The Texas attorney general’s office has launched a probe into Google’s methods of ranking websites, citing complaints that the company manipulated search results to stifle competition, according to reports on Reuters and the AP.
Google disclosed the antitrust inquiry on September 3, 2010. The search engine powerhouse faces a similar probe by the European Commission, but says that this is the first such probe by a U.S. legal authority into the fairness of its rankings, which can make or break commercial websites. Google’s search engine processes about two-thirds of U.S. search requests and even more in other parts of the world.
Texas Attorney General Greg Abbott asked a number of companies to provide information related to the complaints, according to Google. Google specifically mentioned websites operated by Foundem, TradeComet and myTriggers, businesses the search engine considers its competitors, as challenging its results.
Website Ranking Means More Traffic, More Money
The order that websites are ranked on the world’s number one search engine determines the amount of traffic steered toward sites and subsequently revenue generated from ads and merchandise sales. A high ranking means greater success, while sites buried in back pages and even the bottom of the first page struggle to stay afloat. Google's ranking formula remains a closely guarded secret.
"We recognize that as Google grows, we're going to face more questions about how our business works," says Don Harrison, Google's deputy general counsel, in a blog post.
"We look forward to answering (Abbott's) questions because we're confident that Google operates in the best interests of our users. 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.”
Google says its goal is to provide its user with the most relevant information that will most likely satisfy each user's needs, arguing that if it didn't keep its users happy, they would become disgruntled and switch to other search engines offered by Yahoo Inc., Microsoft Corp. and IAC/InterActiveCorp's Ask.com.
Google pointed out that attorneys who also work for Microsoft Corp represent two of the companies listed in the complaint. Google says that MicroSoft has publicly encouraged companies to challenge Google's business practices.
This antitrust inquiry is just latest in Google’s troubles. U.S. and European regulators continue to investigate complaints brought about previously, which allege that Google's search formula is biased and favors its own services in its results instead of rival websites.
Google Settles Privacy Lawsuit
Regulators and lawmakers in the U.S. and Europe also are looking into Google's privacy practices and its acquisitions as the company tries to bolster its control over the industry. The search engine giant recently settled a federal lawsuit accusing it of privacy violations in connection with its Buzz social networking service.
Google settled the lawsuit brought by a Gmail user and will set aside $8.5 million for attorneys’ fees and donations to organizations focused on Internet privacy.
More information is available from Google’s website.
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