Paris — France’s antitrust watchdog on Wednesday accused Google Inc.’s online ad service of unfair practice by blocking a company from advertising on its online search services without warning and ordered it to clarify conditions for the product within four months, a decision that comes amid the country’s growing concern over search engine giant’s dominance of the lucrative French search market.
In a preparatory ruling, the antitrust authority said that Google’s AdWords system, which prompts ads to appear alongside search results, lacked transparency and “resulted in discriminatory treatment.”
French database firm Navx suddenly discovered its AdWords account had been blocked in mid-November 2009 and had to hold back four days for a written explanation from Google, the authority said in its judgment.
Google must reinstate the AdWords account of Navx within five days and permit the company to place ads again, the French competition authority said in its ruling Wednesday, finding that Google had discriminated against Navx.
Google said it had frozen the account on the grounds that its code of practice for advertisers tells them: “Don’t promote illegal traffic devices that evade traffic laws,” according to documents reviewed by the competition authority. In many European countries, radar detectors that warn drivers as they approach a speed trap are illegal.
“Moreover, advertising is not permitted for the promotion of radar detectors in Germany, France, Belgium, Luxemburg, Poland, or Switzerland,” the rules state.
“The content procedures of AdWords was implemented by Google in conditions that lack objectivity and transparency and which lead to the discriminatory treatment of providers of databases on (roadside) speed cameras,” it said in a statement.
“The competition authority is stating that Google has a dominant position,” said Ron Soffer, Navx’s lawyer. “When you have that position you can not just do what you want.”
“Google’s procedures have suddenly and significantly affected Navx’s income, but also and essentially its growth potential,” it said as it granted Navx’s request for interim measures.
A final ruling in the French case is expected in September, and a Google spokesman said the company remained “confident of a positive outcome.”
Furthermore, Google is confronted with several other investigations into alleged anti-competitive practices in Europe.