Google Scores Partial Win in Search Result Manipulation Case

Google scored a partial win in a case alleging the tech giant manipulated search results, advertisements, and mobile applications, a federal court ruled June 5.

Stock photo company Dreamstime.com claims that its search ranking on Google plummeted in 2015, when Google entered into a licensing agreement with Dreamstime’s main competitor. The company alleges that Google obstructed its efforts to increase its advertising to compensate for this lost search ranking. It allegedly canceled Dreamstime’s most successful advertising campaigns without notice, suspended its account based on bogus accusations of policy violations, and removing Dreamstime’s mobile app for featuring lingerie photos while the competitor’s remained active despite featuring explicitly nude photographs.

The company sued for unlawful monopolization, breach of contract, breach of implied covenant of good faith and fair dealing, and violations of the California Business and Professions Code. The court previously dismissed Dreamstime’s unlawful monopolization claim, but let the other three go forward.

The U.S. District Court for the Northern District of California June 5 rejected Google’s argument that Dreamstime’s claims about the content or arrangement of search results must be tossed on First Amendment grounds.

“Just like a fast-talking con-artist cannot hide behind the First Amendment, neither can Google. . . .Victims can sue all day long,” the court wrote.

But the court sided with Google on its argument that a limitation of liability clause in its Google Play Agreement limit the damages Dreamstime can seek under its breach of contract and breach of implied covenant claims.

Dreamstime is represented by Baker Marquart LLP and Bailey Duquette P.C. Google is represented by Wilson Sonsini Goodrich and Rosati PC.

The case is Dreamstime. Com, LLC v. Google, N.D. Cal., No. 3:18-cv-01910, 6/5/19.