Indian Watchdog Could Hit Google With A $5 Billion Fine

Google could be fined as much as $5 billion (£2.99bn) if an investigation by the Competition Commission of India (CCI) finds that it abused its dominant position in the online search market to harm its rivals.

The US company has pledged full cooperation with the investigation.

Google recently announced that it will be making changes to the way its online search results are displayed, after settling a long-running antitrust case in Europe.

The company was recently found not guilty of anticompetitive conduct by the Federal Trade Commission (FTC) in the US.

Better safe than sorry

According to the Times of India, the investigation was launched in 2011, after a non-profit advocacy group CUTS International filed a complaint against Google, asking the CCI to look into the same areas of its business that were scrutinised by the US and European authorities.

India is a rapidly developing market with at least 100 million Internet users, and CUTS launched its campaign to ensure long-term sustainability rather than expose any particular wrongdoing on the part of Google.

The CCI has the power to fine companies up to 10 percent of their three-year annual average turnover, which in Google‘s case stood at $49.3 billion. It can also impose changes to the company’s conduct, or even break up a monopoly into several smaller commercial entities.

“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,” Google said in a statement. “We are extending full co-operation to the Competition Commission of India in their investigation.”

As part of the settlement with the European Commission in the EU, Google will have to make a number of changes to way its search engine operates, giving more visibility to links that lead to specialised search services run by competitors, such as those for shopping or restaurants.

Unlike in the US and EU, the legal framework of the CCI does not permit settlements, which means Google will not be able to avoid a fine if found guilty of misconduct.

Sources have told The Times of India that the Director General of the CCI has already collected feedback from third parties, and is likely to announce a decision soon.

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