Welcome | View My Profile | Sign Out
MediaPost Home About MediaPost Privacy/Terms Media Kit Sitemap
Publications Home News
Online Media Daily Media Daily News Marketing Daily Mobile Marketing Daily Search Marketing Daily Social Media & Marketing Daily Video Daily Raw Blog
Daily Feed> Email
Online Blogs
Online Spin Email Insider Search Insider Behavioral Insider Online Publishing Insider Mobile Insider Video Insider Gaming Insider Performance Insider Metrics Insider Social Media Insider Just An Online Minute Daily Online Examiner Raw Blog
Media Blogs
Research Brief Diane Mermigas:On Media TV Watch TV Board Magazine Rack Media Creativity Notes From the Digital Frontier Digital Outsider Mad Blog Red White and Blog
Marketing Blogs
Engage:Hispanics Engage:Kids 6-11 Engage:Moms Engage:Boomers Engage:Gen Y Engage:Teens Marketing:Green Marketing:Health Marketing:Sports MarketingTools: CRM Marketing:Travel
Magazines
OMMA Magazine Media Magazine
Subscribe
Feedback Loop RSS Feeds Archives Subscribe
Sep 27 OMMA Awards (NYC) Sep 27-28 OMMA Global (NYC) Sep 28 Online All Stars (NYC) Sep 29 Future of Media (NYC) Oct 5-6 CHANGE Digital Transformation Summit (Boston) Oct 27 OMMA Mobile (LA) Nov 1 OMMA Performance (NYC) Nov 2 OMMA AdNets (NYC) Dec 5-8 Email Insider Summit (Utah) Dec 8-11 Search Insider Summit (Utah) Dec 14 Creative Media Awards (NYC) Mar 17 Appy Awards (SF)
Recently Concluded Events
Aug 29 Social Media Insider Summit (Tahoe) Aug 25 Mobile Insider Summit (Tahoe) Jul 22 OMMA Metrics (SF) Jul 21 OMMA Behavioral (SF) Jul 19 OMMA AdNets (LA) Jun 17 OMMA Social (NYC) Jun 16 OMMA Publish (NYC) Jun 15 OMMA JUNE (NYC) Jun 15 OMMA Video May 13 Digital Out-of-Home Forum (NYC)
All MediaPost/OMMA Events Event Blogging Past Event Videos
Industry Events Calendar
2010 OMMA Awards 2010 Creative Media Awards 2011 Appy Awards
2010 Digital Out-of-Home Awards 2010 MEDIA Agency of the Year 2009 2010 OMMA Agency of the Year 2009 2009 Creative Media Awards 2009 OMMA Awards 2009 Digital Out-of-Home Awards
All Awards
Employment Situations Wanted Services Offered Post a Job
Briefs Reports Online
MediaPost Directories
Mobile Insiders Group
People Finder Edit My Profile View My Profile My Contacts My Calendar
HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Search Marketer Files Antitrust Lawsuit Against Google
by Wendy Davis, Monday, February 22, 2010, 8:27 PM

SHARE

TOOLS

RELATED ARTICLES
TAGS:  keywords, Legal, Google

MOST READ

google/gavel

Google has been sued by a second search marketer who alleges that Google broke antitrust laws by increasing the cost of the marketer's pay-per-click ads.

The new case, filed earlier this month in Columbus, Ohio state court by comparison shopping search company myTriggers, alleges that Google unlawfully dropped myTriggers' quality score as part of a plan "to ensure that Google can continue to exert control over search advertising." As a result of the quality score change, the cost of myTriggers' search ads allegedly rose by as much as 10,000% -- a price increase that forced the company to virtually stop purchasing search ads, according to the lawsuit.

The price of search ads on Google typically results from a combination of the amount an advertiser bids to appear as a paid-search ad when users query on specific keywords and on the advertiser's quality score, which is based on Google's assessment of the landing page's relevance to the keywords.

But myTriggers alleges in its lawsuit that Google does not hold all search marketers to similar standards when it comes to quality scoring. "On information and belief," the lawsuit alleges, "Google enters into agreements with a number of search websites, including rival shopping comparison sites, that allow these sites to participate in AdWords keyword auctions without being subject to the same 'quality' scoring Google appplies to other search rivals, including myTriggers."

MyTriggers also alleges that it wasn't able to compensate for the drop-off in its search ads on Google by advertising on other search engines. "Due to Google's dominance, rival search sites such as Yahoo and Microsoft could not save myTriggers," the company says in its legal papers.

In addition, myTriggers asserts that it posed a challenge to Google by monetizing many searches on a cost-per-action basis -- a model that, it says, "threatened to undermine Google's revenue model and, ultimately, its dominance in paid search results."

A Google spokesperson said that myTriggers' claims "are entirely without merit" and that the company will "defend vigorously against them."

Meanwhile, Joe Bial, a lawyer with one of myTriggers' law firms -- Cadwalader, Wickersham & Taft -- says he hopes the lawsuit will proceed as quickly as possible. "We think, for these companies that are being put out of business, it's important that these cases move expeditiously," he said.

Cadwalader, Wickersham & Taft also represents Tradecomet.com in a similar antitrust lawsuit filed against Google last year in federal district court in New York. Cadwalader's Charles "Rick" Rule, listed as one of myTriggers' attorneys, has represented Microsoft on some antitrust matters.

MyTriggers.com's CEO, Glenn Meyers of Greenwich, Conn., was among Silicon Alley's most prominent entrepreneurs during the dot-com era. A decade before launching myTriggers, he founded and served as CEO of RareMedium Group, which helped companies develop Web sites and also acquired other companies, including entertainment network Live Universe.

Until 2008, MyTriggers -- which operates three comparison-shopping sites -- had been a big search advertiser on Google. At one point, Google gave myTriggers a $250,000 monthly line of credit for search ads.

The legal dispute between the two companies started last month, when Google sued myTriggers for allegedly failing to pay more than 335,000 in search ad fees. Google brought the case the case in state court in Ohio, despite a provision in the AdWords contract requiring all disputes to be litigated in California. In other cases, Google has attempted to enforce that term in court. Late last week, the company alleged that search marketer Flowbee broke the AdWords contract by bringing a trademark infringement lawsuit against Google in Texas.

5 people recommend this article. 



AUTHORS

ARCHIVES

Recent Online Media Daily Articles
Watchdog Cautions FCC Against Sliding Down Slippery 'Paid Prioritization' Slope    
The influential watchdog group Center for Democracy & Technology has told the the Federal Communications Commission...
Welchers: State Supreme Court Overturns Ruling Allowing Online Gambling Site   
Washington's state supreme court has ruled that the site Betcha.com violates anti-gambling laws, even though it...
Tiffany Promotes iPhone App On NYTimes.com, WSJ.com   
Tiffany & Co. is no stranger as an advertiser to the print or online pages of...
Bump And Run: NY Jets Facebook Game Connects Fans, Generates Revenue   
The NY Jets released a social video game in Facebook to feed the fans' love for...
Google Rolls Out Instant Search    
Google made searches faster Wednesday with a feature that allows results to appear as queries are...
SocialVibe Launches SVnetwork, Taps Millions Of Third-Party App Users   
After months of beta testing, SocialVibe Inc. Tuesday launched the SVnetwork, a brand advertising network claiming...
Paid-Search Marketing Changes With The Weather    
Cooler weather should have paid-search marketers hopping, as many quickly adjust ads to changing patterns and...
MTV Partners With AT&T On Backflip Promo   
In its latest collaboration with MTV Networks, AT&T has launched a new ad campaign for the...
MIT Study Suggests Social Networks Influence Behavior    
Research conducted at the Massachusetts Institute of Technology (MIT) could provide insights for technologists designing the...
IDC: Android To Outpace iOS, Smartphone Sales Up 55.4% In 2010   
Android will edge out Apple's iOS to become the third-most pervasive mobile operating system, with a...
>> Online Media Daily Archives 
ABOUT MEDIAPOST • CONTACT EDITORIAL • MEDIA KIT • RSS FEEDS • PRIVACY/TERMS & CONDITIONS
©2010 MediaPost Communications. All rights reserved.
1140 Broadway, 4th Floor, New York, NY 10001
tel. 212-204-2000, fax 212-204-2038, feedback@mediapost.com