`
`
`
`
`
`
`
`
`
`
`
`
`
`David J. Groesbeck
`WSBA No. 24749
`David J. Groesbeck, P.S.
`1716 Sylvester St. SW
`Olympia, Washington 98501
`Tel.: 509-747-2800
`Fax: 509-747-2828
`Email: david@groesbecklaw.com
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF WASHINGTON
` AT SEATTLE
`
`
`PARLER LLC,
`
`v.
`
`
`Plaintiff,
`
`
`AMAZON WEB SERVICES, INC.,
`
`
`
`Defendant
`
`VERIFIED COMPLAINT - 1
`
`
`
`
`
`
` No. ______________________
`
`
`
`
`VERIFIED COMPLAINT
`
`(JURY DEMAND REQUESTED)
`
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 2 of 19
`
`
`
`
`
`Plaintiff Parler LLC (“Parler”), by its undersigned counsel, alleges, and by
`
`its Chief Operating Officer, verifies, as follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This is a civil action for injunctive relief, including a temporary
`
`restraining order and preliminary injunctive relief, and damages. Last Month,
`
`Defendant Amazon Web Services, Inc. (“AWS”) and the popular social media
`
`platform Twitter signed a multi-year deal so that AWS could support the daily
`
`delivery of millions of tweets. AWS currently provides that same service to Parler,
`
`a conservative microblogging alternative and competitor to Twitter.
`
`2. When Twitter announced two evenings ago that it was permanently
`
`banning President Trump from its platform, conservative users began to flee
`
`Twitter en masse for Parler. The exodus was so large that the next day, yesterday,
`
`Parler became the number one free app downloaded from Apple’s App Store.
`
`3.
`
`Yet last evening, AWS announced that it would suspend Parler’s
`
`account effective Sunday, January 10th, at 11:59 PM PST. And it stated the reason
`
`for the suspension was that AWS was not confident Parler could properly police its
`
`platform regarding content that encourages or incites violence against others.
`
`However, Friday night one of the top trending tweets on Twitter was “Hang Mike
`
`Pence.” But AWS has no plans nor has it made any threats to suspend Twitter’s
`
`account.
`
`VERIFIED COMPLAINT - 2
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 3 of 19
`
`
`
`4.
`
`AWS’s decision to effectively terminate Parler’s account is apparently
`
`motivated by political animus. It is also apparently designed to reduce competition
`
`in the microblogging services market to the benefit of Twitter.
`
`5.
`
`Thus, AWS is violating Section 1 of the Sherman Antitrust Act in
`
`combination with Defendant Twitter. AWS is also breaching it contract with
`
`Parler, which requires AWS to provide Parler with a thirty-day notice before
`
`terminating service, rather than the less than thirty-hour notice AWS actually
`
`provided. Finally, AWS is committing intentional interference with prospective
`
`economic advantage given the millions of users expected to sign up in the near
`
`future.
`
`6.
`
`This emergency suit seeks a Temporary Restraining Order against
`
`Defendant Amazon Web Services to prevent it from shutting down Parler’s account
`
`at the end of today. Doing so is the equivalent of pulling the plug on a hospital
`
`patient on life support. It will kill Parler’s business—at the very time it is set to
`
`skyrocket.
`
`JURISDICTION AND VENUE
`
`7.
`
`This Court has subject matter jurisdiction over Parler’s federal
`
`antitrust claims under 28 U.S.C. §§ 1331 and 1337, as well as under 15 U.S.C. §
`
`26. The Court has supplemental jurisdiction over Parler’s state law claims under
`
`28 U.S.C. § 1367.
`
`VERIFIED COMPLAINT - 3
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 4 of 19
`
`
`
`8.
`
`This Court has personal jurisdiction over AWS as it is headquartered
`
`in the District. Also, AWS has engaged in sufficient minimum contacts with the
`
`United States and has purposefully availed itself of the benefits and protections of
`
`both United States and Washington law such that exercise of jurisdiction over AWS
`
`would comport with due process requirements.
`
`9.
`
`Venue lies in this District under 28 U.S.C. § 1391(b) because AWS
`
`maintains its principal place of business in the State of Washington and in this
`
`District, and because a substantial part of the events giving rise to Parler’s claims
`
`occurred in this District. Personal jurisdiction and venue may also be deemed
`
`proper under 15 U.S.C. § 22, because AWS may be found in or transacts business
`
`in this District.
`
`PARTIES
`
`10. Plaintiff Parler LLC is a Nevada limited liability corporation with its
`
`principal place of business in Henderson, Nevada. Parler is “the solution to
`
`problems that have surfaced in recent years due to changes in Big Tech policy
`
`influenced
`
`by
`
`various
`
`special-interest
`
`groups.”
`
`Our
`
`Company,
`
`https://company.parler.com. Thus, “Parler is built upon a foundation of respect for
`
`privacy and personal data, free speech, free markets, and ethical, transparent
`
`corporate policy.” Id.
`
`VERIFIED COMPLAINT - 4
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 5 of 19
`
`
`
`11.
`
` Defendant Amazon Web Services, Inc., an Amazon.com, Inc.
`
`company, is a Delaware corporation with its principal place of business in Seattle,
`
`Washington. AWS is the world’s leading cloud service providers, capturing a third
`
`of the global market. See Global Cloud Infrastructure Market Q3 2020,
`
`https://www.canalys.com/newsroom/worldwide-cloud-market-q320. This is almost
`
`double the next largest competitor, and equal to the next three largest competitors
`
`combined. Id. AWS generates tens of billions of dollars in revenue annually. Id.
`
`12. According to its own press release, “[f]or 14 years, [AWS] has been the
`
`world’s most comprehensive and broadly adopted cloud platform.” Twitter Selects
`
`AWS as Strategic Provider to Serve Timelines, Press Center, Amazon, (Dec. 15,
`
`2020), https://press.aboutamazon.com/news-releases/news-release-details/twitter-
`
`selects-aws-strategic-provider-serve-timelines. That
`
`is why
`
`“[m]illions of
`
`customers—including the fastest-growing startups, largest enterprises, and leading
`
`government agencies—trust AWS to power their infrastructure, become more agile,
`
`and lower costs.” Id. In short, AWS is the Rolls Royce of cloud platform providers.
`
`FACTS
`
`13. Parler contracts with AWS to provide the cloud computing services
`
`Parler needs for its apps and website to function on the internet. Further, that both
`
`the apps and the website are written to work with AWS’s technology. To have to
`
`switch to a different service provider would require rewriting that code, meaning
`
`VERIFIED COMPLAINT - 5
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 6 of 19
`
`
`
`Parler will be offline for a financially devastating period.
`
`14. Parler is also a competitor of Twitter as both provide a similar
`
`platform for users to communicate with short messages, links, and pictures. Like
`
`many social media platforms, Parler’s business model is not based on subscription
`
`fees.
`
`15. Less than a month ago, AWS announced with a press release a new
`
`multi-year deal with Twitter. AWS will “provide global cloud infrastructure to
`
`deliver Twitter timelines.” Twitter Selects AWS as Strategic Provider to Serve
`
`Timelines,
`
`Press
`
`Center,
`
`Amazon,
`
`(Dec.
`
`15,
`
`2020),
`
`https://press.aboutamazon.com/news-releases/news-release-details/twitter-
`
`selects-aws-strategic-provider-serve-timelines.
`
`16. According to the deal, “Twitter will leverage AWS’s proven
`
`infrastructure and portfolio of services to support delivery of millions of daily
`
`Tweets.” Id. Further, “[t]his expansion onto AWS marks the first time that Twitter
`
`is leveraging the public cloud to scale their real-time service.” Id. This deal “buil[t]
`
`on the companies’ more than decade-long collaboration, where AWS continues to
`
`provide Twitter with storage, compute, database, and content delivery services to
`
`support its distribution of images, videos and ad content.” Id. What is more,
`
`together “Twitter and AWS will create an architecture that extends Twitter’s on-
`
`VERIFIED COMPLAINT - 6
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 7 of 19
`
`
`
`premises infrastructure to enable them to seamlessly run and scale the real-time
`
`service globally, increase its reliability . . ., and rapidly move new features into
`
`production around the world.” Id.
`
`17. At the same time, Parler began to significantly increase its usership
`
`at the expense of Twitter. After the election in November, the New York Times
`
`reported that “millions have migrated to alternative social media and media sites
`
`like Parler . . . .” Mike Isaac & Kellen Browning, Fact-Checked on Facebook and
`
`Twitter, Some Conservatives Switch Their Apps, NY Times (Nov. 18, 2020),
`
`https://www.nytimes.com/2020/11/11/technology/parler-rumble-newsmax.html. In
`
`fact, less than a week after Election Day, between November 3rd and November
`
`8th, Parler’s app experienced nearly one million downloads. See Parler, A
`
`Conservative Twitter Clone, Has Seen Nearly 1 Million Downloads Since Election
`
`Day,
`
`The
`
`Verge
`
`(Nov.
`
`9,
`
`2020),
`
`https://www.theverge.com/2020/11/9/21557219/parler-conservative-app-download-
`
`new-users-moderation-bias. This resulted in Parler rocketing to be “the #1 free app
`
`in the iOS App Store, up from #1,023” just a week earlier. Id. Likewise, in that
`
`same week the Parler app went from 486th to 1st in the Google Play rankings. Id.
`
`Not surprisingly, “the app was the 10th most downloaded social media app in 2020
`
`with 8.1 million new installs.” Jonathan Schieber, Parler Jumps to No. 1 on App
`
`Store after Facebook and Twitter Ban Trump, TechCrunch (Jan. 9, 2021),
`
`VERIFIED COMPLAINT - 7
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 8 of 19
`
`
`
`https://techcrunch.com/2021/01/09/parler-jumps-to-no-1-on-app-store-after-
`
`facebook-and-twitter-bans/.
`
`18.
`
`In 2021, this trend not only continued, it accelerated, thanks to
`
`Twitter’s announcement two days ago that it would permanently ban President
`
`Trump from its platform. Id. On that day, last Friday, Parler saw installs increase
`
`in the United States by 355%. Id. After Twitter’s announcement, conservative
`
`politicians and media figures began encouraging their followers to switch to Parler.
`
`See Yelena Dzhanova, Top Conservative Figures are Tweeting to Advertise their
`
`Parler Accounts After Trump was Permanently Banned from Twitter, Business
`
`Insider (Jan. 9, 2021), https://www.businessinsider.com/top-conservatives-moving-
`
`to-parler-after-trumps-ban-from-twitter-2021-1. See also Joseph A. Wulfsohn,
`
`Conservatives Flee to Parler Following Twitter’s Permanent Suspension of Trump,
`
`Fox News (Jan. 9, 2021), https://www.foxnews.com/media/conservatives-join-
`
`parler-twitter-trump-ban.
`
`19.
`
`Speculation began to mount that President Trump would likewise
`
`move to Parler. Id. Given the close to 90 million followers the President had on
`
`Twitter, this would be an astronomical boon to Parley and a heavy blow to Twitter.
`
`See Donald J. Trump (@realDonaldTrump) Twitter Statistics, Socialbakers,
`
`https://www.socialbakers.com/statistics/twitter/profiles/detail/25073877-
`
`realdonaldtrump.
`
`VERIFIED COMPLAINT - 8
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 9 of 19
`
`
`
`20. Given the context of Parler’s looming threat to Twitter and the fact
`
`that the Twitter ban might not long muzzle the President if he switched to Parler,
`
`potentially bringing tens of millions of followers with him, AWS moved to shut
`
`down Parler. See id.
`
`21. Yesterday evening, at 6:07 pm PST, web news site BuzzFeed posted
`
`an article with screenshots of a letter from AWS to Parler, informing Parler that
`
`its account would be suspended at 11:59 pm PST on Sunday, less than thirty hours
`
`later. See John Paczkowski, Amazon Is Booting Parler Off of Its Web Hosting
`
`Service,
`
`BuzzFeed
`
`(Jan.
`
`9,
`
`2021),
`
`https://www.buzzfeednews.com/article/johnpaczkowski/amazon-parler-aws.
`
`Strangely, the article with the letter was posted before Parler itself received the
`
`letter in an email, received at 7:19 pm PST, over an hour after the BuzzFeed article
`
`went online, meaning AWS leaked the letter to BuzzFeed before sending it to
`
`Parler. See Exhibit A.
`
`22. Last evening, the Associated Press reported that “Parler may be the
`
`leading candidate” for President Trump after his Twitter ban as “[e]xperts had
`
`predicted Trump might pop up on Parler . . . .”). Frank Bajak, Squelched by Twitter,
`
`Trump Seeks New Online Megaphone, Associated Press (Jan. 9, 2021),
`
`https://apnews.com/article/donald-trump-politics-media-social-media-coronavirus-
`
`pandemic-f5b565ca93a792640211e6438f2db842. However, the AP also observed
`
`VERIFIED COMPLAINT - 9
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 10 of 19
`
`
`
`that “Amazon struck [a] blow Saturday [against the chances of Trump adopting
`
`the platform], informing Parler it would need to look for a new web-hosting service
`
`effective midnight Sunday.” Id.
`
`23. This death blow by AWS could not come at a worse time for Parler—
`
`a time when the company is surging with the potential of even more explosive
`
`growth in the next few days. Worse than the timing is the result—Parler has tried
`
`to find alternative companies to host it and they have fallen through. It has no
`
`other options. Without AWS, Parler is finished as it has no way to get online. And
`
`a delay of granting this TRO by even one day could also sound Parler’s death knell
`
`as President Trump and others move on to other platforms.1 It is no wonder, then,
`
`that competitor Twitter’s CEO has heartily endorsed efforts to remove Parler from
`
`the public sphere. See Kevin Shalvey, Parler’s CEO John Matze Responded Angrily
`
`After Jack Dorsey Endorsed Apple’s Removal of the Social Network Favored by
`
`Conservatives,
`
`Busines
`
`Insider
`
`(Jan.
`
`10,
`
`2021),
`
`https://www.businessinsider.com/parler-john-matze-responded-angrily-jack-
`
`dorsey-apple-ban-2021-1.
`
`
`1 AWS indefinitely suspending Parler’s account is categorically different than Google or Apple
`dropping Parler from their app stores. In the instance of the latter, existing Parler users can still use
`its app—it’s just harder for Parler to sign up new users. But with AWS’s move, both existing users
`and new users are completely prevented from using the app until Parler can find some other service
`to replace AWS. Users are also prevented from using Parler’s website, which is likewise dependent
`upon AWS.
`
`
`VERIFIED COMPLAINT - 10
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 11 of 19
`
`
`
`24. Parler’s rival social media apps, such as conservative-oriented Gab or
`
`conservative media Rumble, are also experiencing record growth right now. See
`
`Isaac & Browning, Fact-checked on Facebook and Twitter, supra. If Parler is not
`
`available, people will turn to alternatives, or perhaps return to Twitter or
`
`Facebook. What is more, Parler’s current users are likely to leave and go to another
`
`platform if Parler is down for an indefinite period. And once those users have begun
`
`to use another platform, they may not return to Parler once it’s back online.
`
`25. And by silencing Parler, AWS silences the millions of Parler users
`
`who do not feel their free speech is protected by Twitter or other social media apps.
`
`26. What is more, by pulling the plug on Parler but leaving Twitter alone
`
`despite identical conduct by users on both sites, AWS reveals that its expressed
`
`reasons for suspending Parler’s account are but pretext. In its note announcing the
`
`pending termination of Parler’s service, AWS alleged that “[o]ver the past several
`
`weeks, we’ve reported 98 examples to Parler of posts that clearly encourage and
`
`incite violence.” Exhibit A. AWS provide a few examples, including one that stated,
`
`“How bout make them hang?”, followed by a series of hashtags, including “#fu--
`
`mikepence.” Id.
`
`27. AWS further stated to Parler that the “violent content on your website
`
`. . . violates our terms.” Id. Because, AWS declared, “we cannot provide services to
`
`a customer that is unable to effectively identify and remove content that
`
`VERIFIED COMPLAINT - 11
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 12 of 19
`
`
`
`encourages or incites violence against others,” AWS announced the pending
`
`termination of Parler’s account. Id.
`
`28. However, the day before, on Friday, one of the top trends on Twitter
`
`was “Hang Mike Pence,” with over 14,000 tweets. See Peter Aitken, ‘Hang Mike
`
`Pence’ Trends on Twitter After Platform Suspends Trump for Risk of ‘Incitement of
`
`Violence’, Fox News (Jan. 9, 2021), https://www.foxnews.com/politics/twitter-
`
`trending-hang-mike-pence. And earlier last week, a Los Angeles Times columnist
`
`observed that Twitter and other social media platforms are partly culpable for the
`
`Capital Hill riot, by allowing rioters to communicate and rile each other up. See
`
`Erika D. Smith, How Twitter, Facebook are Partly Culpable for Trump DC Riot,
`
`LA Times (Jan. 6, 2021), https://www.latimes.com/california/story/2021-01-06/how-
`
`twitter-facebook-partly-culpable-trump-dc-riot-capitol. Yet these equivalent, if not
`
`greater, violations of AWS’s terms of service by Twitter have apparently been
`
`ignored by AWS.
`
`29. AWS knew its allegations contained in the letter it leaked to the press
`
`that Parler was not able to find and remove content that encouraged violence was
`
`false—because over the last few days Parler had removed everything AWS had
`
`brought to its attention and more. Yet AWS sought to defame Parler nonetheless.
`
`And because of AWS false claims, leaked to the public, Parler has not only lost
`
`current and future customers, but Parler has also been unable to find an
`
`VERIFIED COMPLAINT - 12
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 13 of 19
`
`
`
`alternative web hosting company. In short, AWS false claims have made Parler a
`
`pariah.
`
`Count One: Sherman Act, Section 1
`
`AWS is prohibited from contracting or conspiring to restrain trade or
`commerce.
`
`30. Parler restates, re-alleges, and incorporates by reference each of the
`
`allegations set forth in the rest of this Complaint as if fully set forth herein.
`
`31.
`
`Section 1 of the Sherman Act prohibits “[e]very contract, combination
`
`in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce .
`
`. .” 15 U.S.C. § 1. “To state a claim under Section 1, a plaintiff must allege facts
`
`that, if true, will prove: (1) the existence of a conspiracy, (2) intention on the part
`
`of
`
`the
`
`co-conspirators
`
`to
`
`restrain
`
`trade, and
`
`(3) actual
`
`injury
`
`to
`
`competition.” Coalition For ICANN Transparency, Inc. v. VeriSign, Inc., 611 F.3d
`
`495, 501-02 (9th Cir. 2010).
`
`32. Less than a month ago, AWS and Parler’s competitor, Twitter,
`
`entered into a multi-year deal. Late Friday evening, Twitter banned President
`
`Trump from using its platform, thereby driving enormous numbers of its users to
`
`Parler. Twenty-four hours later, AWS announced it would indefinitely suspend
`
`Parler’s account.
`
`33. AWS’s reasons for doing so are not consistent with its treatment of
`
`Twitter, indicating a desire to harm Parler.
`
`VERIFIED COMPLAINT - 13
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 14 of 19
`
`
`
`34. By suspending Parler’s account, AWS will remove from the market a
`
`surging player, severely restraining commerce in the microblogging services
`
`market.
`
`35. AWS’s actions violate the Sherman Act, 5 U.S.C. § 1.
`
`36. Parler is entitled to injunctive relief.
`
`Count Two: Breach of Contract
`
`AWS breached its contract with Parler by not providing thirty days’
`notice before terminating its account.
`
`37. Parler restates, re-alleges, and incorporates by reference each of the
`
`
`
`allegations set forth in the rest of this Complaint as if fully set forth herein.
`
`38. Under Washington law, “[a] breach of contract is actionable only if the
`
`contract imposes a duty, the duty is breached, and the breach proximately causes
`
`damage to the claimant.” See Northwest Independent Forest Mfrs. v. Dept. of Labor
`
`and Industries, 78 Wn. App. 707, 712, 899 P.2d 6 (1995).
`
`39. The AWS Customer Agreement with Parler allows either party to
`
`terminate the agreement “for cause if the other party is in material breach of this
`
`Agreement and the material breach remains uncured for a period of 30 days from
`
`receipt of notice by the other party.” Exhibit B.
`
`40. On January 8, 2021, AWS brought concerns to Parler about user
`
`content that encouraged violence. Parler addressed them, and then AWS said it
`
`was “okay” with Parler.
`
`VERIFIED COMPLAINT - 14
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 15 of 19
`
`
`
`41. The next day, January 9, 2021, AWS brought more “bad” content to
`
`Parler and Parler took down all of that content by the evening.
`
`42. Thus, there was no uncured material breach of the Agreement for 30
`
`days, as required for termination.
`
`43. Further, while AWS used the term “suspension” in its notice to Parler,
`
`it stated that it would “ensure that all of your data is preserved for you to migrate
`
`to your own servers, and will work with you as best as we can to help your
`
`migration.” Exhibit A. This is not action AWS would take for a temporary
`
`suspension, but rather for a permanent termination. Thus, whatever words AWS
`
`used, it was terminating the Agreement with Parler.
`
`44. This termination will immediately make it impossible for Parler to have
`
`an online presence for at least a week, depriving Parler’s current users of any use
`
`of the app and website, and completely preventing any new users from
`
`downloading and using the app, or the website.
`
`45. Thus, AWS will have breached its contract with and harmed Parler.
`
`Further, lost future profits in this case are difficult to calculate due to the rapidly
`
`increasing nature of Parler’s user base. That’s because “[t]he usual method for
`
`proving lost profits is to establish profit history.” Tiegs v. Watts, 135 Wash.2d 1
`
`(1998). But that history will, at best, undervalue the future given how quickly
`
`Parler is growing. And at worst, Parler will get nothing as “[l]ost profits cannot be
`
`VERIFIED COMPLAINT - 15
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 16 of 19
`
`
`
`recovered where they are speculative, uncertain and conjectural” because “[t]he
`
`amount of lost profits must be established with reasonable certainty.” Id. Thus,
`
`money damages may not be available, but at the least are insufficient to make
`
`Parler whole.
`
`46. Parler is entitled to injunctive relief.
`
`Count Three: Tortious Interference with a Contract or Business
`Expectancy
`
`By terminating Parler’s account, AWS will intentionally interfere with
`the contracts Parler has with millions of its present users, as well as
`with the users it is projected to gain this week.
`
`47. Parler restates, re-alleges, and incorporates by reference each of the
`
`allegations set forth in the rest of this Complaint as if fully set forth herein.
`
`48. In Washington, “[t]he elements of tortious interference with a contract
`
`or expectancy are: (1) the existence of a valid contractual relationship or business
`
`expectancy; (2) the defendant’s knowledge of that relationship; (3) an intentional
`
`interference inducing or causing a breach or termination of the relationship or
`
`expectancy; (4) the defendant's interference for an improper purpose or by
`
`improper means; and (5) resulting damage.” Koch v. Mutual of Enumclaw Ins. Co.,
`
`108 Wn. App. 500, 506, 31 P.3d 698 (2001).
`
`49. Parler currently has over 12 million users under contract. It expects to
`
`add millions more this week given its growth the last few days and the growing
`
`voice of conservatives encouraging their Twitter followers to switch to Parler.
`
`VERIFIED COMPLAINT - 16
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 17 of 19
`
`
`
`50. AWS is aware of Parler’s user numbers and current trends. AWS also
`
`knew that Parler was negotiating with it to increase its server capacity given this
`
`ongoing and expected growth. AWS also knew of public speculation that Trump,
`
`with his nearly 90 million Twitter followers, was going to switch to Parler, likely
`
`bringing many of those followers with him. Finally, AWS also knew from public
`
`statements that Parler was about to go to the market to raise money.
`
`51. AWS intentionally will interfere with Parler’s current contracts and
`
`future expected customer relationships by terminating Parler’s Agreement with it
`
`under the pretext that Parler was in violation of that contract when AWS knew
`
`Parler was not in violation (and when Twitter was engaging in identical conduct
`
`but AWS did not terminate its contract with Twitter).
`
`52. Parler will be severely damaged financially and reputationally if it
`
`must go offline Sunday at midnight because AWS terminates Parler’s account. As
`
`noted above, given the speculative nature of Parler’s financial and reputational
`
`damages, money damages will not make it whole.
`
`53. Therefore, Parler is entitled to injunctive relief.
`
`PRAYER FOR RELIEF
`
`Plaintiff respectfully requests that the Court:
`
`A. Grant Parler’s motion for a Temporary Restraining Order and order AWS to
`
`maintain Parler’s account until further notice from this Court, and to refrain from
`
`VERIFIED COMPLAINT - 17
`
`
`
`
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 18 of 19
`
`suspending, terminating or failing to provide any services previously provided
`
`under Parler’s customer agreement with AWS.
`
`B. Grant Parler damages, including trebled damages, in an amount to be
`
`determined at trial.
`
`C. Grant Parler such other relief as the Court deems just and proper.
`
`///
`
`///
`
`///
`
`///
`
`Dated: January 10, 2021.
`
`Respectfully submitted,
`
`/s David J. Groesbeck
`WSBA No. 24749
`DAVID J. GROESBECK, P.S.
`1716 Sylvester St. SW
`Olympia, WA 98501
`(509) 747-2800
`david@groesbecklaw.com
`
`621 W. Mallon Ave., Suite 507
`Spokane, WA 99201
`
`Counsel for Plaintiff
`
`VERIFIED COMPLAINT - 18
`
`David J. Groesbeck, P.S.
`Attorney and Counselor
`1716 Sylvester St. SW
`Olympia, Washington 98501
`(509) 747-2800
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`29
`30
`31
`32
`
`
`
`Case 2:21-cv-00031-BJR Document 1 Filed 01/11/21 Page 19 of 19
`
`VERIFICATION
`I, John Matze, say that I am the Chief Executive Officer of Parler LLC in the
`
`case captioned Parler LLC v. Amazon Web Services, Inc., in the U.S. District Court
`
`for the Western District of Washington, and have authorized the filing of this
`
`complaint. I have reviewed the allegations made in the complaint, and to those
`
`allegations of which I have personal knowledge, I know them to be true. As to those
`
`allegations of which I do not have personal knowledge, I believe them to be true.
`
`Dated: January 10, 2021
`
`Verified by:
`
`John Matze
`Chief Executive Officer, Parler LLC
`
`