U.S. Senators, Microsoft Accuse Google of Anticompetitive Tactics
September 23, 2011 12:06 AM
comment(s) - last by
Microsoft says Google unlawfully overcharged it for advertisements
U.S. antitrust regulators are looking into whether Google unlawfully increased advertising rates 50-fold for Microsoft Corp., according to
Earlier this year, Microsoft
filed an antitrust complaint against Google
in Europe saying that the Internet giant was dominating the search market as well as other areas such as the mobile-related realm. Around that same time, the U.S. jumped in on the Google antitrust bandwagon when Senator Mike Lee (R-Utah) called for a hearing on Google's possible anti-competitive practices.
The Federal Trade Commission (FTC) began investigating the accusations against Google's behavior on June 24, 2011, sending subpoenas to several companies including Microsoft. The FTC is looking to figure out whether or not Google ranks its own search results above rivals' results, and whether or not Google uses its control of the Android mobile OS to discourage smartphone makers from using other applications. Overall, the FTC hopes to reveal (with the help of companies like Microsoft) whether Google has been abusing its dominant position in many different areas.
The U.S. Senate
prepared to question Google
and Executive Chairman Eric Schmidt earlier this week regarding these antitrust issues. In a U.S. Senate Judiciary antitrust committee hearing this week, U.S. lawmakers further criticized Google claiming that Google favors its own services over rivals when it comes to search.
Now, the FTC is investigating a few specific complaints from Microsoft, one of which claims that Google unlawfully increased advertising rates 50-fold for Microsoft. This complaint is part of the larger ongoing investigation of Google's possible anti-competitive practices.
Microsoft initially complained about the increased ad rate back in 2007. According to Microsoft, the cost for placing a Windows Live ad next to search results for the word "Hotmail" went from 10 cents per mouse click to $5 per mouse click.
anonymous source said during that time, Google told Microsoft that the price increase was due to users being directed to a low-quality website when clicking on the ad -- but the website was the homepage for Windows Live, which includes Hotmail.
Adam Kovacevich, a Google spokesman, said that he was unaware of the details of Microsoft's allegations concerning the ads, but noted that rates are usually partially determined by how closely an ad is related to a user's search.
Microsoft Spokesman Jack Evans said that Google shouldn't be allowed to continue
from "innovating and offering competitive alternatives."
The FTC is also investigating Microsoft's complaint that Google pressured advertisers to partake in contracts that make it challenging to advertise with rivals like Yahoo and Bing. In addition, Microsoft accused Google of producing hurdles that
from comparing the number of times users click on their ads they run on Google as opposed to other rival sites.
Google claimed 59 percent of the U.S. online search advertising revenue in the second quarter of this year while Microsoft claimed 9 percent and Yahoo claimed 7 percent.
This article is over a month old, voting and posting comments is disabled
Well M$ Hit a new low....
9/23/2011 2:55:25 PM
The senator is pissed he didnt get a butt load of money from google. So Microsoft happily gave him the money he was wanting. It boosts Microsofts bottom line, they are no longer the "ruler of the software world". They cant make a great phone, os, or a search engine. Microsoft may as well jump in bed with AT&T.
RE: Well M$ Hit a new low....
9/25/2011 10:47:37 AM
Except that MS make what is generally regarded as the best Phone OS, the best Desktop OS and quite a lot of people also hand them the "best search engine" tag (to be clear, I do not, google ftw!).
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
U.S. Senate Prepares to Grill Google, Eric Schmidt on Antitrust Issues
September 19, 2011, 2:34 PM
South Korea's Antitrust Investigation Into Google Heats Up With Raid
September 7, 2011, 12:51 PM
Google Expects to Pay at Least a $500M USD Fine for Antitrust Offenses
May 11, 2011, 1:51 PM
Microsoft Files Antitrust Complaint Against Google in Europe
March 31, 2011, 3:35 AM
U.S. Wants to Reduce Tension Over Internet Net Neutrality
April 22, 2014, 2:07 PM
AT&T Announces Plans to Expand Ultra-Fast Fiber Internet Network to 100 Cities
April 22, 2014, 9:36 AM
AT&T Takes First Steps in Launching Its Own Online Video Service
April 22, 2014, 9:25 AM
Netflix Opposes Comcast/Time Warner Deal, Says It's Anti-Competitive
April 22, 2014, 8:52 AM
Quick Note: Netflix to Raise Streaming Prices Later This Year for New Customers
April 21, 2014, 11:09 PM
Facebook Set to Launch its Own Ad Network with Heavy Focus on Mobile
April 21, 2014, 2:07 PM
Most Popular Articles
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
HTC Hires Former Samsung Marketing Chief Who Developed "Galaxy" Brand
April 18, 2014, 6:00 PM
NASA Finds "Habitable Zone" Planet Sized Similar to Earth
April 18, 2014, 3:13 PM
Mounties Arrest 19-Year-Old Who Delayed Canada's Tax Filing w/ Heartbleed
April 17, 2014, 3:24 PM
Thanks to Government Crackdown, Chinese "Porn Cop" Has Watched 600K Adult Videos
April 21, 2014, 12:00 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information