Update: LendingTree claims in a lawsuit versus partner Mortech that search engine Google will enter the market for offering mortgage loan quotes, pitting it against LendingTree. LendingTree claims that Mortech, which provides automated lender offers for LendingTree, intends to make its pricing engine services available for use online through Google's new service. LendingTree is asking the court for a temporary restraining order and preliminary injunction enjoining Mortech from working with Google.
Google will enter the market for offering mortgage loan quotes,
according to a lawsuit filed by LendingTree in the District Court for the
Western District of North Carolina.
LendingTree filed the lawsuit August 25 versus technology
partner Mortech, alleging the company violated its contract with LendingTree
by partnering with Google to launch an online mortgage loan aggregator service
similar to LendingTree. The competing service is expected to launch in August
or September, according to a copy of the complaint obtained by eWEEK.
New competition in itself doesn't merit a lawsuit, but LendingTree
claims that Mortech, which provides automated lender offers for LendingTree, intends
to support Google's new Web service with its pricing engine. This could breach a confidentiality agreement Mortech signed with
LendingTree limiting its ability to make its pricing engine available to other
Web loan aggregators.
Resource Library:
As proof, LendingTree also said it possesses screenshots
of the trial version of Google's service that prove the search engine will
provide customers with conditional loan offers in addition to lenders' contact
information. LendingTree declined to provide the screenshots to eWEEK.
LendingTree claims it tried to resolve the dispute in
phone calls with Mortech but took legal action when this failed. "We
will vigorously protect our contractual rights, our company, our customers and
our clients in this matter," said LendingTree CEO and Founder Doug Lebda
in a statement.
LendingTree is asking the court for a temporary
restraining order and preliminary injunction enjoining Mortech from working
with Google. The North Carolina court has scheduled a hearing on the matter for
September 2.
Update: Google told eWEEK it would not comment on the suit because it is not party to it, but added that:
Were constantly
looking for new ways to help people find what they are looking for on the
Internet. As part of that effort, we are currently working on a small ad unit
test that will run against a limited number of mortgage-related search queries
in the U.S. We have a number of experiments going on at any one time, but we
don't speculate on future product development."
Google has indeed been looking to broaden the ways it
collects search advertising revenue. The company has been dipping its toe in a
number of areas that lead consumers back to its search engine. For example, the
company has created a mobile operating system, a Web browser, and is planning
to offer an operating system for netbooks. These applications and platforms are
free, but are designed to bring more users searching to Google.
LendingTree and Mortech have cultivated a close
partnership. As recently as June 23, representatives from LendingTree and
Mortech met to discuss a number of ideas that LendingTree is currently
developing and intends to bring to market in the future. The mortgage quote
specialist claims that, by working with Google, Mortech will disclose
proprietary and secret information that it has about LendingTree, including
ideas for future products.
"Mortech will undoubtedly use this information
during the course of its relationship with Google and such disclosure will
irreparably damage LendingTree's future business," according to the claim.
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