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?