May 20 (Reuters) - Alphabet's Google has
preemptively paid damages to the U.S. government, an unusual
move aimed at avoiding a jury trial in the Justice Department's
antitrust lawsuit over its digital advertising business.
Google disclosed the payment, but not the amount, in a court
filing last week that said the case should be heard and decided
by a judge directly. Without a monetary damages claim, Google
argued, the government has no right to a jury trial.
The Justice Department, which has not said if it will accept
the payment, declined to comment on the filing. Google asserted
that its check, which it said covered its alleged overcharges
for online ads, allows it to sidestep a jury trial whether or
not the government takes it.
The Justice Department filed the case last year with
Virginia and other states, alleging Google was stifling
competition for advertising technology. The government has said
Google should be forced to sell its ad manager suite.
Google, which has denied the allegations, said in a
statement that the Justice Department "manufactured a damages
claim at the last minute in an attempt to secure a jury trial."
Without disclosing the size of its payment, Google said that
after months of discovery, the Justice Department could only
point to estimated damages of less than $1 million.
The company said the government has said the case is "highly
technical" and "outside the everyday knowledge of most
prospective jurors."
The Justice Department will have a chance to respond to
Google's arguments before a judge considers the question at a
hearing scheduled for June 21 in Alexandria, Virginia, federal
court. The trial is set for September, currently before a jury.
Stanford Law School's Mark Lemley told Reuters he was
skeptical Google's gambit would prevail. He said a jury could
ultimately decide higher damages than whatever Google put
forward.
"Antitrust cases regularly go to juries. I think it is a
sign that Google is worried about what a jury will do," Lemley
said.
Another legal scholar, Herbert Hovenkamp of the University
of Pennsylvania's law school, called Google's move "smart" in a
post on X. "Juries are bad at deciding technical cases, and
further they do not have the authority to order a breakup," he
wrote.
The U.S. Supreme Court ruled in a 2016 case that an offer
for "complete relief" did not wipe out a class-action claim. But
Google argued its payment is different, because it submitted an
actual check and not merely an offer.
Google has faced two antitrust trials in recent months, but
only one involved a jury.
In that case, a jury in San Francisco ruled for "Fortnite"
maker Epic Games that Google illegally barred competing Android
app stores and forced developers to use its payment system for
in-app transactions.
In the other case, a Washington, D.C. federal judge is
weighing allegations that Google has unlawfully stifled
competition for web search. The court heard closing arguments
this month but has not ruled.
The case is United States v. Google LLC, U.S. District Court
for the Eastern District of Virginia, No. 1:23-cv-00108.
For U.S.: Julia Tarver Wood and Aaron Teitelbaum of the
Department of Justice
For Google: Eric Mahr and Andrew Ewalt of Freshfields
Bruckhaus Deringer; Kannon Shanmugam and Karen Dunn of Paul,
Weiss, Rifkind, Wharton & Garrison; and Daniel Bitton and
Bradley Justus of Axinn, Veltrop & Harkrider
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