Google at Center of Antitrust Probe in India

 
 
By Todd R. Weiss  |  Posted 2014-03-10 Email Print this article Print
 
 
 
 
 
 
 

Google faces a $5 billion fine in the ongoing probe, which is being conducted by the Competition Commission of India, a watchdog agency, according to a report.

Google is facing antitrust fines of $5 billion in India, where the company has been the subject of an antitrust investigation for some two years, according to a March 9 report in The Economic Times.

The probe is being conducted by the Competition Commission of India (CCI), which is a government watchdog agency that watches over business practices to ensure fair competition.

A Google spokesperson said that the company is "extending full co-operation to the Competition Commission of India in their investigation," The Economic Times reported.

The probe in India has been going on during the same time as similar antitrust investigations had been underway against Google in the United States and in the European Union (EU).

In India, as in the U.S. and European cases, the antitrust probe related to allegations that Google has been "abusing its dominant position in the Internet search engine space," the paper reported. If Google is found guilty of the allegations in India, it could be subject to a fine of up to 10 percent of its average annual revenues over the last three years, or about $5 billion, the paper reported.

In India, there are no provisions for settling such a case, the paper reported. Settlements were what resolved the similar cases in the U.S. and in Europe.

The CCI has referred the case to its investigation arm, the Director General (DG), according to The Economic Times, which "has also collected comments from third-parties with regard to this case" in preparation for making a report back to the CCI.

Antitrust probes around the world have been dogging Google for some time.

In February, after some 39 months, a settlement finally was reached between Google and the EU to bring an end to an antitrust case that has saddled Google in Europe since November 2010.

The settlement, which still faces formal final approval by the EU and its regulatory arm, the European Commission (EC), includes concessions from Google on how it will display competitors' links through the Google search engine, according to an earlier eWEEK report. The EU probe had been investigating Google's Internet search processes, which competitors including Microsoft, Expedia and British search services company Foundem, argued unfairly promoted Google's advertisers at the expense of competitors.

The pending agreement with the EU means that Google will change its display practices but not have to pay a fine that could have amounted to as much as $5 billion there. Under the terms of the apparent settlement with the EU, Google will more clearly identify its own paid ad content from its own customers when displaying search content to users, and will display them with unique identifications and separate placement to make their presence clearer to users. That will be done to address concerns from competitors that Google promoted its own ads more strongly than those from other online ad companies, according to the EU proposal.

"Within its Web search results, Google displays its own specialized search services more favorably than competing services," the EU stated. "In many instances, relevant competing services are as a consequence more difficult for the user to find. Users are not informed of this favorable treatment of Google's own services."



 
 
 
 
 
 
 
 
 
 
 
 
 

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