Media News - Wednesday, December 15, 2010

French watchdog says Google dominant in local Internet ads

France's antitrust watchdog said it found that Google Inc. has a dominant position in the local Internet search advertising market, a result that could make Google vulnerable to lawsuits in France and adds to the Silicon Valley company's mounting problems in Europe. The decision by Autorite de la Concurrence, which follows a request by the French government to investigate Google's position in the country's online ad market, comes two weeks after the European Commission launched a separate antitrust inquiry into Google's ad and search business. Google disagreed with the watchdog's decision, saying that advertisers have various ways - not only online, but also in traditional spaces such as magazines or billboards - to make their products visible to consumers. In its decision, the French antitrust watchdog said that Internet search ads target consumers in a way that no other advertising can and, therefore, should be considered a market in itself. It said Google dominates this market in France, with 90 percent of Internet searches in the country made using its search engine. The watchdog made clear that Google hadn't abused its dominant position. However, it listed a number of potential problems stemming from Google's leading position. (Wall Street Journal)

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