Is Google Going Into The Loan Service Business? LendingTree.com Files Suit
Is Google going to start competing against its own advertisers?
According to a suit filed Tuesday by LendingTree.com, they might be planning to.
LendingTree filed suit against Mortech Inc. in federal court, claiming that Mortech is violating an exclusive agreement with LendingTree, by setting up a competing loan-referral service will reveal LendingTree trade secrets to Google, by working with Google on technology that automates pricing of lender offers.
LendingTree seeks an injunction against Mortech.
LendingTree says in the lawsuit that Google plans to launch its loan service by early next month.
Google in a written statement to the AP said that it is testing an advertising unit that involves a limited number of mortgage-related searches.
“We have a number of experiments going on at any one time, but we don’t speculate on future product development,” the company said in its statement to AP.
However the bigger question for the online advertising community will Google start offering other ad services that will compete with companies already buying PPC ad space from Google?
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I think this is just the beginning, you are likely to see more companies look for ways to sue GOOGLE and force more government restrictions on this company…I think you only have to look as far as the recent bankrate sale as a company that relies so heavily on Google organic search feeling pressure from potential changes in their traffic/revenue streams.
Companies/Industries that rely heavily on Google traffic could be pushed out of business overnight simply by Google removing them from there search results and replacing preferred sites or platforms…
A little transparency will go a long way and I think you will start to see the gov take a look similar to how they jumped on Microsoft and the operating system issues.
I wonder if IAC will take any action against Google like curtailing IAC (and related companies) activities with G.?
IAC still indirectly owns around 2.7 mil shares of Tree.com .
And, Diller likes to play hardball.
But, maybe any action by IAC might injure IAC’s business.
Lawyers = Whine