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Google to be sued by French rival

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Published 28 June 2011, updated 01 July 2011
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Google this morning (28 June) learned it will be sued by a French company for  €295 million, in yet another clash between the company's search and advertising business and rival websites. 

French search engine 1PlusV said it was suing Google before the Paris Commercial Court, claiming that the search provider was abusing its dominant market position by demoting or blocking rival services.

"We have only just received the complaint so we can't comment in detail yet. We always try to do what's best for our users. It's the key principle that drives our company and we look forward to explaining this," Google said in a statement released today. 

The French company's decision is not out of the blue as it owns eJustice.fr, a company which filed a similar complaint againt Google at the European Commission last year alongside two other websites Foundem.com and Microsoft's Ciao.

On the back of these complaints, the European Commission began a formal investigation into Google's search function in November last year.

Last week, the US Federal Trade Commission announced it was investigating the company's search-advertising business after similar complaints to the American antitrust authority.

1plusV has filed a separate complaint in Paris as it cannot seek damages before the European Commission. The French company has accused Google of stifling rivals by tying Adsense, its advertising service, to the Google search engine.

According to a statement released by the company, Google has been "pursuing a strategy of foreclosure against vertical search engines on the market for natural reference listing, online advertising linked to searches and in the sector for production and commercialisation of search technologies".

"Between 2007 and 2010, no less than 30 vertical search engines created by 1plusV were black-listed, some of which showed significant business potential," the statement continued.

Adsense allows customer websites to display ads which relate to either their content or searches made by users.

Background: 

Google said in February 2010 that British price comparison site Foundem and French legal search engine ejustice.fr had alleged that its search algorithm demoted their sites in Web search results because they were rivals of Google.

EU regulators began scrutinising allegations of anti-competitive behaviour in Google's Internet search services amid concerns that they were abusing a dominant market position, Europe's antitrust chief announced in July.

The Commission can fine companies up to 10% of global turnover for breaching EU competition rules.

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