Foundem and Google Tussle
September 18, 2010
Google is the subject of anti-competition probes due to a number of complaints filed by competitor search engines. Officials are investigating accusations from various US and non US companies that Google is using unfair tactics to hurt smaller rivals. In the PC Pro article “Q&A: Why we’re taking on Google over competition” Shivaun Raff, the founder of the UK based company Foundem and one of the complainants answers a few questions about the case.
Foundem runs a vertical search and price comparison site and is one of the companies lashing out the allegations against Google. The company claims that for three years they were the victim of an automated search penalty issued by Google. Basically during the time the penalty was assessed they disappeared from Google’s search results even if they were actually relevant. In addition the company was also the victim of an AdWords penalty. The price of keyword bids increased substantially and Foundem was unable to compete with the market price. Each of the Google penalties were indirectly aimed at vertical search engine services.
Foundem’s complaint accuses Google of using penalties that were “increasingly aimed at the characteristics of vertical search services.” The second part of the complaint addresses Google’s ranking system and how its services are calculated by a different algorithm that always seems to rank them at the top. “By consistently placing its own services at or near the top, Google is leveraging its dominance in search to help its adjacent markets.”
Google’s explanation is that many of the companies that have filed complaints are supported by Microsoft. They then go a little further and state companies such as Foundem offer “less relevant, lower quality” sites and that’s why their results do not show up. Google defends its decision to include its own services in the search results and refers to it as “blending.” However Google offered no explanation of their ranking system and how they are always at the top. This is a big advantage because according to the article 50% of surfers generally click on the first search result given, therefore clearly giving an advantage.
Foundem is working towards building search engine results that are comprehensive, relevant and impartial. With the penalties and other tactics that Google is accused of the question to be determined is whether Google is really the best search engine or are they finding ways to get rid of the competition.
April Holmes, September 18, 2010
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