially and creatively stagnated the American market of internet and mobile search.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Google’s monopoly of these markets stems from the company’s purchasing of Android mobile operating system (Android OS) to maintain and expand its monopoly by pre-loading its own suite of applications onto the devices by way of secret Mobile Application Distribution Agreements (MADA). According to the suit, these agreements were hidden and marked to be viewed only by attorneys.
According to the suit, Google’s role in placing this suite of apps, including Google Play, and YouTube, among others, has hampered the market and kept the price of devices made by competing device manufactures like Samsung and HTC artificially high.
Whether or not the case has merit, such an action would need to be taken by the Justice Department to have any affect. To this point, the federal government has shown no interest in taking on Google over antitrust issues.
In other words, Hagens Berman’s suit is a flash in the pan.
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