Microsoft Files Complaint With EU Against Google on Search

By Dina Bass - Mar 31, 2011

http://www.bloomberg.com/news/print/2011-03-31/microsoft-says-it-s-filing-complaint-against-google-s-market-share-with-eu.html

Microsoft Corp. (MSFT) filed a formal complaint with European antitrust 
regulators about Google Inc. (GOOG)’s dominance of the Internet search market 
in the region.

Google bars competitors from accessing its YouTube video site for search 
results and has kept phones running Microsoft’s operating system from working 
properly with YouTube, Redmond, Washington-based Microsoft said in a blog 
posting by General Counsel Brad Smith.

A Microsoft unit and two other rivals last year lodged a complaint with the 
European Union, which is investigating whether Google has violated the region’s 
antitrust laws. Google is under growing pressure from global regulators that 
are probing whether the company uses its dominance of Web search to thwart 
competition.

“Our filing today focuses on a pattern of actions that Google has taken to 
entrench its dominance in the markets for online search and search advertising 
to the detriment of European consumers,” Smith wrote in the blog posting.

While Microsoft and partner Yahoo! Inc. have about a quarter of the U.S. search 
market and Google the rest, Google has almost 95 percent of the market in 
Europe, Smith said, citing data from regulators.

Google “is not surprised” that Microsoft has complained because its advertising 
unit, Ciao from Bing, filed a complaint last year, said Al Verney, a spokesman 
for Google in Brussels.

‘Happy to Explain’

“We continue to discuss the case with the European Commission and we’re happy 
to explain to anyone how our business works,” he said in an e-mailed statement 
today.

Amelia Torres, a spokeswoman for the European Commission in Brussels, declined 
to comment.

Google shares fell 0.7 percent to 411 euros and Microsoft fell 0.03 percent to 
18.15 euros at 9:18 a.m. in Frankfurt trading.

Besides cordoning off YouTube, Google is also seeking to block access to 
content owned by book publishers and restricting its own advertisers from 
accessing the data they put in Google servers as part of ad campaigns, 
Microsoft said.

“Unfortunately, Google has engaged in a broadening pattern of walling off 
access to content and data that competitors need to provide search results to 
consumers and to attract advertisers,” Smith said in the blog. Microsoft is the 
world’s largest software maker.

Search Boxes

Google also has signed contracts that block top European websites from 
distributing rival search boxes, Microsoft said. For example, Microsoft can’t 
distribute some e-mail and document services through certain European 
telecommunications companies that have contracts with Google because these 
services make use of Bing search boxes, Smith said.

The EU said in November that it’s investigating whether Google’s AdSense 
contracts prevent publishers from striking deals to place ads from other 
services on their sites. It’s also looking at claims Google limits advertisers’ 
ability to move data such as key search terms from AdWords to another service.

Google said in a statement in November that it “worked hard to do the right 
thing by our users and our industry” by marking ads clearly and enabling users 
and advertisers to move data to other services.

“There’s always going to be room for improvement and so we’ll be working with 
the commission to address any concerns,” Mountain View, California-based Google 
said in the November statement.

To contact the reporter on this story: Dina Bass in Seattle at 
[email protected]

To contact the editor responsible for this story: Tom Giles at 
[email protected]

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