Google faces new complaint in anti-trust probe



Google faces more questions over how it dealt with other search engines



 

A new complaint about Google's alleged anti-competitive behaviour has been filed by specialist French search engine 1plusV.

It follows similar complaints from price comparison site Foundem and legal search engine ejustice.fr last year.
Those triggered a European Commission probe into Google's business practices, which is ongoing.
Google said it was working with the EC, adding that there "was always room for improvement".
"We have been working closely with the European Commission to explain many different parts of our business. While we have always tried to do the right thing for our users and advertisers, we recognise that there's always room for improvement," the firm said in a statement.
Delisted sites 1plusV is the parent company of of eJustice.fr and runs so-called vertical search engines that specialise in law, music and culture.
It said that between 2006 and 2010 Google prevented vertical search firms from using its online advertising service AdSense.
"This is the only truly effective way of obtaining targeted advertising on a search engine," 1plusV said in a statement.
It also alleges that, in the weeks following the original complaint, Google delisted sites published by it.
"For eJustice.fr, Google's decision to remove it from its search results was catastrophic in terms of its traffic," it said.
Google has said that ranking on its search results depends on how valuable a given site is for its users.
It has told companies to improve their websites to help move them up the rankings.
But 1plusV said that eJustice.fr was relisted in December, without modification.
"The relisting is in complete contradiction with the Google argument that eJustice.fr was delisted because it provided no value to the internet user," 1plusV said.
The European Commission said it would give Google the opportunity to comment on the allegations before deciding what action to take.
If Google is found guilty of abusing its dominant position in the search or advertising markets it could face a hefty fine.

Microsoft takes Google complaint to EU



Microsoft claims that Google has tried to restrict its growth in the search market



 

Microsoft is to take an anti-competition complaint against Google to the European Commission.

The software maker claims that Google used its dominant position in the search market to restrict the growth of Microsoft services.
It cites a number of practices, including Google limiting the ability of Microsoft Bing to index web content.
Google said it was not surprised by the move and would happily explain itself.
In a detailed blog, Microsoft's general counsel, Brad Smith, outlined the company's grievances.
He wrote: "Our filing today focuses on a pattern of actions that Google has taken to entrench its dominance in the markets for online search and search advertising to the detriment of European consumers."
The post goes on to list five different ways in which Google, according to Microsoft, has sought to control the search market.
Those are:

• Using technical measures to stop Microsoft's search engine Bing from indexing content on Google-owned YouTube.
• Blocking Microsoft Smartphones from operating properly with YouTube.
• Controlling access to online copies of out-of-copyright books.
• Limiting the ability of businesses to reclaim "their own information" generated through Google advertising campaigns for use elsewhere.
• Compelling leading websites to only use Google search boxes on their pages.

Heavy fines The European Commission launched an investigation into allegations of anti-competitive practices by Google last November, at the behest of several internet companies, including Ciao, a shopping site owned by Microsoft.


Microsoft's Bing search engine suffered because of Google's actions, it alleges



 

It is likely, if the Commission accepts the latest round of complaints from Microsoft, that they would be rolled into the same investigation.
For the Microsoft case to be accepted, the company would have to prove two things - firstly that Google was dominant in a particular market, namely search, and secondly that it had abused that position.
In a statement, Google said it would cooperate with any investigation.
"We're not surprised that Microsoft has done this, since one of their subsidiaries was one of the original complainants. For our part, we continue to discuss the case with the European Commission and we're happy to explain to anyone how our business works," is stated.
Penalties for companies found to have engaged in anti-competitive practices in Europe can be severe. The EC has the power to impose fines up to 10% of global earnings.
That will likely have a bearing on how the case proceeds, according to Mark Tricker, an antitrust lawyer with the law firm Norton Rose.
He told BBC News: "Once the Commission has formulated its claims then I suspect that Google will enter into a dialogue with them to address those concerns so it does not have to reach a judgement."
Role reversal Microsoft's position as accuser in an anti-competition case is something of a role reversal.
In the past, the world's leading software company has been the target of similar actions.
A 2003 EC ruling determined that Microsoft had unfairly advantaged its Windows Media Player software over other streaming technologies by embedding it into the Windows operating system.
It was fined £381m, followed by a further £194m in 2006 for failing to comply with elements of the original ruling.
To date, the largest fine levied by the EC was £948m against Intel in 2009.
The microchip maker was found to have offered financial incentives to manufacturers to favour its products over those of its rivals.

Google's advertising system under US investigation

Google makes most of it's money from advertising(adsense)

Continue reading the main story Google's advertising system is being investigated by the US Justice Department, the company has revealed.

The internet search giant added that it had put aside $500m (£306m) to settle any potential charges.
The investigation is looking at how Google's automated advertising system treats some unnamed advertisers.
A separate study is continuing to be carried out by the European Commission. Google's advertising revenues hit $8.3bn in the first quarter of 2011.
Accusations Google revealed the Justice Department investigation in a regulatory filing to the US financial watchdog, the Securities and Exchange Commission.
It said that as a result of putting aside the $500m, its net profit for the first three months of this year would be less than first reported in April, falling to $1.8bn from $2.3bn.
Google said in a statement: "Although we cannot predict the ultimate outcome of this matter, we believe it will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows."
The Justice Department has yet to comment.
The European Commission's continuing anti-competition investigation into Google was launched in November of last year.
It was started after Google's search engine rivals complained that the firm had abused its dominant position.
Among a number of accusations, rivals including Microsoft's Bing have accused Google of manipulating its search results to promote its own services, and discourage firms from advertising with other search engines.
It is not yet known whether the US Justice Department's investigations concern accusations of anti-competition practices, or if they follow a complaint from a rival of Google.