CCI orders probe against Google for alleged misuse of domineering position – World Affairs SRS

CCI orders probe against Google for alleged misuse of domineering position

– World Affairs SRS

Fair trade regulator CCI on Friday ordered an investigation against Google for alleged abuse of its dominant position.

“In a well-functioning democracy, the vital role played by the news media cannot be underestimated, and the need to ensure that digital concierge firms are competitive to determine fair distribution of revenue among all stakeholders. Let’s not abuse our dominant position to harm the process,” the CCI said.

It said that the Commission is of the prima facie view that Google has violated the provisions of Section 4 of the Competition Act, 2002 which deals with abuse of dominant position.

The order comes on a complaint filed by Digital News Publishers Association, a private company that promotes and protects the interests of digital news publishers.

It had filed complaints against Alphabet Inc., Google LLC, Google India Pvt Ltd and Google Ireland Ltd.

The association stated that most of the traffic to news websites comes from online search engines and claimed Google to be the most prominent search engine.

It said that more than 50 percent of the total traffic to news websites is routed through Google and being the major player, Google, through its algorithms, determines which news websites get discovered through search.

In addition, Google is a major stakeholder in the digital advertising sector and unilaterally decides the amount to be paid to publishers for the content they create, as well as the terms on which the above amount is to be paid.

It further said that the members of the association have to suffer loss of advertising revenue and inability to deal in fair share in the value chain of news dissemination inspite of creating and working with credible news.

It said online digital advertising intermediation services lack transparency, making it difficult for publishers to audit and verify the advertising revenue generated on their websites.

“No doubt, Google, being the gateway, generates substantial traffic for news publishers, but at the same time, the bargaining power imbalance and denial of a fair share in advertising revenue, as alleged by the informant, deserves a detailed inquiry,” the commission said.

According to the regulator, there is a need to examine whether Google imposes any discriminatory bets or pricing on various news publishers.

Google has unilaterally decided that publishers of news will not be paid for the snippets they use in search engine results.

There is a need to examine whether the use of news snippets by Google is a result of a bargaining power imbalance between Google on the one hand and news publishers on the other, and whether it affects the referral traffic of news publisher websites, and thus, their monetization. Capabilities.

The CCI noted that in France and Australia, Google has been asked to enter into goodwill negotiations with news publishers for paid licenses for content over a bargaining power imbalance between the two and to enforce unfair terms as a result.

The regulator has directed its investigation wing, the Director General (DG), to conduct an inquiry into the matter and submit the investigation report within 60 days.

It added that “nothing contained in this order shall amount to an expression of final opinion on the merits of the case, and the DG shall conduct the investigation without being in any way affected by the observations made herein”.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)

                                                    </div><div style="background: #fee8dd; padding: 12px; border: dashed 1px black; margin-bottom: 20px;">

Dear reader,

Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only reinforced our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and sharp comments on relevant relevant issues.
However, we have a request.

As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.

support quality journalism and Subscribe to Business Standard,

digital editor



this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by Rojgar samachar team members.

Leave a Reply