United States v. Google LLC

District Court, E.D. Virginia·Decided October 16, 2023·No. 1:23-cv-00108·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division UNITED STATES OF AMERICA, et al., ) Plaintiffs, V. 1:23-cv-108 (LMB/JFA) GOOGLE LLC, Defendant. MEMORANDUM OPINION Before the Court is a Motion to Disqualify Paul, Weiss, Rifkind, Wharton & Garrison LLP (“Paul, Weiss”) (“Motion to Disqualify”) as counsel to defendant Google LLC (“Google”) filed by non-parties Yelp, Inc. (“Yelp”) and News/Media Alliance (“NMA”) (collectively, “non- parties”). This dispute between Yelp, NMA, and Google’s counsel Paul, Weiss is orthogonal to this litigation which focuses on Google’s allegedly anticompetitive conduct in the market for “open web display advertising.” [Dkt. No. 120]. After hearing oral argument in which only the non-parties and Google participated, the Court denied the Motion to Disqualify from the bench. This Memorandum Opinion further explains the basis for that decision. I. BACKGROUND A. Paul, Weiss’s Representation of Yelp and NMA In 2016, non-parties Yelp and NMA! retained Paul, Weiss to provide legal counsel on several antitrust matters. The representation included communications between counsel and

| Yelp owns and operates Yelp.com, a popular local search website, mobile website, and related mobile app for users to share information about their communities, including local businesses, services, and gatherings. NMA is a trade association representing approximately 2,000 newspapers in the United States, including large daily papers, non-daily and small market publications, as well as digital and multiplatform products. [Dkt. No. 460] 5-6.

federal antitrust enforcement officials regarding Google’s business practices. [Dkt. No. 460] at 5. Jonathan Kanter (“Kanter”), formerly a Paul, Weiss partner and now the Assistant Attorney General for the Antitrust Division at the U.S. Department of Justice, and Brandon Kressin (“Kressin”) were the primary Paul, Weiss attorneys who provided services to Yelp and NMA.

The full scope and details of the work performed for Yelp and NMA by Kanter and Kressin is disputed, but the parties essentially agree that Kanter and Kressin’s representation focused on communications with the Department of Justice demonstrating Google’s purported anticompetitive conduct and how that conduct impacted the business decisions and strategies of Yelp, NMA, and other technology companies. Id, As part of their representation, Kanter and Kressin drafted a White Paper titled “Google’s Vertical Search Abuses[:] How Google’s conduct in local search and other search verticals violates the U.S. antitrust laws,” and sent it to the Department of Justice’s Antitrust Division on April 14, 2020. Id. at 10 (citing [Dkt. No. 368] Ex. 9) (the “White Paper”). In their opening brief, the non-parties allege that “Yelp’s past advocacy to DOJ [ ] focused on Internet search, not advertising technology,” [Dkt. No. 460] at 6; however, in their reply, they expanded their characterization of the legal work performed, claiming that “Paul, Weiss attorneys also advocated to state and federal enforcers [ ] how Google’s digital advertising and ad tech conduct violates antitrust laws.” [Dkt. No. 479] at 9. The non-parties support their Motion to Disqualify by arguing that “it was common practice for [] Kanter and [] Kressin to provide updates regarding their representation of clients, including Yelp and NMA, to other attorneys at Paul, Weiss (including attorneys that have now appeared for Google in this case) at regular meetings of the firm’s antitrust practice group.” [Dkt. No. 460] at 7. They also allege that Paul, Weiss “still possesses privileged and confidential information relating to its representation of” Yelp and NMA. Id. at 5-6. From these arguments,

the non-parties maintain that such information poses a risk that Paul, Weiss would use confidential information of their former clients to Google’s advantage and to the detriment of Yelp and NMA. [Dkt. No. 479] at 14 (“Google can obtain that information from Paul, Weiss or instruct Paul, Weiss to utilize that information to Google’s benefit and the detriment of Yelp and NMA.”). Paul, Weiss presents a narrower picture of the firm’s representation of Yelp and NMA and of any risk of harm to either non-party from their continued representation of Google. First, Paul, Weiss points out that in September 2020, Yelp and NMA ceased being clients of the firm’ when Kanter and Kressin left the firm to start their own antitrust litigation practice.? Along with Mark Meador (“Meador”), another former Paul, Weiss attorney, Kanter and Kressin “performed the overwhelming amount of work for both clients . . . [and] their time accounted for 94% of the attorney time billed to Yelp and 84% of the attorney time billed to NMA.” [Dkt. No. 477] at 4. Paul, Weiss contends that only Kanter, Kressin, and Meador know the full scope of the work Paul, Weiss performed for Yelp and NMA. Moreover, none of the few lawyers who billed any time to Yelp or NMA ever did any work related to Google’s Ad Tech business (as contrasted with Google’s Internet search business), and with the exception of Daniel Crane (“Crane”), 4 no Paul, Weiss lawyer who worked for Yelp or NMA has worked on the Google litigation. Crane billed the non-parties a total of 36 hours over a three-week period in early 2020, and his work

2 Yelp and NMA’s engagement letters, which were signed by Kanter, provided that the attorney- client relationship terminated when the proposed work was completed. [Dkt. No. 477] Ex. 1 3 At first, their firm was called “The Kanter Law Group.” But when Kanter joined the U.S. Department of Justice, the firm was renamed “The Kressin Law Group.” It has since changed to “Kressin Meador,” which reflects Meador’s joining of the firm. See www.kressinmeador.com/. 4 Daniel Crane is a professor of law at the University of Michigan Law School and serves as counsel to Paul, Weiss on antitrust matters. See https://www.paulweiss.com/professionals/ partners-and-counsel/daniel-a-crane.

was limited to contributions to the White Paper. [Dkt. No. 477] at 5. “None of the other lawyers at Paul, Weiss who represent Google in this matter has received or accessed any confidential information about Yelp or NMA. And none of the lawyers at Paul, Weiss who represent Google in this matter has received or accessed any confidential information of Yelp or NMA concerning

Google’s Ad Tech business.” Id. It is undisputed that none of Paul, Weiss’s attorneys has performed any work for Yelp or NMA for over three years. B. The Google Litigation In October 2020, the United States Department of Justice and eleven state attorneys general filed a complaint against Google in the United States District Court for the District of Columbia, alleging that Google unlawfully maintained monopolies in general search services by entering into a series of exclusionary agreements that prohibited preinstallation of any competing search service and required Google to be the default search engine on mobile devices and _

computers. Thereafter, the attorneys general of thirty-eight states and territories filed a separate complaint, which was joined with the Department of Justice action in the District of Columbia litigation. In what is referred to as the “Search Litigation,” Google is represented by Williams & Connolly, Ropes & Gray, and Wilson Sonsini Goodrich & Rosati. On December 16, 2020, the Texas Attorney General, along with attorneys general from nine other states, filed an action against Google in the United States District Court for the Eastern District of Texas alleging that Google’s advertising technology (“Ad Tech”) business practices are anticompetitive in violation of federal law. Texas v. Google, LLC, No. 1:20-cv- 00957 (E.D. Tex.).

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