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Google questions CCI jurisdiction in AdWords account shutting case

Update: From the Delhi High Court order, it appears that there was no stay given on the Rs 1 crore fine, and from what we can understand from Google’s clarification to us, none was appealed. Looks like the PTI story was wrong.

Yesterday: Google has only appealed in the Delhi High Court, against an order from the Competition Commission of India (CCI) to investigate a complaint filed by Vishal Gupta of Audney.com, and asked for confidentiality of its responses to the CCI in case of a separate ongoing investigation, the company has clarified to MediaNama. The company has questioned the territorial jurisdiction of the CCI to investigate a matter of the termination of Gupta’s AdWords account, since, it contends, the case relates to a Delaware incorporated company (Audney, Inc), and ads were displayed only on Google.com and Google.ca.

The clarification follows a PTI report which stated that Google had appealed the fine of Rs 1 crore levied on the company by the CCI and that the Delhi High Court stayed the order. We’ll have to wait for the High Court order to ascertain whether this is the case or not. In March this year, the Competition Commission of India (CCI) had fined Google Rs 1 crore for failing to comply with directives given by the Director General seeking information and documents. 

Do read:  What the Competition Commission wants to know about Google in India

The DG was investigating a complaint filed by Bharatmatrimony in 2009 and Consumer Unity & Trust Society (CUTS) in 2012 against Google for alleged abuse of marketshare in online search and search advertising. The Audney, Inc issue appears to be a separate case.

google-india-earnings-2014

Google India Pvt Ltd (Google India) reported revenues of Rs 3,050.69 crore for the 12 month period ended March 31, 2014 (FY14), up a substantial 47% from 2,076.79 crore ($345.38 million) from the previous financial year (FY13), according to a recent filing with India’s Registrar of Companies. More on that here.

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