Google fined Rs. 136 crore by Competition Commission for 'unfair business practices in India'

Acting on complaints filed by Matrimony.com and Consumer Unity & Trust Society (CUTS) in 2012, the Commission informed that the penalty is being imposed on Google for “infringing anti-trust conduct”.

The allegation was that Google is abusing its dominant position in the search engine market. The complainants also accused Google of manipulating search results.

Google reacted to the development saying it is reviewing the "narrow concerns" of the Commission.

Its spokesperson in a statement said: "The Competition Commission of India has confirmed that, on the majority of issues it examined, our conduct complies with Indian competition laws. We are reviewing the narrow concerns identified by the Commission and will assess our next steps," the spokesperson said in a statement.

The CCI in its order noted that the allegations against Google in respect of search results essentially centred around design of Search Engine Result Page (SERP).

Exhibiting a self-imposed regulatory forbearance from scrutinizing product designs in ascertaining anti-trust violations, CCI noted in its order that product design is an important and integral dimension of competition, undue intervention in designs of SERP can affect legitimate product improvements, the CCI said in a press release.

CCI 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.

The CCI also noted in the order that ranking of Universal Results prior to 2010 were pre-determined to trigger at the 1st, 4th or 10th position on the SERP instead of by their relevance. Such practice of Google was unfair to the users and was found to be in contravention of the provisions of Section 4(2)(a)(i) of the Act.

However, CCI noted in its order that since October, 2010, Google has made display of such results on free floating basis. Accordingly, taking Google’s submission on record, CCI refrained from issuing any cease order and only directed Google to desist from such a practice in future.