French navigation data provider NavX have filed another lawsuit against Google, claiming that the company have abused their position in online advertising and have tripled their claim for damages.
In June 2010 the French Competition Authority ordered Google to change their practices in a settlement of a complaint from NavX regarding a similar issue, this case was closed in October 2010. Closely afterward NavX filed another claim against Google in the Paris Commerical Court asking for €7 million in damages. They have returned again to raise the claim to €23 million (around £20 million).
Google suspended their AdWords Account without explanation in November 2009, causing NavX to complain to the authority. Google said later that they closed the account based on their code of practice for advertisers. This disallows the promotion of “illegal traffic devices that evade traffic laws.” NavX don’t actually sell devices however, they sell databases of radar speed trap locations, which subsequently allow GPS receivers to warn drivers of the approaching traps.
NavX are asking the court to rule that Google are abusing their dominant position by discriminating against them by closing their commerical relationship with motive and by refusing to reactivate the account. NavX have had to get a financial valuation expert to analyse potential damages to the company due to this.
Kitguru says: The outcome of this case could lead the path for future claims.