Feds Officially Hit Google with a Monopoly Investigation


The Federal Trade Commission slammed Google with subpoenas last week, officially launching a formal investigation as to whether the internet giant has abused its search monopoly.
The probe, which has the potential to reshape online advertising, is the most serious threat Google has faced in over 12 years. This probe is unique because it will examine fundamental issues relating to Google’s core search-advertising business — its biggest money maker and the one that most affects the PPC industry.

Let’s be clear about what the law states. It is NOT illegal to have a monopoly. It is illegal, however, to abuse it. One issue the FTC may raise in this case is: do Google searches UNFAIRLY steer users to the company’s own network of services and publishers at the expense of rival publishers? Many companies, including Expedia, Yelp, and CitySearch complain about the way Google ranks its own services in its "natural" search results, as well as the amount it charges them for placing ads — an example of its market power to determine which businesses
will either scale or fail.

1PlusV, a France-based vertical search company, sued Google yesterday in the Paris Commercial Court for $421 million, claiming its sites were "blacklisted" by Google, which led it to lose almost all its traffic. The company accused Google of manipulating “natural results” through (i) the artificial pushing up of Google’s own services to the first page of search results without giving internet users any chance to differentiate from real organic results and (ii) the discriminatory application of so-called “quality criteria” between competitors and its own services.

My take: Google cannot continue to use its dominance of the Search Results market to also dominate Search Syndication and Display.
Google will have to play fair or else pull out of one of these markets, and the most likely market will be search syndication.
In the long run, this is outstanding news, as Google’s control over your business and revenue will finally come to an end.

User Comment:
I love it!

User Comment:
If you don’t like, don’t use it.

If you had a company and you have competitors that were on your engine/ranking, wouldn’t you put yourself at the top.
Don’t rely on only google, because shit happens.

just my .02

User Comment:
Nice, just bought for a song

User Comment:
Oh fuck yeah… please let them get taken down… ow wait they have enogh spare cash to buy the government twice

The Article Published IN 06-30-2011 05:49 AM

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