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Wednesday, December 14, 2011

Google Facing $30 Million Lawsuit

Google has just opened its new French headquarters, but it seems that they won't be receiving a warm welcome in the nearest future. The reason is that the company has recently landed itself in hot water over the abuse of its dominant position one more time, facing a lawsuit that demands over $30 million for damages to some navigation software firm.

French company named NAVX is currently suing Google in the Paris Commercial Court over what it believes to be wrongdoing about blocking advertisements from the company. NAVX has appealed to the local antitrust authorities over its treatment by the search giant where it was discovered that competition legislation has been violated. The search giant was ordered to reinstate the NAVX’s advertising, as well as clarify the conditions of its Adwords service for further use. NAVX, which offers content for GPS and smartphones, confirmed that Google did agree to do so.

Nevertheless, the French firm acknowledged that it has lost out on a load of money because of Google’s meddling, so it has demanded damages of around $31 million. NAVX Chief Executive Officer Jean Cherbonnier has announced that the dominant position of Google on the advertising market connected with search engines can’t be disputed, particularly after the investigation carried out by the French Antitrust Authority that concluded a year ago that the search giant undoubtedly holds a dominant position.

NAVX is currently asking the Paris Commercial Court to hand down ruling saying that Google abused its dominant position. The company also hopes the court will order Google to pay damages. Meanwhile, such court case couldn’t come at a worse time for the international corporation. Its CEO has just met with European Commission antitrust boss in a kind of last ditch attempt to stop a formal investigation into the company landing the search giant with a statement of objection over its practices.

Truly, it looks like NAVX isn’t the only company out for Google’s blood after the latter allegedly mistreated them. Such firms as Ciao and Foundem are also enraged at Google’s activities and are currently pushing for intervention of European Commission into what they see as bullying and bullish behavior. In other words, it is very unlikely that some other companies making detrimental claims against the search giant while talks are ongoing do Google any favors.

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