CCI accuses Google of abusing search dominance in India

Final ruling on Sept 17; company can be asked to halt unfair practices or fined up to 10% of its revenues

India’s competition authority has accused Google of abusing its dominant position in online search, people with knowledge of the matter said, which if proven could force the US firm to alter its practices in a key market or even pay a big fine.

A preliminary report from the Competition Commission of India (CCI) found fault with Google’s handling of its online advertising services and search results, said the people.

Google, which just last month appointed India-born Sundar Pichai as its chief executive, is already facing a billion-euro fine from the European Union after accusations the company cheated competitors by distorting search results in favour of its shopping service. Google has rejected those charges.

 

The Indian regulator first began investigating Google in 2012, and a preliminary report was submitted to the top CCI officials about six months ago.  The CCI is expected to make a final ruling after a hearing on September 17, where Google will present itself before a seven-person CCI panel, the people said.

“We’re currently reviewing this report from the CCI’s ongoing investigation,” a Google spokesman said. The initial complaints against Google in India were filed by matchmaking website Bharat Matrimony and a not-for-profit organisation, Consumer Unity and Trust Society (CUTS).

Udai Mehta, assistant director at CUTS, said if found guilty, the CCI can either order Google to halt what it deems unfair practices or fine as much as 10 per cent of its revenues.

Google posted annual revenue of $66 billion for 2014.

A guilty verdict could impact Google's growth in India, where it dominates Internet searches among the country's 300 million online users and is increasingly launching its Android phones and other initiatives to get more people on its operating system.