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February 23, 2010 5:04 PM PST

EU to investigate Google after complaints

by Tom Krazit

And so it begins: the European Commission has opened an antitrust investigation of Google.

The Telegraph reported late Tuesday that European regulators have sent a letter to Google asking the company to explain how it ranks search results and advertising after complaints from European businesses such as Foundem, a price comparison site, and Ciao, another price comparison site owned by Microsoft. Those companies--Foundem in particular--have long complained that Google penalized their Web sites in search results under competitive pressure.

Google confirmed that it has received an inquiry from European regulators but denied any wrongdoing. "While we will be providing feedback and additional information on these complaints, we are confident that our business operates in the interests of users and partners, as well as in line with European competition law," the company said in a blog post.

It seemed like only a matter of time before a major regulatory agency opened a formal review of Google. The company has faced extreme scrutiny over the past several years as it has come to dominate the Internet. Google's share of the search and search advertising markets in Europe is even higher--around 90 percent--than it is in the U.S., where Google has come to know its regulatory counterparts quite well during the first year of the Obama administration.

In August, Foundem complained that Google was penalizing its site in search results, suggesting it was because the company was threatened by Foundem's business model. Google denied any ill intent at that time, saying that Foundem was just like any other Web site in that it needed to produce relevant content to stay in the top search results.

In its blog post Tuesday, Google implied that the complaints from Ciao were directed from Microsoft, easily its biggest rival in the tech industry. "Regarding Ciao!, they were a long-time AdSense partner of Google's, with whom we always had a good relationship. However, after Microsoft acquired Ciao! in 2008 (renaming it Ciao! from Bing) we started receiving complaints about our standard terms and conditions," Google said.

Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.
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Add a Comment (Log in or register) (26 Comments)
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by slickuser February 23, 2010 5:25 PM PST
another $1b in their pockets.. EU is in good business screwing American companies..
Reply to this comment
by solitare_pax February 24, 2010 3:12 AM PST
That sounds about right.

But then, maybe these offended complainers should stop crying like babies and innovate?

There's a novel idea for you.
3 people like this comment
by makardhwaj February 24, 2010 5:13 AM PST
@solitare_pax, I am not concerned about companies or individuals- Americans or otherwise. However, what do you mean by innovate? Google is as innovative as any other company at this stage. Maybe in the future they will turn into Behemoths only capable of acquiring and not innovating. But they hardly seem like they are crying like babies. They are appealing to the public opinion- which, by the way, should lay foundation to any "free" world. I don't much care for what comes out of this but I hope innovation is rewarded and not stifled because some fascists feel threatened by a company that collects a little less information than they do.
by aMUSICsite February 24, 2010 5:57 AM PST
They don't just go after US companies.
1 person likes this comment
by t8 February 25, 2010 12:42 AM PST
It's American companies complaining about American companies.
by gerrrg February 23, 2010 5:33 PM PST
See, when China does it, they use malware to grab intellectual property. The EU is above that; they just force you to fork it over to them under the guise of governance.
Reply to this comment
by AluminumMonster February 23, 2010 5:40 PM PST
EU needs another loan, so lets go after another company.
Reply to this comment
by gggg sssss February 23, 2010 5:41 PM PST
ROTFLMAO The E Who?

So what if Google penalizes someone. Are foundem paying for any of this? Thought not.
Reply to this comment
by monkeyfun14 February 23, 2010 5:44 PM PST
A search engine penalizing sites for seemingly no reason but being competitors is not a search engine I would want to get my results from.
4 people like this comment
by gggg sssss February 23, 2010 6:04 PM PST
@ by monkeyfun14 then use something else...baidu comes to mind. THAT woudl be relevant. . If YOU were paying google then you may have a point. If the EU were paying google to plug their cr*p then the EU may have a point. But you are getting something for free. Dont like it, dont use it.
2 people like this comment
by martin1212 February 24, 2010 10:50 PM PST
@gggg, what a weak argument you make. You say you don't care if Google manipulates the ranking. That's a pretty astonishing thing to say, but it is also missing the point. The point is that Google claims they are *not* penalizing anyone. So if they are, they are lying, and that is not ok.
by gggg sssss February 25, 2010 6:40 PM PST
@ martin1212 where does it say that corporate lying is wrong - it there is no cost involved. Again, dont use it. Use, as i said before, baidu, or whatever it is the French are flogging. That will obviously suit you better.
by cloudmatt February 23, 2010 8:01 PM PST
When they made a big deal about IE in windows I thought it was kinda stupid but I could see the point. Most users are lucky to find the program let alone install something they probably never heard of. Intel had it coming IMHO. This is just stupid though. Google is first and foremost an advertiser getting tons of cash promoting stuff. You pay more you show more simple math.
Reply to this comment
by Scottling February 25, 2010 4:01 PM PST
Thank Opera for the balot screen in Windows in Europe. Why though is it acceptable for Safari to come preinstalled on every Mac but not IE on WIndows? But back to Google, I think the entire "Don't be evil." mantra is relative to the profit they make on advertising.
by Henaway February 23, 2010 9:08 PM PST
Awww, so whiney ********* SEO companies can't figure out how to farm the latest Google seach methodologies and cry anti-trust. Guess what - it's a damn corporation. It's their business. It's not harming a single user if they re-arrange how they come up with MORE RELEVANT RESULTS if it means I'm not going to have to shuffle three pages in to get some meaningful content.

Awww, Google lowered my page rank, and my old, SEO keyword crammed crap site isn't getting the traffic it used too. Boo freakin' hoo. Go cry to Bing and pay Microsoft to bump your listings up. They're the greedy sort who listen to talking money.

So long as Google keeps giving ME, as a USER, better results, I'll keep on using them. But when the governments around the world start telling them how to do their jobs, and inform all the spam-loving SEO keyword cramming miscreants how to farm the results so I get bad results ... I'll have to switch to someone else.

I use Google because they give me relevant results fast ... not because they tell underhanded web designers how to spam their way to the top of the results page.
Reply to this comment
by jweikel February 24, 2010 6:37 AM PST
I couldn't have said it better myself. The only problem with Google removing results due to competition is when it impacts their ability to generate relevant searches. Until then, I'll keep Googling....I mean searching. It's their business and they can run it how they want - they're not a public service funded by taxpayer money.
by bugma302 February 24, 2010 2:17 AM PST
Interestingly, or not, Foundem appears on page 3 of my Google search and hasn't appeared at all by the time I get to page 10 in Bing.
I think someone needs to learn to optimize.
Reply to this comment
by sensi2 February 24, 2010 4:47 AM PST
They told in another article that the ranking problem occurred until last december.
by sensi2 February 24, 2010 4:38 AM PST
I am always appalled by the bliss ignorance of the anti-EU crowd over CNET. There are laws over there, and a judiciary system that isn't as corrupted as the US one. Standard procedures, inquiries after -legitimate or no- complains (from two US -Microsoft- owned companies among the three...), etc, only a dishonest and ignorant '**** would want to invent a nationalist issue over that... Get a life or at least get your facts straight.
Reply to this comment
by Chaku01 February 24, 2010 9:31 AM PST
Even more, I'd say it's hilarious. I'm waiting for the frustrated 2 celled brain genius pointing out the small english mistakes in the posts... It happens when you learn more than one language you know.

Anyways, these comments are clearly non-sense from pre-pubescent nerds. I hope there are still some people out there with something constructive to say. If I remember well, when Intel was being probed, comments were "why not google???" and indeed, with an overwhelming part of the market and complaints from it's US competitors, voil?, the investigation starts.

And btw, if you think Google will give any real relevant business secrets in its explanation to the court, you're not only pre pubescent but clearly dumb.
1 person likes this comment
by moviegeek65 February 24, 2010 9:23 AM PST
Another pay to play scheme from the EU, Google will be extorted..er I mean fined soon.
Reply to this comment
by moviegeek65 February 24, 2010 9:26 AM PST
I forgot to mention that Google will probably be forced to offer a screen to choose other search websites(ala Windows).
by t8 February 24, 2010 4:31 PM PST
Microsoft used SCO to attack Linux and now the are using Ciao to attack Google Search.

Ciao.
Reply to this comment
by PatrickEB February 27, 2010 3:49 AM PST
Actually a whole range of forms of corporate lying are illegal. Lying about the income of a company or the projected income. Lying to a court, lying to judicial and executive investigations.

If you don't believe it, go and find out for yourself. You obviously need to learn by yourself and in your own time.

Weirdly, corporate lying is covered by a collection of laws in various OECD countries and is punishable within those various countries.

Strangely enough, most people appear to understand that corporate lying is an offence.
Reply to this comment
by PatrickEB February 27, 2010 3:56 AM PST
I'd suggest not arguing with those who fail to grasp reality.

It's a fairly futile process. They cannot understand that if what is alleged about Google is true, then Google will be in breach of a series of laws which require service provision to be clear and honest.

Oddly most people would understand that if a search engine deliberately hobbles a company, then this is not only unethical but illegal.

Strange that some people don't understand that acting in this fashion is a breach of fair trade laws (or whatever they are called in different countries).

Naturally, if Google made such a claim at the beginning of each search eg. We will deliberately or randomly remove information from your search, or block competitors names etc, then this would adversely affect the probability of someone using their search engine.

So, my advice to you my friend is:

Don't argue with idiots. They only bring you down to their level and beat you with experience.
Reply to this comment
by grimblegromble February 27, 2010 7:06 AM PST
I'm really not sure why so many people in these comments are defending Google. Everyone seems to think that just because Google offers free stuff and they seem really innovative and all that, that they're a great company. For a while, when they were just coming out with Gmail and then Google Docs and all that, they seemed to be fine, a cheap (free) alternative to the Microsoft sh*t we had been forced to use for years. But now, in the last few years, it's becoming more and more obvious that Google doesn't have our interests in mind. They take all of our information, we have no privacy, and why? So that they can make more money off specialized ads.

They're just like Microsoft! Microsoft had a monopoly and people finally decided that enough was enough and so now you see a large increase in Mac and Linux users. Google is creating a monopoly but not just in software, they're coming out with the netbook this year so that gets them into hardware, they're becoming an ISP, they now have legal rights to become energy suppliers... pay attention folks! Don't just blindly keep following this Pied Piper. I ditched Gmail and Google Docs, Chrome, and all that, a long time ago. Although the alternatives are not always better in terms of quality of service, at least I know that the company I'm supporting isn't trying to screw me over as much as Google.
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About Relevant Results

Relevant Results focuses on the big Internet companies of our time, tracking the evolution of search, communication, and business on the Web. Tom Krazit examines how a shift to mobile computing and the growing demand for online content affect our understanding of how to deliver information in the 21st century, in between bemoaning the state of the New York Mets and searching for the perfect IPA.

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