New lawsuit paints Google as the meanest anti-competitive bully out there

Dec 28, 2011 15:10 GMT  ·  By

Google is no stranger to lawsuits. It gets hit by one quite often and it's been in the crosshairs of government regulators, anti-trust bodies and so on. But that isn't stopping anyone from going at the company.

The latest to join the list is buySAFE, a company that offers online retailers a 'safe-shopping service.' Services like these act as a badge of trust that smaller online stores can display which attest to potential customers that they're legit.

It just so happens that Google has started offering a service very similar to this. So similar in fact that buySAFE is claiming patent infringement among other anti-competitive practices by Google in its lawsuit.

Google Trusted Stores is a service launched a couple of months ago and available only to a few retailers, in a limited beta phase.

In its lawsuit buySAFE is making some very serious accusations against Google. It starts with patent infringement, arguing that Trusted Stores uses technology developed by buySAFE which Google knowingly and willing has incorporated into its service.

Google was able to gather info about the patent and more about the company during 2006 to 2008 when Google was allegedly interested in a partnership of sorts with the company.

Later, it hired an exec from a company that used buySAFE, therefore getting access to vast information about the buySAFE, the company and its technology. That exec now runs Google's Trusted Stores.

It gets even better. buySAFE argues that Google told at least several prospective Trusted Stores customers that using the service ensured they would get better ranking in the organic search results.

In fact, buySAFE argues, the "advantage is so significant that few, if any, online merchants will  have any choice but to use Google's Trusted Stores program."

Not only that, but Google told online stores that they could not use both buySAFE and their own service and the company even offered the service for free to some stores.

Even though Trusted Stores is in testing with only about 20 sites, buySAFE says the move has had a "drastic" effect on the company's growth rate. Google's evils don't stop there, the company allegedly timed the launch of Trusted Stores to coincide with buySAFE's efforts to raise additional capital.

Of the claims above, the one that is going to get the most attention is the one referring to organic search results ranking. Google has long maintained that it does not in any way alter algorithmic search results and it does not favor anyone.

If the allegations can be backed up by evidence, Google would be in pretty deep water, considering the trouble it's already having. But that's a rather big 'if.'

Many of the claims in the lawsuit sound more like a disgruntled competitor than a legitimate illegal action. Google hiring people remotely connected to buySAFE is not illegal. Nor is it trying to find more about the business.

Offering its product for free is not illegal either and neither is requiring customers to use Trusted Stores exclusively. Considering the current climate surrounding Google, this should be an interesting lawsuit to watch.