As reported earlier of a probable action, the Competition Commission of India (CCI) announced that it is going to launch inquiry into Google’s business practices having received a formal complaint from Consumer Unity and Trust Society (CUTS) International regarding some potential anti-competitive practices being adopted by Google in India. No further details were released in the statement though. Google was already on CCI’s radar because of previous complaints from BharatMatrimony.com regarding the AdWords program.
In an August 2011 letter [PDF], CUTS had written to the CCI that “Google can potentially engage in anti-competitive activities to the possible detriment of these markets in India and that therefore such activities in this regard need to be thoroughly investigated by the CCI.”
According to the Wall Street Journal, such an investigation was to take place sooner or later. ZDNet notes that the CCI may levy fines of up to 10 per cent of a company revenue or up to 300 per cent of its net profit if found guilty of anti-competitive practices.
Google spokesperson Paroma Roy Chowdhury has said that the company was cooperating with the CCI and that they are confident that their products are “compliant with competition law in India”.