{"id":195150,"date":"2018-04-11T10:47:30","date_gmt":"2018-04-11T05:17:30","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=195150"},"modified":"2020-07-20T17:03:54","modified_gmt":"2020-07-20T11:33:54","slug":"google-penalised-for-anti-competitive-conduct","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/04\/11\/google-penalised-for-anti-competitive-conduct\/","title":{"rendered":"Google penalised for anti-competitive conduct"},"content":{"rendered":"<p style=\"text-align: justify;\">After three years of rigorous investigation, the Competition Commission of India (CCI) has announced its landmark decision<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> against<img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-195158 alignright\" src=\"http:\/\/blog.scconline.com\/wp-content\/uploads\/2018\/04\/Sanskriti-Jain-235x300.jpg\" alt=\"\" width=\"235\" height=\"300\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/04\/Sanskriti-Jain-235x300.jpg 235w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/04\/Sanskriti-Jain-768x982.jpg 768w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/04\/Sanskriti-Jain-47x60.jpg 47w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/04\/Sanskriti-Jain.jpg 1330w\" sizes=\"auto, (max-width: 235px) 100vw, 235px\" \/> Google, holding Google guilty of contravention of competition law on three counts out of the many investigated and imposed a penalty of Rs 135.86 crores upon Google. Informations against Google were filed by bharatmatrimony.com and Consumer Unity and Trust Society (CUTS) in 2012. CCI, by majority of 4:2, has held Google guilty of abusing its dominant position by indulging into search bias and for imposing certain restrictions upon its direct search intermediation partners.<\/p>\n<p style=\"text-align: justify;\">The Commission has analysed the conduct of Google in two separate markets of \u201cOnline General Web Search Services in India\u201d and \u201cOnline Search Advertising Services in India\u201d, wherein both, Google was found to be undoubtedly dominant. Keeping in mind that intervention in digital markets by a regulatory authority should be \u201ctargeted\u201d and \u201cproportionate\u201d lest it stifles innovation, CCI examined the various innovative features introduced by Google in the design of its results page and the effect of these new product designs on the web publishers as well as the users. Though CCI found no problem with Google\u2019s Universal Results (groups of results of a specific type of information like news, images, local, etc.), OneBoxes (display box showing the exact answer to user query from one web publisher selected by Google) and Commercial Shopping Unit (sponsored unit on top\/right of results page showing advertisements with images from which Google earns revenue). Google was found to be on the wrong side of law with respect to the display of Universal Results at fixed 1st, 4th and 10th positions prior to October 2010. The majority was of the view that such fixed positions were not based on relevance and therefore, may have misled the users. However, the minority noted that since Google has self-corrected such conduct long back, any need for regulatory intervention is obviated.<\/p>\n<p style=\"text-align: justify;\">Next, in regard to Google Flights Commercial Unit, the majority has found contravention by Google as firstly, prominent placement of Flights Unit on results page pushes down third-party travel verticals (like MakeMyTrip, Goibibo, etc.) which may be more relevant for the users leading to unfairness to both travel verticals as well as the users; and secondly, since clicking on \u201csearch flights\u201d link in this Commercial Unit takes the users to Google Flights vertical page, it amounts to unfair diversion of traffic by Google to its specialised search vertical. On the other hand, the minority on this count has observed that Commercial Flights Unit is nothing but an enhanced ad format and it is clearly distinguished by labelling the Unit as \u201csponsored\u201d. Also, there is no evidence on record to establish any actual misleading or degradation or user diversion as a result of such Unit as was the case with Google Shopping Commercial Unit in the European Union. Further, since the Flights Unit does not offer any booking service but is only a comparison service, it cannot as such be compared with third-party travel verticals at all.<\/p>\n<p style=\"text-align: justify;\">In the other market of online search advertising services, CCI has analysed three issues and found no problem in either of them. With regard to Google\u2019s advertising platform of AdWords, CCI has opined that Google shares more than sufficient information with the advertisers to enable them to assess the performance of their ads and it does not discriminate with its House Ads. In respect of multihoming, CCI has found that AdWords API terms and conditions do not in any manner restrict the advertisers from transferring their ad campaigns on multiple platforms. In regard to allegations of trade mark law violation by Google allowing third parties to bid on trademarked keywords or using trademarked terms in AdTexts, CCI has very astutely restricted its jurisdiction noting that the same falls within the regulatory domain of the civil courts and an \u201cisolated transactional imperfection\u201d on account of \u201cdelay in whitelisting\u201d cannot amount to competition law violation by Google.<\/p>\n<p style=\"text-align: justify;\">Lastly, two more conducts of Google have been analysed \u2014 one with regard to Google\u2019s distribution agreements and other with regard to Google\u2019s direct intermediation\/syndication agreements. In respect of distribution agreements which Google has with for instance Apple, whereby Google is the default search service provider in Safari web browser, CCI has found no \u201cimposition\u201d as default browser can be changed by the users at will. In regard to direct intermediation\/syndication agreements, which enable website publishers to place Google services on their web pages, CCI has observed that Google offers two types of AdSense programs \u2014 search intermediation which enables web publishers to place Google search bar on their websites and ad intermediation which enables publishers to show Google ads on their websites, both search ads (AFS \u2014 AdSense for Search) and display ads (AFC \u2014 AdSense for Content). In direct ad intermediation, no contravention was found; however, in direct search intermediation, the restriction placed by Google on inclusion of any substantially similar search bar by web publishers on their websites has been found to be violative of the law. However, the minority, on this count too, has dissented and observed that since such restriction is not available in the online search intermediation agreements entered into by Google which are openly available to all web publishers, but is only put in the directly negotiated search intermediation agreements, the choice of the web publishers (consumers) is not forcefully restricted but rather such restriction is accepted at will. Further, since no independent \u201csearch intermediation\/syndication services\u201d market has been analysed, the finding given by the majority seems a bit presumptive.<\/p>\n<p style=\"text-align: justify;\">Hence, as per the minority, no case of contravention by Google on any issue, is made out. However, the majority, taking Google\u2019s revenue from its India operations into account, has imposed a penalty @ 5% of its average turnover, amounting to Rs 135.86 crores upon Google. Google, being an intricate part of every internet user\u2019s life, this decision<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> of CCI is bound to have a wide impact. Since the matter involves high stakes, it is likely to go in appeal as well, may be even from both sides. However, as for now, CCI, vide this order, has shown exemplary understanding of the technical issues at hand, and yet again proven its balanced judicial prudence.<\/p>\n<p style=\"text-align: justify;\"><a href=\"#_ftnref1\">[1]<\/a> <em>Matrimony.com Ltd.<\/em> v. <em>Google LLC<\/em>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/o4XI1WJ7\">2018 SCC OnLine CCI 1<\/a>.<\/p>\n<p style=\"text-align: justify;\"><a href=\"#_ftnref2\">[2]<\/a>\u00a0<i>Ibid.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Sanskriti Jain*<\/p>\n","protected":false},"author":91,"featured_media":193324,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[42503,1191],"tags":[18481,5461,2889],"class_list":["post-195150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-analysis","category-op-ed","tag-anti-competitive-conduct","tag-cci","tag-google"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Google penalised for anti-competitive conduct | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2018\/04\/11\/google-penalised-for-anti-competitive-conduct\/\" \/>\n<meta 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Case] |NCLAT upholds Rs1,337 crore penalty on google for abuse of dominant position in Android Mobile Device Ecosystem","author":"Editor","date":"March 29, 2023","format":false,"excerpt":"The Tribunal while upholding the impugned order passed by CCI dated 20-10-2022, set aside 4 key directions issued in paragraphs 617.3, 617.9, 617.10 and 617.7.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"NCLT","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-685.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-685.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-685.png?resize=525%2C300&ssl=1 1.5x, 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Bunker (Member), Mr. Sudhir Mital (Member), Mr. Augustine Peter (Member), Mr. U.C. Nahta (Member), Mr. G.P. Mittal (Member), addressed two cases i.e. Case No. 07 of 2012 and Case No.\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":239016,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/11\/cci-pre-installation-prominence-of-google-pay-on-android-smartphones-detailed-investigation-against-google-for-alleged-contravention-of-s-4-of-competition-act\/","url_meta":{"origin":195150,"position":4},"title":"CCI | Pre-installation &#038; Prominence of Google Pay on Android Smartphones: Detailed Investigation against Google for alleged contravention of S. 4 of Competition Act","author":"Bhumika Indulia","date":"November 11, 2020","format":false,"excerpt":"Competition Commission of India (CCI):\u00a0The Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members), prima facie opined that alleged conduct on the part of Google merit detailed investigation. Present information was filed under Section 19(1)(a) of the Competition Act, 2002 by the XYZ -- Informant\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6679,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/06\/24\/kerala-s-cinema-trade-associations-and-their-office-bearers-are-penalized-for-cartelization\/","url_meta":{"origin":195150,"position":5},"title":"Kerala\u2019s Cinema Trade Associations and their Office Bearers penalized for Cartelization","author":"Sucheta","date":"June 24, 2015","format":false,"excerpt":"Competition Commission of India (CCI): In the series of its orders against trade unions\/associations for anti-competitive agreements, the CCI yesterday found the arrangement relating to distribution of films for releasing between the Opposite Parties (Ops) namely, Kerala Film Exhibitors Federation (OP1), Kerala Film Distributors Association (OP2), and Kerala Film Producers\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/195150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=195150"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/195150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/193324"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=195150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=195150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=195150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}