Dream Big Media Inc. v. Alphabet Inc.

CourtDistrict Court, N.D. California
DecidedNovember 1, 2022
Docket3:22-cv-02314
StatusUnknown

This text of Dream Big Media Inc. v. Alphabet Inc. (Dream Big Media Inc. v. Alphabet Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dream Big Media Inc. v. Alphabet Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 DREAM BIG MEDIA INC., et al., Case No. 22-cv-02314-JSW

8 Plaintiffs, ORDER GRANTING MOTION TO 9 v. DISMISS AND DENYING MOTION TO STRIKE CLASS ALLEGATIONS 10 ALPHABET INC., et al., Re: Dkt. Nos. 29, 30 Defendants. 11

12 13 Now before the Court for consideration are the motion to dismiss and motion strike filed 14 by Defendants Google LLC and Alphabet Inc. (collectively, “Google”). The Court has considered 15 the parties’ papers, relevant legal authority, and the record in the case, and it finds this matter 16 suitable for disposition without oral argument. See N.D. Civ. L.R. 7-1(b). For the following 17 reasons, the Court GRANTS Google’s motion to dismiss and DENIES Google’s motion to strike. 18 BACKGROUND 19 Plaintiffs Dream Big Media, Getify Solutions, Inc. (“Getify”), and Sprinter Supplier LLC 20 (“Sprinter Supplier”) (collectively, “Plaintiffs”) are three businesses that allegedly use Google 21 mapping services, including application programming interfaces (“APIs”), to display or use maps 22 or maps-related information on their websites or mobile applications. The crux of Plaintiffs’ 23 complaint is that Google unlawfully ties its Maps, Routes, and Places API services together by 24 purportedly refusing to sell one API service unless the purchaser also agrees to purchase another 25 Google mapping service or agrees to refrain from purchasing API services from other companies. 26 Plaintiffs allege that this conduct, combined with Google’s alleged market power, allows Google 27 to charge higher prices for its mapping API services. Plaintiffs allege Google’s actions constitute 1 Act, the Clayton Act, and California’s Unfair Competition Law. 2 Dream Big Media is a digital-advertising business that has used and paid for Google’s 3 digital-mapping APIs. (Compl. ¶ 28.) Dream Big Media has used Google Maps Route APIs to 4 determine the distance between two zip codes. (Id. ¶ 29.) Plaintiffs allege that Dream Big Media 5 could not use competing providers’ digital-mapping APIs and could not mix and combine 6 Google’s digital-mapping APIs with competitors’ digital-mapping services. (Id. ¶ 30.) 7 Getify developed a mobile web app called RestaurNote that allowed users to make 8 notations about experiences related to their physical location. (Id. ¶ 33.) RestaurNote used credits 9 offered by Google to utilize Google’s web-based digital-mapping APIs. (Id. ¶¶ 35, 37.) Plaintiffs 10 allege that after Google increased the price of its digital-mapping APIs, use of the services became 11 “unworkable” for RestuarNote. (Id. ¶ 37.) Plaintiffs allege that Getify could not combine the use 12 Google’s digital-mapping APIs with APIs from other providers if any of the data interacted with 13 Google’s digital-mapping capabilities. (Id. ¶ 38.) 14 Sprinter Supplier is an e-commerce automotive parts shop that wanted to use digital- 15 mapping APIs to help local customers find its business. (Id. ¶ 40.) Plaintiffs allege that Sprinter 16 Supplier searched for providers to use as an alternative to or in combination with Google’s digital- 17 mapping APIs because of the high prices Google charged for its services. (Id. ¶ 41.) Plaintiffs 18 allege, however, that because of Google’s anticompetitive conduct, Sprinter Supplier could not use 19 competing providers’ digital-mapping APIs. (Id. ¶ 42.) As a result, Sprinter Supplier used 20 Google’s products and services, which depleted the free credits Google had offered. (Id.) 21 Plaintiffs allege that the relevant product markets are Maps APIs, Routes APIs, and Places 22 APIs. (Id. ¶¶ 73-76.) Plaintiffs assert each market is “global.” (Id.) Plaintiffs also allege that 23 other relevant markets include “the market for internet search” and “the market for cloud 24 computing.” (Id. ¶ 77.) Plaintiffs allege Google engages in exclusionary tying to prohibit 25 customers from using any competing tools. This theory is based on Google’s Terms of Service for 26 its digital-mapping API services, which state: 27 (e) No Use With Non-Google Maps. To avoid quality issues and/or For example, Customer will not (i) display or use Places content on a 1 non-Google map, (ii) display Street View imagery and non-Google maps on the same screen, or (iii) link a Google Map to a non-Google 2 Maps content or a non-Google map. 3 (Id. ¶ 157.) Plaintiffs allege that the Terms of Services “prohibit developers from using any 4 component of the Google Maps Core Service with mapping services provided by non-Google 5 firms.” (Id. ¶ 158.) Plaintiffs further allege that if a customer requests a specific digital-mapping 6 API, Google will unilaterally add on additional digital-mapping APIs and charge the customer for 7 those APIs. (Id. ¶ 164.) 8 The Court will address additional facts as necessary in the analysis. 9 ANALYSIS 10 A. Legal Standard Applicable to a Motion to Dismiss. 11 A complaint must contain a “short and plain statement of the claim showing that the 12 pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “[D]etailed factual allegations are not 13 required” to survive a motion to dismiss if the complaint contains sufficient factual allegations to 14 “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) 15 (citing Bell Atl. v. Twombly, 550 U.S. 544, 570 (2007)). “Labels and conclusions[] and a 16 formulaic recitation of the elements of a cause of action will not do.” Twombly, 50 U.S. at 555. 17 When evaluating a Rule 12(b)(6) motion to dismiss, a district court accepts as true all 18 material facts alleged in the complaint and draws all reasonable inferences in favor of the plaintiff. 19 Faulkner v. ADT Servs., Inc., 706 F.3d 1017, 1019 (9th Cir. 2013). A district court should grant 20 leave to amend unless the court determines the pleading could not “possibly be cured by the 21 allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1130 (9th Cir. 2000). 22 B. The Court Grants Google’s Motion to Dismiss. 23 1. Plaintiffs Fail to Allege a Tying Claim. 24 Google argues Plaintiffs fail to allege a tying claim.1 To state a valid tying claim, a 25 1 Plaintiffs assert tying claims under sections 1 and 2 of the Sherman Act, and under section 3 of 26 the Clayton Act. Google asserts, and Plaintiffs do not dispute, that if Plaintiffs fails to meet the requirements under section 1, Plaintiffs claims under the other statutes fail. See Mozart Co v. 27 Mercedes-Benz of N. Am., Inc., 833 F.2d 1342, 1352 (9th Cir. 1987) (noting that the elements for 1 plaintiff must allege: “(1) that [the defendant] tied together the sale of two distinct products or 2 services; (2) that [the defendant] possesses enough economic power in the tying product market to 3 coerce its customers into purchasing the tied product; and (3) that the tying arrangement affects a 4 not insubstantial volume of commerce in the tied product market.” Aerotec Int’l, Inc. v. 5 Honeywell Int’l, Inc., 836 F.3d 1171, 1178 (9th Cir. 2016) (citing Cascade Health Sols. v. 6 PeaceHealth, 515 F.3d 883, 913 (9th Cir. 2007)).

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Dream Big Media Inc. v. Alphabet Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/dream-big-media-inc-v-alphabet-inc-cand-2022.