Google does have a monopoly in France

Following the recent announcement that Google is to be scrutinised by an EU anti-trust probe, the search giant received a further blow this week when France’s competition watchdog, Autorite de la Concurrence, stated that the company did hold a dominant position in the online advertising market, as it applies to search engines.

Although the regulator were quick to point out that Google could, and would, only be sanctioned if they abused this position, the search engine were equally speedy to jump on the defensive, describing themselves as ‘one of many options for advertisers’.

Latest industry figures show Google captured a 43% share of the online advertising market last quarter, with second place going to Yahoo on just 8.7% and Microsoft taking the bronze medal with 3.2%, so there is a clear dominance here.

However, although the Autorite de la Concurrence has raised concerns about this, in response to an enquiry ordered by the French Economy Ministry, they are the first to point out that it is not necessarily a bad thing: ‘This dominant position is not reprehensible: it results from a great deal of innovation, supported by significant and continuous investments’. They further went on to point out that Google is further inhibited by competition law.

Although the French decision looks unlikely to result in any sanctions or backlash for Google, it is an unwelcome development at a time when the eye of the EU, with a track record of handing out hefty fines, turns on Google and its domination of the world online advertising market.