In a legal setback for Texas' attempt to exercise its authority over the tech giant, a Corpus Christi appeals court has decided that the state does not have the jurisdiction to sue Google Inc. over claims of deceptive business practices. According to FOX 7 Austin, the Thirteenth District Court of Appeals in Corpus Christi stated that Google's business operations within Texas do not establish the necessary legal ground for the state to claim jurisdiction.
The lawsuit, initiated under the Texas Deceptive Trade Practices Act, originally accused Google of misleading users about their privacy, particularly pertaining to location and search history tracking. However, the court ruled that the evidence presented, as detailed in the court’s unanimous decision, was largely related to activities and employees operating outside of the Lone Star State. Chief Justice Jaime Tijerina further explained that even the "small percentage of business" Google conducts in Texas does not equate to having 'substantial, continuous, and systematic contacts' necessary to establish jurisdiction.
Despite these findings, the implications of the court's decision extend beyond this specific case. There is other litigation pending against Google by the Texas Attorney General's office, as reported by Texas Lawyer. This includes allegations involving deceptive advertisements and the unauthorized collection of biometric data. Nonetheless, the court's recent ruling casts doubt on the state's ability to hold the company accountable under Texas-state laws.
The appeals court also remarked on the state's failed attempt to assert specific jurisdiction, which would require a direct connection between the company's business dealings in Texas and the deceptive trade practices claim. Justice Tijerina cited a lack of allegations tying the operative facts of the litigation to Google's contacts with Texas, thus finding no basis for specific jurisdiction. Additionally, he highlighted that Google argued successfully that their Texas operations, consist of only a fraction of their national and global business—an assertion that challenges the notion of the state being considered the tech company's official home base.
While Google's legal representatives from the Willkie Farr & Gallagher firm in San Francisco and Houston's R. Paul Yetter of Yetter Coleman have expressed their client's views in court, the office of the Texas Attorney General has remained silent following the decision with neither Principal Deputy Solicitor General Lanora Pettit nor the media office responding to requests for comments on the ruling.
