Competition Commission of India fines Google ₹1.36 billion for 'search bias'

Sunday, February 11, 2018

On Thursday, the Competition Commission of India (CCI), a government anti-trust watchdog, fined US-based internet technology company Google, a subsidiary of Alphabet, Inc. ₹135.86 crore (about ₹1.36 billion, US$21 million) for manipulating their search results in favour of its products and syndicates, which affected business of rival companies. In the 190-page long decision, CCI said, "Google was leveraging its dominance in the market for online general web search, to strengthen its position in the market for online syndicate search services".

In the ruling passed 4–2, the watchdog said, Google's "search bias" caused "harm to its competitors as well as to users". In 2012, Consumer Unity and Tests Society (CUTS), which is a non-profit organisation, and Bharat Matrimony filed a complaint against the search engine for manipulating the search results.

Google is to pay the fine within 60 days. CCI had fined them five percent of the average profit Google made over three fiscal years due to its Indian user base. Per the law, CCI could have fined Google up to ten percent of the profit.

Last year, Google was fined by the European Commission (EC) for favouring certain shopping services for the amount of €2.42 billion (about US$3 billion). That accounted for five percent of "average daily worldwide turnover of Alphabet", EC's official statement read. Google was also fined by Russian Federation Antimonopoly Service for US$6.8 million in 2016 for favouring its own digital services.

"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", Naval Shah, who was representing Bharat Matrimony from Shardul Amarchand law firm, told Reuters News agency.

A Google spokesperson said, "We have always focused on innovating to support the evolving needs of our users. The Competition Commission of India has confirmed that, on the majority of issues it examined, our conduct complies with Indian competition laws".

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Sources

"Google told to pay Rs 135.86 crore fine for abusing its power in India" — The Economic Times, February 9, 2018
"CCI issues order against Google for search bias, imposes penalty" — Competition Commission of India, February 8, 2018
Aditya Kalra and Aditi Shah. "India's antitrust watchdog fines Google for abusing dominant position" — Reuters, February 8, 2018
AP. "India's anti-trust regulator fines Google for 'search bias'" — Seattle Times, February 8, 2018
"Antitrust: Commission fines Google €2.42 billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service" — European Commission, June 27, 2017
Mark Scott. "Google Fined for Breaking Russian Antitrust Rules With Android" — The New York Times, August 11, 2016

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