GOOGLE has promised to overhaul its rules and procedures for blocking certain advertisers from buying “sponsored links” on its search engine, as part of a settlement announced Thursday.
Under the deal with the French Competition Authority, Google agreed to adopt conditions, including a three-month notification period, when it rejected some ads from appearing next to its search results in France.
The specific conditions apply only in France, and concern only ads for tools aimed at helping drivers avoid speeding tickets. The settlement stems from a complaint by a company called Navx, which provides online maps pinpointing the location of radar and camera systems the authorities use to crack down on speeding on French roads.
The complaint by Navx stems from a decision by Google last November, when it blocked the company from buying search ads, arguing that radar detectors were illegal in France. In June, the French Competition Authority ordered Google to restore Navx as a customer on an interim basis as it investigated.
Under the settlement, Google also agreed to apply “the principle of improvements and clarifications made in implementing these commitments” in every country in which it operates AdWords, its keyword advertising system.
“This is a monumental event, because the French Competition Authority got Google to modify its contractual rules on a worldwide basis,” said Ron Soffer, a lawyer for Navx. “So if you are in the shoe business in California and Google suddenly decides it doesn’t like shoes, this settlement will affect you.”
The settlement upholds Navx’s right to buy search ads, saying the company operates within the law, even though radar detectors remain outlawed.
Google, meanwhile, expressed relief that the French Competition Authority had made “no finding of dominance or monopoly abuse” in its investigation. In June, the authority had declared that Google had a “dominant position,” with about 90 percent of the online search business in France.
The authority “has recognized Google’s right to set clear content policies that guarantee ads are appropriate,” Google said in a statement.
Google’s search engine, and AdWords, the company’s biggest revenue generator, have come under increased scrutiny from competition authorities across Europe in recent months. Investigations are under way in Germany, Italy and other countries, and at the European Commission in Brussels.
The French Competition Authority is continuing a separate, broader investigation of the online advertising market in France, with conclusions expected by the end of the year.
Meanwhile, Navx has sued Google in a commercial court, seeking 7 million euros ($9.7 million) for damages to its business that it contends it suffered while it was blocked from advertising on Google.