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
RE: I like it when..
9/23/2011 4:01:49 PM
Case in point, up until Google came along, Yahoo was the largest search engine around. What happened when a better service showed up? Yahoo all but died, and are still losing the last vestiges of life that they've somehow managed to hold onto for these years.
If a better service than Google wants to come to the playing field, more power to them. Until then, claiming that because they're more popular because they're cheating is a baby talking. They're more popular because they're better at giving me what I look for when I look for something. Bing is number two, but it is that... number two.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
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
Target Data Breach Compromises 40 Million Customer Credit/Debit Cards
December 19, 2013, 12:06 PM
Netflix to Stream House of Cards in 4K via HEVC H.265 Compression
December 19, 2013, 11:38 AM
Overzealous Porn Filters in the UK Block Educational Sites
December 19, 2013, 10:30 AM
Hulu to Hit $1 Billion in Revenue by End of Year
December 18, 2013, 1:35 PM
Harvard Undergrad Busted by Wi-Fi after Making Bomb Threat to Avoid Finals
December 18, 2013, 10:37 AM
San Francisco's Market Street Receives Free Outdoor Wi-Fi
December 17, 2013, 11:14 AM
Most Popular Articles
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
Ten Senators Sponsor Bill to Scrap Corn Ethanol Market Manipulation
December 13, 2013, 1:52 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Metro-Enabled Firefox Browser Expected to Land After Two Years of Work
December 12, 2013, 5:21 PM
Top Microsoft Graphics Genius Defects to Google
December 17, 2013, 4:27 PM
Latest Blog Posts
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
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information