Indian Antitrust watchdog has fined Google a Rs.135.86 ($21.17 million) over “search bias” and abuse of its dominant position. Competition Commission of India (CCI) says that Google; a part of Alphabet is abusing its dominance in online web search and online advertising markets.
Furthermore, CCI said that it did not find any actions from Google’s that oppose the specialized search design, AdWords, and online distribution agreements. Commenting on the same, a Google spokesperson said that the company is reviewing the “narrow concerns” identified by the Commission and will assess its next step.
Last year, the European Commission imposed a record 2.4 billion euro ($3 billion) fine on the company for somewhat similar where the company was found favoring its shopping service and demoting rival offerings. Google has appealed against the order. However, Google is found guilty of placing its commercial flight search function at a position that is favorable to it on the search results page which indirectly is causing damage to the businesses trying to gain market access.
This ruling also put an end to the probe that was first started by the watchdog in 2012 based on the complaints filed by Bharat Matrimony; a matchmaking website and a not-for-profit organization, Consumer Unity and Trust Society (CUTS). The commission has decided to impose a fine at the rate of 5 percent of the average total revenue generated by the company from its Indian operations. Google needs to deposit the imposed fine within 60 days.
Commenting on the same CCI said:
Google was found to be indulging in practices of search bias and by doing so, it causes harm to its competitors as well as to users. 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.
Commenting on the CCI order, Murugavel Janakiraman, Founder and CEO, Matrimony.com, said:
The CCI’s order is a shot in the arm for the Digital India initiative and will encourage the Indian internet ecosystem, in particular online start-ups. This order is significant as the CCI recognises that Google is the gatekeeper to the internet and has a special responsibility to ensure a level playing field.