French Regulators: Google Abused Dominant Position in Online Ads

French antitrust regulator the Autorité de la concurrence has ruled search giant Google abused its dominant position of the online advertising market by terminating ads from GPS database provider Navx without warning.

Navx markets point of interest databases for GPS and smartphone devices, including those detailing the location of fixed and mobile speed cameras and speed traps. In 2008 Google modified its policy regarding ads for devices aimed at avoiding road traffic speed cameras, and subsequently terminated ads from Navx under a condition stating ads must not “promote illegal traffic devices that evade traffic laws.” Navx argued, however, that it does not sell such devices, but simply provides database information to be loaded onto GPS receivers such as those manufactured by brands such as Garmin and TomTom.

Following a complaint lodged by Navx therefore, the Autorité has ruled that Google’s policies regarding ads for such devices are unclear, and can only be enforced if they are implemented “in a transparent and objective fashion, that does not result in a discriminatory treatment of some market operators.” The regulator has ordered Google to reinstate Navx’s AdWords account, and to clarify its AdWords conditions applicable to devices aimed at evading traffic speed cameras within four months.

According to Navx, 85 percent of its advertising budget is assigned to AdWords, making Google’s product an essential part of its business. “Google’s practices have suddenly and significantly affected Navx’s income, but also and essentially its growth potential,” a statement from the Autorité read. “Pending a full investigation and a decision on the merits, the Autorité is of the view that Google has implemented the content policy of its AdWords service in a way which lacks objectivity and transparency, resulting in a discriminatory treatment of speed camera database suppliers,” it added.

In a blog post, Navx CEO Jean Cherbonnier said the decision was “a major victory for all companies selling products and services on the Internet.”