By Sumit Vohra
Google was fined a sum of 136 crores for showing biased results in their online search. The Competition Commission of India (CCI) declared this verdict on Thursday after considering the complaints filed by Matrimony.com and Consumer Unity & Trust Society (CUTS) against Google LLC, Google India Pvt Ltd and Google Ireland Ltd.
Allegations against Google
Google has always portrayed its intentions as being focused on innovation, to support the evolving needs of users. However, the allegations against unfair algorithms and policies exercised by Google have done nothing but restrict competition and hamper innovation of its users. The results shown by Google were discriminatory for their advertisers, causing losses to the competitors. In a statement by the spokesperson, Google has confirmed that on the majority of issues they examined, their conduct complied with Indian competition laws. However, the narrow concerns identified by the Commission would be further assessed and adhered to by them as a correcting step.
On the basis of the report submitted by the Director-General, four aspects consisting of Google AdWords, Google results, advertising companies and search policies were taken into consideration for the judgement. Upon assessing the reports from these judgements, CCI, identifying Google to be guilty of malpractices, declared a fine making Google liable to pay 5% of average annual revenue generated from its Indian operations over the three years starting from FY15, amounting to approximately 136 crores, which have to be deposited within 60 days.
Views of the Commission and victim
The Commission is cognizant of the fact that any intervention in technology markets has to be carefully crafted lest it stifles innovation and denies consumers the benefits that such innovation can offer. “This can have a detrimental effect on economic welfare and economic growth, particularly in countries relying on high growth such as India,” the order said.
While the order was approved by a majority consisting of CCI chairman D K Sikri and three other members, two members issued a dissenting order saying that they don’t find Google in violation of Section 4 of the Competition Act.
On the other hand Naval Chopra, a partner at Shardul Amarchand who represented Bharat Matrimony seemed a bit surprised by the small amount of fine imposed given the magnitude of the case. “Whilst finding Google to have abused its dominant position, the CCI has nonetheless exercised restraint in recognizing the dynamic nature of online markets and not found Google guilty of every allegation,” Chopra told Reuters.
Google around the world
The decision comes as another jolt for Google search engine. Google which has already been fined €2.4bn by European Union for the abuse of its dominance of the search engine market in building its shopping comparison service, now has to arrange for another $21 million for infringing anti-trust conduct in its Indian counterpart.
Similar kind of abuse have also been reported in other countries as well and Google should be prepared to correct this to prevent any further damages.
Featured Image Source: Visual Hunt
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