EU to launch Google search investigation

Anti-trust inquiry follows allegations that tech giant abused its dominant position in the search and advertising marketThe European Commission today launched a formal investigation into Google following allegations that the internet giant has abused its dominant position in the search and advertising market.Google is facing an EU anti-trust investigation following complaints from rivals about "unfavourable treatment" of their search services within the search engine giant's "natural" unpaid as well as sponsored listings.Complainants, including Microsoft and UK firm Foundem, which is also involved in a US inquiry into Google, allege the company gives "preferential placement" to its own services. The complainants allege that Google unfairly "lowers the ranking" of unpaid search results of some services, such as price comparison websites, in a bid to "shut out competing services".In addition the probe will look at allegations that Google imposes "exclusivity obligations" on advertising partners preventing them from placing "certain types of competing ads on their web sites"."This initiation of proceedings does not imply that the Commission has proof of any infringements," said the Commission. "It only signifies that the Commission will conduct an in-depth investigation of the case as a matter of priority."Google refuted the accusations but admitted that there is "always going to be room for improvement" and pledged to work with the Commission."Since we started Google we have worked hard to do the right thing by our users and our industry, ensuring that ads are always clearly marked, making it easy for users to take their data with them when they switch services and investing heavily in open source projects," said a Google spokesman."But there's always going to be room for improvement, and so we'll be working with the Commission to address any concerns."In September regulators in Texas launched the first broad anti-trust review of Google's search and advertising practices in the US. While federal regulators in Washington have investigated the impact on competition of Google's business deals in the past, Greg Abbott, Texas attorney general, is the first regulator to look more broadly at its core search business, amid growing concerns about the power the online business wields.Getting the Commission to quiz Google is a victory for firms such as Foundem, which has complained for years that the vagaries of its search algorithm have huge consequences for the number of visitors to its website, which compares the prices of anything from flights to microwave ovens.GoogleInternetSearch enginesAdvertisingDigital mediaMedia businessMicrosoftComputingMark Sweneyguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

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