India to file $5 billion lawsuit against Google

Posted by: Jennifer Cefai (3 years, 6 months ago)

There seems to be a neverending stream of lawsuits hitting Google at the moment. Just as the tech giant managed to wrap up its antitrust lawsuit with the EU, India struck. The Competition Commission of India (CCI) has accused Google of abusing its market position in India, which holds the second-largest population in the world. This fllows a two year-long investigation, following a couple of complaints filed against the Mountain View, Calif.-based company in 2011. 

Although Google has faced - and settled - identical lawsuits in the U.S. and the EU, India's laws do not allow for the same treatment. Indian antitrust law does not allow companies to settle, so conceding to the regulators will not be enough to solve Google's problems. Furthermore, the Indian government are allowed to impose fines of up to 10% of a copany's global revenue, calculated over a three-year period - this means just about $50 billion from Google. Worst still, Google could be forced to divide itself into separate, smaller companies owing to legally imposed "structural remedies".

Google has extended its full co-operation to the Indian government, and is confident in its chances owing to its recent successes in the U.S. and the EU.

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