Google rubbishes competition claims

The charges filed against it with the Competition Commission are without merit, says the search giant.

Google SA this morning dismissed a complaint, filed against it by Entelligence with the Competition Commission, as being "without merit".

The local online search engine marketing company filed the complaint with the competition authority last Friday, accusing the global search giant of abusing its dominance in the local market.

The local arm of the California-based behemoth responded with a brief statement: "Google has strict professional protocols for working with agencies and clients in SA and around the world; these were developed specifically to ensure that a fair and open business model continues to be in operation. The claims put forward are without merit."

Entelligence's complaint stems from allegations that Google SA manipulated AdWords costs on the Yellow Pages, which Entelligence currently manages. Yellow Pages Online is owned by TDS Directory operations.

The South African company, established in 1999, charges that it met with Google SA in June to discuss how traffic to the Yellow Pages Web site could be maximised.

"Clear actions were agreed upon to jointly cooperate to increase advertising performance. However, that evening Google SA edited the cost-per-click for every Yellow Pages advertisement from 60c to R2, without notifying Entelligence in advance," explains the statement.

It further alleges that Google SA aimed to pitch directly for the account with the Yellow Pages, which it intended servicing directly as part of its greater strategy within SA.

The company also claims Google is employing a strong-arm tactic against it. "Google SA has now informed Entelligence that they will inhibit our ability to continue servicing Yellow Pages by refusing to renew our accounts held with Google and that they will prevent us from creating any new accounts in an attempt to service Yellow Pages," Entelligence said in a previous statement.

Entelligence MD Sean Riley was not available for comment this morning.

This story was first published on ITWeb at http://www.itweb.co.za/sections/internet/2008/0809041032.asp

Services Subscribe to newsletters News feeds Participate in our online survey

Print story    Email story

COMMENTS