The European Union is investigating Google on complaints that it demotes rivals in search results.

First Street View and now this. Europe does not want to leave Google alone. European Union antitrust regulators are investigating the search company on complaints that it has abused its dominant position by giving its own services preferential placement in search results, demoting competing websites and services, and stopping some websites from accepting rival ads. Microsoft’s Ciao service from Bing, French legal search engine Ejustice.fr, and U.K. price comparison site Foundem filed the antitrust complaint, reports Bloomberg.

The EU, which announced this investigation in February, said it does not yet have any prove of infringements, but is making the case a priority. It will investigate whether Google lowered the rankings of competing search engines and artificially raised the placement of its own services on search result pages. Regulators will also check whether Google manipulate its Quality Scores, which help determine how much advertisers pay Google to buy ads for any search keyword.

In an e- mailed statement, Foundem accused Google of “stifling innovation,” claiming that it “should not be allowed to discriminate in favor of its own services” and should be forced to blatantly label its own services in results.

Google, for its part, seems open to the investigation. “There’s always going to be room for improvement and so we’ll be working with the commission to address any concerns,” Google, based in Mountain View, California said.

The EU is not a laughing matter. Its antitrust regulators have the ability to fine companies for up to 10 percent of their revenue if found guilty of monopoly abuses. In the past, it has fined Intel and Microsoft for more than $1 billion each. Earlier this year, it launched an investigation into IBM’s server mainframe business.

Showing 2 comments

  1. StarThrower50 at 4:24pm 1st December 2010 As a private company, I'm not sure I see the wrong in how Google chooses to rank reviews. Let the consumer make the decision if they're finding what they want in Google searches, and if not, move to one of their competitors. Keep government out of this one.
  2. @NewDarren at 7:24am 30th November 2010 Google seems open to the investigation because they really don't have much choice in the matter. First Germany sued over Street View. The France over Adwords. Now this.
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