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EU Asks Google About Anti-competitve Allegations

by - source: Tom's Hardware US

The EU has received complaints from U.S. search giant, Google, and could launch an anti-trust investigation into the company.

Google today revealed that it has been contacted by the European Commission which says it has received three complaints about Google, one each from Foundem, a UK price comparison site, ejustice.fr, a French legal search engine, and Microsoft's Ciao! from Bing.

Google's Senior Competition Counsel, Julia Holtz today blogged about the complaints and pointing out that that Foundem is a member of an organisation called ICOMP which is funded partly by Microsoft. Foundem claims argues that Google's algorithms demote their site in our results because they are a vertical search engine and so a direct competitor to Google. Holtz says ejustice.fr's complaint "seems to echo these concerns."

Regarding Ciao!, Google says they were a long-time AdSense partner. In fact, according to Holtz, Google and Ciao! enjoyed a good relationship until the company was acquired by Microsoft in 2008.  "We started receiving complaints about our standard terms and conditions. They initially took their case to the German competition authority, but it now has been transferred to Brussels," said Holtz.

Holtz maintains that Google has done nothing wrong and says, "Our search is not perfect, but it's a very hard computer science problem to crack."

At the time of writing, the EU had yet to announce any formal investigation.

"The commission has not opened a formal investigation for the time being," the EU said in an e-mailed statement to Bloomberg. "As is usual when the commission receives complaints, it informed Google earlier this month and asked the company to comment on the allegations."

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maigo 02/24/2010 10:47 PM
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JasonAkkerman 02/24/2010 10:56 PM
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outlw6669 02/24/2010 10:58 PM
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-5+

Damn it EU :pfff:

the_krasno 02/24/2010 11:05 PM
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-12+

This smells like bullshit. The EU loves making money on fines on big companies while selectively ignoring others (for example, Apple wasn't asked to change it's default web browser but Microsoft was. I'm not defending this companies, I'm attacking EU's evident lack of shame)

back_by_demand 02/24/2010 11:11 PM
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-14+

Here we go again with this EU bullshit.

I give it 12 months and the Google homepage will have options for 5 other search engines asking if you want to use them instead. Well, the answer is no if I wanted to use Bing or Alta Vista I would have gone to their homepage instead.

Anonymous 02/24/2010 11:26 PM
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-8+

"Apple wasn't asked to change it's default web browser but Microsoft was."

It's a good point, though while I agree that the enforced browser ballot screen is ridiculous it's worth mentioning that Apple is a far less significant player (and thus, issue) outside of the US.

As far at this news piece goes I'm willing to believe it's a Microsoft-staged coup until the opposite has been proven. They have after all been turning up the heat with Bing and seems to have realized that Google is a main competitor in many every aspects of their business.

Yuka 02/24/2010 11:38 PM
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-6+

The more news like that come out, the more I think companies these days use this business model:

Profit = 10% R&D work + 40% Marketing work + 50% Lawyers work.

Give us a break!

Cheers! xD!

schmich 02/24/2010 11:42 PM
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jdubsbooth 02/24/2010 11:48 PM
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-6+

schmich :
Yes I'm sorry the EU is more pro-consumer than the US.


If the EU is truly pro-consumer then why are they so inconsistent in their attacks? Why are only Microsoft's customers given a browser ballot, for example?

Anonymous 02/25/2010 12:15 PM
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-9+

Because Apple is a minor player in the EU (far less than the 10% it supposedly has in the US). When their market share rises they might come under scrutiny.

I'm more interested about the EU looking into iTunes. The shop, the forced bundling with other software, the locking out of other players, etc. There are a bunch of issues right there that consumers would like to be investigated IMHO. Much more than a browser ballot in an OS that nobody uses.

babybeluga 02/25/2010 12:25 PM
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-0+

EU = European Usurpers?

JohnnyLucky 02/25/2010 12:33 PM
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-0+

You know, there is such a thing a freedom of choice. I don't see what all the fuss is about.

Regulas 02/25/2010 12:43 PM
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-0+

More EU crap with Microbloat edging them on, imagine that.

bydesign 02/25/2010 12:59 PM
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--3+

About damn time. Google's business model is shady at best. They always settle because the day they go to trial, they no know if they loose it will be game over. Is this case BS, I don't know, but Google deserve whatever happens 1000 fold.

_Cubase_ 02/25/2010 3:03 AM
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-6+

In other news: the EU is suing the pants off more companies, and then suing their employees for indecent exposure, and then suing said employees for wanting to put their own pants back on instead of choosing someone elses.

False_Dmitry_II 02/25/2010 3:54 AM
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-6+

Apple being minor is an irrelevant point. That just means that they are given free license to shove whatever down its users throats until it makes the bigtime? That's stupid.

jsc 02/25/2010 6:41 AM
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-0+

First Intel. Then Microsoft. Now Google.

Anyone else see a pattern here?

anamaniac 02/25/2010 7:25 AM
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-2+

I've already lost respect for the EU a while ago.

While Google, Intel, Microsoft etc. are shady, they do properly invest in R&D and it does benefit the customer.

Screw you EU, I like my Win7, i7 and Google.com

jenesuispasbavard 02/25/2010 4:31 PM
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-1+

"The EU has received complaints from U.S. search giant, Google, and could launch an anti-trust investigation into the company."

So, Google filed a complaint against itself? That's a new one, Tom's.

Anonymous 02/25/2010 4:44 PM
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I am sorry, I fail to see where the EU is sueing Google at this point.
They received complaints from 3 sides, all of 3 linked with Microsoft ?
All the EU did was take note of those complaints, inform Google and asked if they could comment on it.

Silmarunya 02/25/2010 5:05 PM
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The EU is launching an INVESTIGATION. If they are innocent, like so many here believe, nothing happens except some EU burocrats wasted time.

And the case against both Intel and Microsoft was legitimate (btw, Intel was close to a similar fine for the same offence in the US before it settled with AMD).

Microsoft sells an OS but bundles it with other software. Consumers without any computing knowledge automatically buy Windows and thus use Microsoft software. They used their quasi-monopoly in the OS market to force other stuff upon consumers that didn't know better. The EU's case was legitimate. If Apple would ever acquire a similar degree of market dominance with OS X and only offered Safari the same would happen.

Intel used practices against AMD that were more than shady, they were pitch dark. Even the US was on its tail...

kingnoobe 02/25/2010 6:40 PM
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-0+

I disagree with you sil. It shouldn't matter how much market share you have. What is good for the goose is also good for the gander. Give me a break. It's the same shit thus apple show have to follow it to.

Now with google. Really wtf? I don't get how their being anti-competitive. I'm not forced in any way to use google. I can type bing in just as easy and use it.

back_by_demand 02/25/2010 7:21 PM
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Silmarunya :
The EU is launching an INVESTIGATION. If they are innocent, like so many here believe, nothing happens except some EU burocrats wasted time.


The EU dont do investigation, they unilaterally act as judge, jury and executioner with outlandish decisions based on the way the wind is blowing rather than common sense, and before you say those are the laws, the laws for theEU didn't exist until they made them up on the spot to satisfy a verdict they already came to.
But yes, they do waste a lot of time, ours mainly.

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