Before the F E D E R A L C O M M U N I C A T I O NS C O M M ISSI O N W ashington, D. C. 20554 In the Matter of: Preserving the Open Internet Broadband Industry Practices ) ) ) ) ) ) ) ) )
GN Docket No. 09-191 WC Docket No. 07-52
C O M M E N TS O F F O U N D E M Foundem1 here!"#$%!&'($#)*+,"#-.&&*/($#'/#)*$+./$*#(.#(0*#1.&&'$$'./2$# Preserving the Open Internet Notice of Proposed Rulemaking in GN Docket No. 09191 and WC Docket No. 07-52. !"#$%&'(#)%"* 3.%/4*&#5*,-.&*$#(0*#1.&&'$$'./2$#-.&&'(&*/(#(.#$**6'/7#89-(-based answers in determining whether to adopt rules that support Internet openness. Foundem recently outlined its case for search neutrality, arguing that the scope of the 3112$#+).+.$*4#Open Internet rules should be expanded to apply to search engines as well as to ISPs (Search But You May Not Find, New York Times2). Search e/7'/*$#09:*#!*-.&*#(0*#;/(*)/*(2$#79(*6**+*)$#9/4 are arguably as essential a component of its infrastructure as the network itself. <.7,*2$#.:*)50*,&'/7# dominance of search and search advertising, coupled with its ability to arbitrarily penalise rivals and systematically favor its own services, makes the need for search neutrality particularly pressing. 3.%/4*&2$ present submission describes in more detail why <.7,*2$#Universal Search mechanism poses an immediate threat to healthy competition and innovation. !"#$%&'()*+%(&,-.*/001)%2'*!"(''(#)(3)%*4056%7#7#$%*89$("7(1%* In May 2007, Google introduced what it calls =>/':*)$9,#?*9)-0@Aa mechanism for automatically inserting its own services into prominent positions within its natural search results. The following screenshot shows an example of <.7,*2$#.5/#+)'-*#-.&+9)'$./# service, Google Product Search, inserted at the top of <.7,*2$#$*9)-0#)*$%,($B##
http://www.foundem.co.uk/ http://www.nytimes.com/2009/12/28/opinion/28raff.html 28 December 2009.

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F igure 1: Googl!"#!$%&'"%!#()*#"+,%"*'!"-(!%."/0$1(##2"03+4567438"#',3219"$":%,;21!1*).":)$&!<" Universal Search result from Google=#",31":%2&!"&,;:$%2#,1"#!%>2&!? Product Search, as the top result (outlined in red for emphasis).
The following two screenshots show examples of (0)**#.8#<.7,*2$#.5/#services inserted near the top of <.7,*2$#$*9)-0#)*$%,($C#illustrating how little of the page can remain 9:9',9!,*#=9!.:*#(0*#8.,4@#8.)#9-(%9,#$*9)-0#)*$%,($B
F igure 2: Google search results for the qu!%."/1,@2$"67AA8"#',3219"*'%!!",+"B,,9)!=#",31" services (B,,9)!"C%,<(&*"D!$%&'?"B,,9)!"E!3#?"$1<"B,,9)!=#"F,(G(H!) placed third, fourth, and fifth (outlined in red).

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F igure 3I"B,,9)!"#!$%&'"%!#()*#"+,%"*'!"-(!%."/1,@2$"67AA8"illustrating how little of the page can H!")!+*"$>$2)$H)!"/$H,>!"*'!"+,)<8"+,%"$&*($)"#!$%&'"%!#()*#"(outlined in green) after Google has inserted its own services and sponsored links.
Crucially, Google determines the exact placement of its own services independently of the ranking algorithms it uses to determine the relative placement of all other results.3 The degree of favoritismAwhether they appear first or third, for exampleA is therefore */(')*,"#9(#<.7,*2$#4'$-)*('./D#<.7,*#calls this process of merging its own services with actual search results =!,*/4'/7@ (others have justifiably called it =bundling@4). !"#$%&'$#$%()&*$(%'+,$-#$&./0)1&12$&034%('1%/51/%$6&'$(%52&()78%0129'6&(3:& presentation mechanisms to provide what we see as just the first step in the evolution toward universal search.using it to blend content from [Google] Images, [Google] Maps, [Google] Books, [Google] Video, and [Google] News into our web results.; Marrissa Mayer, VP Search Products, May Universal Search transforms Googl*2$#ostensibly neutral search engine into an immensely powerful &9)6*('/7#-09//*,#8.)#<.7,*2$ other services. When coupled 5'(0#<.7,*2$#EF% share of the global search market6, this gives Google an unparalleled and virtually unassailable competitive advantage, reaching far beyond the confines of search. Universal Search allows Google to leverage its search engine monopoly into virtually any field it chooses. Wherever it does so, competitors will be

=This universal ranking syste m borrows heavily from our core expertise in web ranking, but also has new elements to leverage special signals pertinent to some of the verticals and to manage the page layout when results ought to be grouped. @#G9:'4#H9',*"C#I*94#.8#G*:*,.+&*/(#8.)#>/':*)$9,# Search, August 2007. http://searchengineland.com/an-insiders-view-of-google-universal-search-12059
http://nyls.mediasite.com/mediasite/SilverlightPlayer/Default.aspx?peid=bc9182b40a2d42219 4adaacc2ef5a201 Gary Reback speaking at the D Is For Digitise conference 5 http://googleblog.blogspot.com/2007/05/universal-search-best-answer-is-still.html 6 http://marketshare.hitslink.com/search-engine-market-share.aspx?qprid=5

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harmed, new entrants will be discouraged, and innovation will inevitably be suppressed. These are not hypothetical risks. Although Universal Search is still in its infancy, there are already compelling examples of the harm it has done to competitors across a range of markets.
+,-./01*23*4"0)"1*5-//)"6*
The preferential placement of Google Maps 9(#(0*#(.+#.8#<.7,*2$#$*9)-0#)*$%,($, which began in May 2007, played a significant role in unseating MapQuest from its +.$'('./#9$#(0*#>?2$#,*94'/7#./,'/*#&9++'/7#$*):'-*D
F igure 4: Unique monthly US visitors to Google M aps and M ap Q uest between January 2007 and November 2009 (Source: ComScore 7).
Some will suggest that the rapid rise of Google Maps can be attributed to superior functionality. But an analysis by Heather Hopkins of Hitwise found that many more users were still actively searching for MapQuest than for Google Maps at the time when <.7,*#J9+$2#()988'-#59$#$%)+9$$'/7#J9+K%*$(2$L#$0*#concluded that Google J9+$2#)'$'/7#()988'-#59$#the direct result of its preferential placement in <.7,*2$# search results: !<2$&('5$31&84&=887)$&>(?'&0'&(&%$'/)1&84&12$&@A30#$%'()&B$(%52C&'28%15/1&03& 12$&'$(%52&%$'/)1'&83&=887)$+=887)$&>(?'&%$5$0#$:&#0'01'&4%89&DE6FDG&/30H/$& search terms in the past four weeks, compared to 11,466 for MapQuest.
MapQuest receives most of its search traffic from searches for its brand name in other words from people actively searching for MapQuest. In the past four weeks 8 of the top 10 search terms sending visits to MapQuest were queries for the brand name, such as " mapquest" , " map quest" and " mapquest driving directions". These 8 terms accounted for 62% of visits from search to the MapQuest website. Contrast that to Google Maps for which only 2 of the top 10 terms were branded and these only accounted for 4.2% of the site's search traffic. As long as Google dominates search, MapQuest will face a tough battle for #0'01'I;8

The raw data used in this and ensuing figures attributed to ComScore is drawn from a Long Term Media Trends report commissioned by Foundem from ComScore in January 2010

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Visitor numbers to the UK2$#,*94'/7 online mapping services show a similar pattern of erosion:
F igure 5: Unique monthly U K visitors to Google M aps, Street M ap, and M ultiM ap between January 2007 and November 2009 (Source: ComScore).
+,-./01*73*8$%&'(#*8$)(1*9%./-$):%"*
Striking evidence of the anti-competitive effects of Universal Search can also be found in the product price comparison market. This example is particularly compellingC#/.(#,*9$(#!*-9%$*#<.7,*2$#.5/#$*):'-*C#<.7,*#M).4%-(#?*9)-0 (formerly Froogle), has been around since 2002 and was largely unsuccessful until its promotion through Universal Search: !<%(4405&18&=887)$&J%8:/51&B$(%52+2('&?)/99$1$:&03&12$&)('1&*$(%6&,20)$& 589?$1037&'$%#05$'&4%89&%0#()'+2(#$&7%8,3&8%&2$):&'1$(:*+K/1&=887)$& Product Search, so far, represents for the Internet juggernaut a not particularly %(%$&4(0)/%$+=887)$&J%8:/51&B$(%52+'(,&01'&"518ber [2007] unique visitor count decline a huge 79% from October 2006, according to market tracker L89B58%$I; Google's Pitch So Far Failing With Shoppers, CNN Money, December ! Traffic to Google Product Search -- form erly F roogle -- fell by 73.26%. This 0'3-1&188&'/%?%0'0376&.$5(/'$&01-'&381&#$%*&788:I; Jack Schofield, The Guardian, 23 December 200710 In December 2007, ironically just days after these articles were written, Google began promoting its beleaguered Product Search service through Universal Search. At the flick of a switch, this immediately placed <.7,*2$#.5/#+)'-*#-.&+9)'$./#service at.)#/*9)#(0*#(.+#.8#<.7,*2$#$*9)-0#)*$%,($#8.)#the vast majority of product-related shopping searches.
http://weblogs.hitwise.com/us-heatherhopkins/2009/02/google_maps_edges_closer_to_ma_1.html 9 http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-21631837.htm 10 http://www.guardian.co.uk/technology/blog/2007/dec/23/googlesgrowthbycomscorenum

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3.%/4*&2$#9/9,"$'$#.8#<.7,*#$*9)-0#)*$%,($#9-).ss a broad sample of product- and price-comparison-related search terms reveals the jaw-dropping scale and breadth of <.7,*2$ preferential placement of its own price comparison service:
F igure 6: Google ranking of leading U K price comparison sites across a broad sample of productprice-comparison-related search terms, as of 29 January 2010. Google Product Search results are shown in red; other price comparison service results are shown in shades of green.
To assess the impact of such comprehensive self-promotion, Foundem commissioned Long Term Media Trends data from ComScore for the leading players in this market. Not surprisingly, the data reveals a dramatic (%)/9).%/4#'/#<.7,*#M).4%-(#?*9)-02$# fortunes:
F igure 7: Unique monthly US visitors to Google Product Search between January 2007 and November 2009 (Source: ComScore).

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This significant increase in traffic to Google Product Search seems to have been largely at the expense of competing services. The following chart shows the percentage change in the number of unique monthly visitors to leading UK price comparison services between October 2007 (shortly before Google started to incorporate its price comparison service into Universal Search) and October 2009 (by 50'-0#('&*C#<.7,*2$#+)'-*#-.&+9)'$./#)*$%,($#5*)*#!*'/7#4'$+,9"*4#8.)#(0*#:9$(# majority of product-related shopping searches):
F igure 8: Percentage change in number of unique monthly visitors to the U K =#")!$<219":%2&!" comparison sites from O ctober 2007 to O ctober 2009 (Source: ComScore).
Whereas :'$'(.)$#(.#(0*#>N2$#,*94'/7#+).4%-(#+)'-*#-.&+9)'$./#$*):'-*$#8*,,#!"#an average of 41% over this period, UK visitors to Google Product Search grew by 125%:
F igure 9: Percentage change in number of unique monthly visitors to the U K =#")!$<219":%2&!" comparison sites (including Google Product Search) from O ctober 2007 to O ctober 2009 (Source: ComScore).

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Visitor numbers to the >?2$ leading product price comparison services show a similar pattern of erosion over the same period:
F igure 10: Percentage change in number of unique monthly visitors to other US Price Comparison sites from O ctober 2007 to O ctober 2009 (Source: ComScore).
By contrast, during this period, US visitors to Google Product Search grew by a remarkable 1,232%:
F igure 11: Percentage change in number of unique monthly visitors to US P rice Comparison sites (including Google Product Search) from O ctober 2007 to O ctober 2009 (Source: ComScore).
!@J%$#08/')*C6&=887)$&?%8:/51&'$(%52&'1%/77)$:&18&7$1&/'$:&.*&98%$&12(3&EM&84& =887)$&/'$%'+@B035$&01'&035)/'083&03&A30#$%'()&B$(%526C&=887)$&J%8:uct Search has become the largest and most important specialty shopping search $3703$&03&$N0'1$35$+=887)$&0'&12$&O037&48%&38,&(3:&12$&48%$'$$(.)$&4/1/%$&03& 120'&'?(5$+&*$1&12$0%&'28??037&?%8:/51&01'$)4&0'&'10))&034$%08%&03&01'&?%$'$31(1083&

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and usability to '89$&84&12$&812$%&)$(:037&'28??037&'$(%52&$3703$'I; InstantROI, 26 November 200811

9%"(0':)%"*

Through Universal Search, Google can divert traffic from its competitors to its own services largely at will. The rollout of Universal Search has been gradual, and, to a large extent, unnoticed by users. Google already gives preferential placement to its own Map, News, YouTube, Book, and Product Search services, and it has made it clear that it plans to continue expanding this practice into new services. The two examples considered here illustrate the discriminatory market power of an overwhelmingly dominant search engine allowed to systematically favor its own services. But these examples are just the tip of the iceberg. Similar harm to competition and innovation is inevitable when Google extends this strategy into new domains, such as financial search, travel search, property search, job search, social networking, browsers, operating systems, mobile, and so on. There is an urgent need to constr9'/#<.7,*2$#4.minationAeither through competition or through regulation. Despite the recent US and European approval of the search alliance between Yahoo! and Bing, competition in search is unlikely to be sufficient, at least in the short term. Carefully considered regulation is therefore needed to codify the Network and Search Neutrality principles of non-discrimination and transparency and apply them equally across the entire Internet ecosystem.
Respectfully Submitted, Adam Raff Shivaun Raff Co-founders of Foundem and SearchNeutrality.org12 (a Foundem initiative). E mail: engage@searchneutrality.org cc: The Honorable Christine Varney, Assistant Attorney General for Antitrust, U.S. Department of Justice, The Honorable John Liebowitz, Chairman, U.S. F ederal Trade Commission, The Honorable J. Thomas Rosch, Commissioner, U.S. F ederal Trade Commission, The Honorable William E. Kovacic, Commissioner, U.S. F ederal Trade Commission.
http://instantroi.com/index.php/2008/11/26/google-product-search-shopping-optimization/ http://www.searchneutrality.org/

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Zanussi-Electrolux ZWF16581W Front loaded WM Features
Wash performance: A Spin efficiency: A Variable spin speed Maximum spin speed: 1600 Bio wash phase Delay start HiCarboran Tub Water fill: cold fill Push Button Functions: Temperature sel. 4 levels + cold wash, Spin sel. 3 levels (+ night & rinsehold), Soil level, Easy ironing, Extra rinse, Start/pause, Delay start setup "up", Delay start setup "down" Total exchange rinsing system
Product code : Bar Code :

629 8009279121173

PI Product Specifications
Product Group Brand Product name/family Product name / Commercial code Internal article number EAN code Built-in / Free-standing Installation type Removable top Cover door / Double door Loading type Door hinge Colour / Material panel Colour / material body Alternative colours available Connection Rating (W) Current (A) Voltage (V) Frequency (Hz) Approval certificates Length electrical supply cord (cm) Plug type Height with worktop (mm) Height without worktop (mm) Dimensions of the product (mm) Dimensions of the packed product (mm) Wheels Net weight (kg) Gross weight (kg) Energy efficiency class Energy consumption (kWh) Washing performance class Spin drying performance class Maximum spin speed (rpm) Capacity cotton (Kg) Water consumption (l) Noise level washing (dB(A) re 1 pW) Noise level spinning (dB(A) re 1 pW) Total annual water consumption (l) Total annual energy consumption (200 full loads) (l) Moisture content % on dry load after max. spin Average washing time cotton 60C EN 60456 (full load) (min) Energy / Water consumption kWh 95C cotton (kWh/l) Energy / Water consumption kWh 40C color (kWh/l) Energy / Water consumption kWh 40C easy care (kWh/l) Energy / Water consumption kWh 30C delicates (kWh/l) Energy / Water consumption kWh 30C woolens (kWh/l) Spin speed options Skip spin Wash optimization Self adjusting water level to load Foam control Balance control Water protection system Separate temperature control options Cold wash option Programme progress indicator Washing Machines Zanussi-Electrolux None ZWF16581W Free-Standing Not applicable No No Front Left White White Information Not Available 230-IMQ 180 UK 600X600 900X640X680 No 76.2 78.5 A+ 1.19 A A 119 0/0 0/0 0/0 0/0 0/0 Fixed No Fuzzy logic and balance control Yes Yes Yes Electronic pressostat Continuous Yes Yes
Programme progress indicator Digital countdown indicator Start delay options Start delay time max. (h) Half load option Pre-wash Quick wash Wool programme Rinse hold Delicates / Silk Water plus Door opening Tub material Drum volume (l) Drum material Hot & cold water intake? Filter system Included accessories Optional accessories Specification of product image
Yes No Continuous Information Not Available Yes - Automatic Yes No Yes Yes Yes Yes Handle Carboran 54 Stainless Steel No Information Not Available Child Lock Information Not Available EZWM070P000010.jpg