Fair Trade regulator Competition Council of India (CCI) has decided to initiate a probe against tech Giant Google. This came after a complaint filed by The Digital Publishers Association claiming that Google was abusing its position as a dominant player in news aggregation by imposing unfair conditions on news publishers.
The Digital Publishers Association is a private body that secures the interests of digital news publishers. In its petition, it had accused Google of denying fair share in online advertising revenue while hiding necessary information to reach a fair settlement. While speaking on behalf of its members, the organisation said that news portals are determined to invest a sizeable amount of effort and revenue in providing fair and credible news.
In response to the petition, The CCI has asked its Director General of Investigation to launch a probe on the basis of the case filed by the Digital Publishers Association and to submit a report in 60 days. In a 21-page initial order, The CCI said, “In a well-functioning democracy, the critical role played by news media can’t be undermined.” It asserted that Google appears acting as a gateway between various news publishers and readers. The commission added that in its prima facie view, Google has violated provisions of Section 4 of the Competition Act, 2002 which accounts for abuse of dominant position.
“The allegations of the informant, when seen in this vertically integrated ecosystem operated by Google, makes it prima facie appear that news publishers have no choice but to accept the terms and conditions imposed by Google” added CCI on Friday. According to the body, while the tech giant channels 50% of total traffic on digital news portals, through its algorithms it determines which news website gets searched prominently through Google search.
Earlier in September 2021, Google India was found guilty of stifling competition by mandating the pre-installation of its product apps in mobile phones by the Competition Commission of India.
