Small Search Engine Files Antitrust Lawsuit Against Google
Posted on: Thursday, 19 February 2009, 16:05 CST
A small Internet search engine has filed a lawsuit against Google over violating Internet antitrust laws, the Associated Press reported on Thursday.
TradeComet.com claims Google manipulated its system for setting ad rates to make it too expensive for a specialty search engine called SourceTool to promote itself within Google's vast online marketing network.
TradeComet, which started up in 2005, said Google's anticompetitive conduct eliminated it as a competitor.
Google stated that it had not yet reviewed the allegations, but released a statement reminding would-be competitors of the many other online advertising options, including networks run by rivals Yahoo Inc. and Microsoft Corp.
"As we have consistently made clear, the advertising market in which Google operates is highly competitive, and advertisers have a huge range of choices," it said.
The New York-based TradeComet claims Google stifled the growth of its subsidiary, SourceTool.com, when it raised the minimum bids on SourceTool ads that were triggered by specific search requests.
The suit alleges that words that resulted in advertising costs of 5 cents and 10 cents per click soared to $5 and $10 per click.
Dan Savage, the founder and chief executive of TradeComet, told the AFP that Google changed from cheerleader to tyrant when it realized his company was a competitive threat.
TradeComet said the higher rates prevented SourceTool from promoting its search engine, which helps connect businesses looking to buy and sell products and services among themselves.
The site claims its traffic plunged by 90 percent after Google imposed its new pricing terms.
TradeComet’s representing attorney Rick Rule said SourceTool.com offered a valuable service and TradeComet.com had a thriving business before Google decided to eliminate them as a competitor.
"We believe this complaint has strong merit and represents a serious antitrust violation," he added.
Google controls nearly two-thirds of the Internet search requests in the United States and sells an even larger chunk of the text-based ad links that appear alongside search results and other content on millions of Web pages a day.
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Source: redOrbit Staff & Wire Reports
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