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[WebUser]

September 3, 2010 1:24 PM PDT
Texas opens antitrust investigation of Google
by Tom Krazit

Updated 1:55 p.m. PDT with additional information and background material.

Google will face an antitrust investigation in Texas over charges that it manipulated search results, in what appears to a similar case to one pending in Europe.

Google confirmed an earlier report by Search Engine Land Friday after the close of the stock market that Texas Attorney General Greg Abbott has contacted it in connection with an "antitrust review" of Google's business practices. Earlier this year, European regulators opened an investigation regarding claims by a Microsoft-friendly price-comparison site called Foundem that Google was downranking Foundem in hopes of putting the site out of business.

"We look forward to answering their questions because we're confident that Google operates in the best interests of our users," Google's Don Harrison said in a blog post. A representative for Abbott's office confirmed it has opened an antitrust investigation into Google's business practices but would not provide any further details on that investigation.

Google said that Texas had asked it specifically about Foundem's complaints as well as those of TradeComet and myTriggers, two U.S.-based companies who have filed their own antitrust suits against Google for allegedly manipulating search results to harm the two companies. TradeComet's case was dismissed on a technicality--incorrect venue--while a case involving myTriggers is pending in Ohio.

Google's rise to the top of the Internet has not gone unnoticed by regulators around the world. The company routinely faces scrutiny over its penchant for acquisitions, evidenced by Federal Trade Commission reviews of AdMob earlier this year and a currently underway review involving travel software company ITA Software.

Microsoft, itself a target of antitrust scrutiny a decade ago, has acknowledged that it has complained to federal regulators about Google's business practices, but denies it is orchestrating any legal campaign against the company. Google pointed out in its blog post Friday that Foundem is part of an organization with Microsoft called the Initiative for a Competitive Online Marketplace and that lawyers who have worked with Microsoft have represented TradeComet and myTriggers.




Read more: http://news.cnet.com...l#ixzz0yXorpt5Y

Texas opens inquiry into Google search rankings

By MICHAEL LIEDTKE (AP) – 4 hours ago

SAN FRANCISCO — Google Inc.'s methods for recommending websites are being reviewed by Texas' attorney general in an investigation spurred by complaints that the company has abused its power as the Internet's dominant search engine.

The antitrust inquiry disclosed by Google late Friday is just the latest sign of the intensifying scrutiny facing the company as it enters its adolescence. Since its inception in a Silicon Valley garage 12 years ago, Google has gone from a quirky startup to one of the world's most influential businesses with annual revenue approaching $30 billion.

A spokesman for Texas Attorney General Greg Abbott confirmed the investigation, but declined further comment.

The review appears to be focused on whether Google is manipulating its search results to stifle competition.

The pecking order of those results can make or break websites because Google's search engine processes about two-thirds of the search requests in the U.S. and handles even more volume in some parts of the world.

That dominance means a website ranking high on the first page of Google's results will likely attract more traffic and generate more revenue, either from ads or merchandise sales.

On the flip side, being buried in the back pages of the results, or even at the bottom of the first page, can be financially devastating and, in extreme cases, has been blamed for ruining some Internet companies.

European regulators already have been investigating complaints alleging that Google has been favoring its own services in its results instead of rival websites.

Several lawsuits filed in the U.S. also have alleged Google's search formula is biased. Google believes Abbott is the first state attorney general to open an antitrust review into the issue.

"We look forward to answering (Abbott's) questions because we're confident that Google operates in the best interests of our users," Don Harrison, Google's deputy general counsel, wrote in a Friday blog post.

Harrison said that Abbott has asked Google for information about several companies, including: Foundem, an online shopping comparison site in Britain; SourceTool, which runs an e-commerce site catering to businesses; and MyTriggers, another shopping comparison site.

All of those companies offer features that Google includes in its search engine or in other parts of its website. Foundem, SourceTool and MyTriggers have previously filed lawsuits or regulatory complaints against Google.

"Given that not every website can be at the top of the results, or even appear on the first page of our results, it's unsurprising that some less relevant, lower quality websites will be unhappy with their ranking," Harrison wrote.

Google says its closely guarded search formula strives to recommend websites that are most likely to satisfy the needs of each user's request. If it didn't keep its users happy, Google argues that people would become disgruntled and switch to other search engines offered by Yahoo Inc., Microsoft Corp. and IAC/InterActiveCorp's Ask.com.

Regulators and lawmakers in the U.S. and Europe also have been looking into Google's privacy practices and its acquisitions as the company tries to fortify its power.

Copyright © 2010 The Associated Press. All rights reserved.

[mudmanc4]

Good article.  Internet giants will always be attacked by someone for something , in this case i'm sure it's money.

Google can't and doesn't' guarantee any such indexing in any such order, it all depends on how many people want to know about a certain set of keywords, not what a site owner wants to see. You can get a contract with google to have your site placed on the sidebar, but even then , someone can pay a tiny bit more , and be on top.

Anti trust issues , ok , allow google to search your site index it and display it for everything searched relevant , and then attack them for anti trust. Nice hahaha

The "thing" here is , do your homework , set your site up and optimize your SEO in the many ways possible , and let it be. If you have a good product , ( content , what have you ) and people want it , and want to see it , then you'll do great. Simple.

why does it sound like I'm sticking up for google ? Because I am