Google Inc (GOOG) is Being Investigated by the Competition Commission of India for Market Abuse

Google MountainView Campus

Several organizations such as Flipkart, MakeMyTrip Limited (NASDAQ:MMYT), Facebook Inc (NASDAQ:FB) and others have confirmed allegations that search giant Google Inc (NASDAQ:GOOG) took advantage of its commanding market position.

This was in response to an investigation by the Competition Commission of India. As per sources, the quasi-judicial regulatory body’s preliminary report has raised pertinent concerns regarding Google’s handling of its online advertising services and search results as well as online advertising services.

As per the responses from 30 enterprises across multiple industries, the previous week saw the CCI director-general filing a report charging Google of taking unfair advantage of its commanding position to rig search results. The latter applied to both sponsored links and actual search results. This is the first instance worldwide involving an antitrust body making formal charges against the search giant.

Google is mandated to respond to the findings by a September 10 deadline. A week afterward it has to appear before the Chairman Ashok Chawla led seven-member commission. There may be many hearings required for the commission to arrive at a decision. Also, the decision can be appealed against in the Indian Supreme Court. If Google is proved to be guilty, the commission may require the organization to alter the way it conducts business.

Google commented that they were presently reviewing the CCI’s investigation report. They reiterated that they would fully co-operate with the CCI and believe that they operate complying fully with the country’s competition laws. Courts and regulators globally include in Germany, Taiwan, Brazil and others have probed several of the issues highlighted by the report and given the organization a clean chit earlier.

In the scenario of Google found guilty of illegal activities, the company may be fined up to 10% of gross income. Coupled with the EU’s charges, Google may be faced with a pretty costly payout. A guilty verdict could have significant bearing on Google’s growth in India. In this country, the search giant dominates Internet searches among the it’s 300 million online users.

The company is increasingly introducing its Android phones and other initiatives to draw in more folk to its operating system.

Sources: digitaltrends, indiatimes