Is Google really using its power to rig results? If yes, it is in deep trouble

The Competition Commission of India (CCI) has accused Google of abusing its dominant market position to rig search outcomes and if proven right, this can lead to long regulatory battle.

Queries were raised by the watchdog to which 30 businesses, including Flipkart, Facebook, Makemytrip.com, Nokia’s maps division, and other social networks, travel and content sites, responded and complained that Google abused its dominant market position.

Based on the corroborated complaints, the CCI director-general has filed a report that accuses Google of abusing its dominant position to rig search outcomes, both the actual search result as well as sponsored links. This marks the first case globally where an anti-trust body is formally raising such charges against Google.

Google has time till September 10 to file its response to the findings and present itself before the seven-member commission headed by Chairman Ashok Chawla, a week later.

The CCI may also impose a fine up to 10% of Google's income.

Meanwhile, Google said it was reviewing the report from the CCI and exuded confidence that they follow prescribed Indian laws.

As per the CCI’s report, Google is liable on two counts, first being Google's proprietary content and second on sponsored links.

Proprietary content means that for instance, even though a website may have a higher hit rate for a specific section, Google’s content is given priority. Like Google Hotels gets preference over other travel portals that may have higher traffic and therefore mathematically more appropriate as first results of a search.

Flipkart stated that it found search results to have a direct correlation with the amount of money the e-Commerce portal spends on Google advertising.

Meanwhile, the CCI report dismisses Google's submission that its nature of search is similar to that of Facebook and Twitter, which the report says are social networks, not web searches.

Google's using foreign arbitration clauses in case of disputes is also considered abuse of dominance, according to the report.

Though Google can seek more time to respond to the CCI report, it was fined Rs1 crore last year for delaying information the commission had sought.

Google’s case will be represented by law firms AZB & Partners and Economic Law Practice.

(Image: Josephmallozzi.wordpress.com)