01 July 2010 | Author: J. Morton News Editor

French court rules against Google in AdWords case

Search giant and media conglomerate Google has suffered another blow in the continent, as a French court ruled against its moves to block Navx, a GPS-based travel service, in its AdWords service.

France's Competition Authority asserted that the Google AdWords policy lacked transparency, and that the suspension of Navx's account - which the company was only informed of four days after its effect - was unlawful.

"The content policy of Adwords was implemented by Google in conditions that lack objectivity and transparency and which lead to the discriminatory treatment of providers of databases on [roadside] speed cameras," the authority wrote in a statement.

The search seraph said it had banned the company from utilising AdWords, which allows companies to bid on advertisements returned alongside search results, due to its discontinuation of promoting radar detection devices, which are illegal in France.

Navx provides drivers with databases of information pertaining to road travel, including the locations of speed cameras, but also less controversial information such as petrol prices.

The Google AdWords policy dictates that "advertising is not permitted for the promotion of radar detectors in Germany, France, Belgium, Luxemburg, Poland, or Switzerland."

However, Navx officials maintain that - although they provide the locations of speed cameras - they have nothing to do with the sale of any illegal radar equipment. The company also said its online revenues dropped by 70 per cent after the account suspension.

As a result of the ruling by the Competition Authority, Navx's AdWords account is meant to be reinstated within the next five days.

Navx's chief executive, Jean Cherbonnier, lauded the ruling: "This is a major victory for all companies selling products and services on the internet, and, potentially, victims of such behaviour. From now on, all companies should be treated fairly by Google."

Google has faced previous investigation on antitrust grounds around the world, including in the US, Italy and Germany.

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