Top Story

e4m_logo.png

Home >> Digital >> Article

CCI order will have no impact on Google India’s robust growth: Experts

13-February-2018
Font Size   16
CCI order will have no impact on Google India’s robust growth: Experts

The Competition Council of India’s recent penalty on Google India for ‘search bias’ and abusing its ‘dominant position’ has become a point of debate among brand and marketing experts.

The penalty which amounts to 5 per cent of the average revenue generated by Google India comes to around Rs 137 crore. The tech giant has been directed to deposit it within two months. "Google was found to be indulging in practices of search bias and by doing so, it causes harm to its competitors as well as to users," the order said. The ruling follows complaints filed by Matrimony.com and Consumer Unity & Trust Society (CUTS) in 2012 against Google LLC, Google India Pvt Ltd and Google Ireland Ltd. Media agency experts believe that the CCI order will not have any significant impact on the tech giant given that it has shut down the processes which the commission found objectionable.

According to Tanya Chaudhary, Manager Brand Communications, Madison, “With this news, media professionals around the country will be more vary before using Google in the future. This is definitely a breach of trust and affinity that we enjoy when it comes to a company as big as Google. However, the fine levied by the Commission for infringing antitrust will not affect the company and its business per se as the company’s operation in India is enormous.”

"We have always focused on innovating to support the evolving needs of our users. 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," said Google in its official statement.

While Google remains unaffected by this development, there are reports that Matrimony.com, which had filed the original complaint against Google, could appeal against the CCI’s ruling as it believes that it will not address the issue of “abuse” of web traffic in a proper manner.

Though all the major brands have refrained to comment on the order, there are some players who claim that the CCI order has resulted in some kind of trust deficit. “This development has resulted in certain trust deficit with Google. Moving forward we would evaluate other options to reduce dependency on search engine”, said Sushil Matey, Director Marketing, Livpure.

It is important to mention that the CCI order has favored the tech giant on nine out of almost twelve counts. However the order has once again brought to focus the need for a more robust regulatory framework which a data economy merits--a debate which is likely to rage on.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Meanwhile Radio City and Radio Mirchi ruled Bangalore and Kolkata respectively

Pankaj Belwariar, who recently resigned from the post of Vice President Marketing at Sakal Media Group, has now joined Rajasthan Patrika as the Head of Marketing in North and East region.

A look at Vivo’s ad campaign with their all-new brand ambassador Aamir Khan, which has fetched them a whopping 21 million views on YouTube