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Google Faces $5 Billion Antitrust Penalty Fine in India

Mar 11, 2014 08:51 PM EDT | By Peter R

If found violating Indian fair trade norms, Google may be fined a hefty $5 billion, the Times of India reported.

According to the report, complaints regarding violations in India were filed with Competition Commission of India (CCI) by Matrimony.com. Techtree detailed the nature of complaints saying that Google was accused of selling keywords to Matrimony's rivals Shaadi.com, Jeevansaathi.com and others, misusing its dominant market position. It added that CCI has been investigating Google's misuse of its dominant position for over two years. In addition, Consumer Unity and Trust Society (CUTS) had also filed a complaint in 2011.

The Times of India reported that under law CCI can impose a penalty of 10% of a company's three-year revenue; in Google's case, that's close to $50 billion. If Google is found guilty, the penalty would amount to $5 billion.

A Google spokesperson who was contacted by Times of India said, "We are extending full co-operation to the Competition Commission of India in their investigation."

ZDnet reported that Indian laws do not allow settlement or withdrawal once a complaint is filed with the CCI. Google had earlier settled anti-trust cases in the US and European Union.

In addition to penalties, Indian law also allows CCI to order structural remedies that would essentially see an enterprise broken into smaller entities. It can also direct an organization to correct its behaviour in the market.  

While Times of India could not contact CCI's investigative arm the Director General for comments, it reported that the US Federal Trade Commission (FTC) had concluded after a two-year review that Google's services were good for competition.

The spokesperson was quoted by the Times as saying, "We're pleased that the conclusion of the Federal Trade Commission's two year review was that Google's services are good for users and good for competition." 

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