CCI imposes Rs 136.86 cr penalty on Google for abusing its dominant position

The fair trade regulator, Competition Commission of India (CCI) has imposed a penalty of Rs.135.86 crore for abusing its dominant position in online general web search and web search advertising services in India.

The order was passed in response to information filed by Matrimony.com Limited and Consumer Unity & Trust Society (CUTS) in 2012.

The CCI in its order noted that the allegations against Google in respect of search results essentially centered around the design of Search Engine Result Page (SERP). Exhibiting a self-imposed regulatory forbearance from scrutinizing product designs in ascertaining anti-trust violations, CCI also noted that product design is an important and integral dimension of competition, undue intervention in designs of SERP can affect legitimate product improvements.

The regulator further observed in its order that Google, being the gateway to the internet for a vast majority of internet users due to its dominance in the online web search market, is under an obligation to discharge its special responsibility.

Further, prohibitions imposed under the negotiated search intermediation agreements upon the publishers have been held to be unfair as they restricted the choice of these partners and prevented them from using the search services provided by competing for search engines.

The watchdog has also observed in its order that 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 and the competitors were denied access to the online search syndication services market due to such a conduct.

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Google now has 60 days to deposit the fine, the commission said.