NEW DELHI – India’s antitrust watchdog on Thursday imposed a Rs 1.36billion (Rs 136 crore) fine on Google for “search bias” and abuse of itsdominant position, in the latest regulatory setback for the world’s mostpopular internet search engine.
The Competition Commission of India (CCI) said Google, the core unit of USfirm Alphabet Inc, was abusing its dominance in online web search andonline search advertising markets.
“Google was found to be indulging in practices of search bias and by doingso, it causes harm to its competitors as well as to users,” the CCI said ina 190-page order.
“Google was leveraging its dominance in the market for online general websearch, to strengthen its position in the market for online syndicatesearch services,” the CCI said.
However, the CCI said it did not find any contravention in respect ofGoogle’s specialised search design, AdWords and online distributionagreements.
A Google spokesman said the company was reviewing the “narrow concerns”identified by the commission and will assess its next steps.
“We have always focused on innovating to support the evolving needs of ourusers. The Competition Commission of India has confirmed that, on themajority of issues it examined, our conduct complies with Indiancompetition laws,” he said.
The Indian watchdog’s order is the latest antitrust setback for Google.Last year, The European Commission imposed a record 2.4 billion euro ($3billion) fine on the company for favouring its shopping service anddemoting rival offerings. Google has appealed against the order.
In India, the Commission found, that Google through its search design hadplaced its commercial flight search function at a prominent position on thesearch results page to the disadvantage of businesses trying to gain marketaccess.
The Indian ruling brings to an end a probe first started by the watchdog in2012 on complaints filed by matchmaking website Bharat Matrimony and anot-for-profit organisation, Consumer Unity and Trust Society (CUTS).
For infringing antitrust conduct, the Commission decided to impose a fineat the rate of 5 percent of the average total revenue generated by thecompany from its Indian operations.
Naval Chopra, a partner at law firm Shardul Amarchand who representedBharat Matrimony in the case, said he was surprised by the small amount ofthe fine imposed on the US tech giant.
“Whilst finding Google to have abused its dominant position, the CCI hasnonetheless exercised restraint in recognising the dynamic nature of onlinemarkets and not found Google guilty of every allegation,” Chopra toldReuters.
The Indian watchdog also expressed disappointment with Google for saying itwas not possible to collate all the revenue data in the time allotted.
Google will need to deposit the fine within 60 days, the Commission said.The order was passed by a majority of 4-2 with two members dissenting. -AGENCIES