Google faces much as $5B fine if found guilty of antitrust probe in India

By Nicel Jane Avellana

Mar 10, 2014 06:17 AM EDT

Google could be fined a hefty $5 billion if an investigation launched two years ago by the competition regulator in India will reveal that the search giant violated antitrust laws in the country, TechCrunch reported.

The two-year old probe started in 2012 after the advocacy group CUTS International and a domestic wedding site complained that Google exploited its commanding lead in Internet search and advertising. The Competition Commission of India posted a research paper first published in 2012 which covered the extent of the investigation. That research also said that Google's search was the search engine that Google's Chrome, Android smartphones and Chrome OS all promoted, the report said.

The research said, "The issues identified in respect of Google definitely raise doubt about the conduct of the Google and needs in- depth investigation to determine whether such practices relating to search engines and advertising search market are also being resorted to in India. This is because Indian market also has no. of vertical search engines which may be feeling the brunt."

As early as 2012, the competition watchdog said it had "already found "prima facie" evidence that Google had abused its dominant market position by being discriminatory in allotting keywords to matrimonial site Bharatmatrimony.com." The CCI also said that the investigation will concentrate on Google Ad Words, the report said.

A spokesperson of Google India said it was working with CCI in the probe. This is not the first time that the search giant has been embroiled in antitrust issues. Last month, Google entered a settlement with the European Commission and avoided a possible $5 billion penalty or business restructuring, the report said.

In India, around 200 million people use the Internet. It also has a flourishing e-commerce sector. These provide Google with a very good chance to make up for its weak footprint in China. However, as the antitrust investigations have shown, questions have arisen over the company's use of search to get people to use its own services, the report said.

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