More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance

More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance

SUMMARY

The News Broadcasters and Digital Association said that its members are forced to provide their news content to Google to rank higher on Google search pages

The CCI ordered to club the case with two other investigations into Google over similar claims and directed the DG to submit a consolidated investigation report in the matter

Earlier, the DNPA had filed a complaint with the CCI in January and then INS also approached the competition watchdog over similar claims in March

In mounting troubles for Google, the Competition Commission of India (CCI) on Friday (October 7) ordered another probe into the tech giant over alleged abuse of dominance in the news aggregator space.

The order came in response to a complaint filed by New Delhi-based News Broadcasters and Digital Association (NBDA) against Alphabet, Google LLC, Google India, Google Ireland and Google Asia Pacific.

The CCI said that the probe will be clubbed with two other investigations into Google over similar claims. The competition watchdog has directed the Director General (DG) to submit a consolidated investigation report in the matter. 

Citing Google’s unfair revenue sharing agreement with digital news portals, the NBDA argued that its members are forced to provide their news content to Google to rank higher on Google search pages. 

The broadcaster body alleged that Google freerides on the content of its members without giving them adequate compensation. The petition also claimed that Google exploited its near-total monopoly in the search engine space to build services such as Google News, Google Discover and Google Accelerated Mobile Pages.

The NBDA said that while the tech giant incorporates news content from its members, the revenue distributed by Google to news publishers does not compensate for the real contribution made by these portals.

The NBDA claims to have 25 broadcasters as its members including media conglomerates such as Network18, NDTV, TV Today Network, among others. 

Google Facing Multiple Probes 

This is not the first time that Google is in the dock for its alleged abuse of dominance in the news aggregation space. 

In January this year, the Digital News Publishers Association (DNPA) approached the CCI over Google’s monopolistic position in the search market as well as in the advertising intermediation. In its petition, the DNPA alleged that Google unilaterally decides the terms and the amount to be paid to the publishers for the content created by them. 

Subsequently, the competition watchdog launched a probe into Google over the matter. 

Close on the heels of that, the Indian Newspapers Society (INS) also filed a similar plea before the CCI in March. The INS’ complaint was then clubbed together with the previous plea filed by the DNPA. 

With the latest order, the NBDA has become the third party to the probe pertaining to allegations into the search engine giant. 

Such was the clamour around the issue that even Minister of State (MoS) for Electronics and IT Rajeev Chandrasekhar recently said that the government is looking at making big tech players pay a share of their revenues to Indian newspapers and news portals for using the latter’s original content.

The increasing smartphone and internet penetration in the country has seen big tech giants such as Google enter a myriad of avenues including news aggregation space. While exact numbers are not available, a big chunk of internet users search and read news online. While the search engine uses offerings such as Google News to attract eyeballs and generate ad revenue, it largely keeps original content producers out of the loop in terms of targeted ad data and revenue generation.

Google is under CCI’s scrutiny in a slew of other cases including dominance in the operating system market, in-app billing policy on the Play Store, and its popular payments service Google Pay. 

It was reported last month that the CCI could soon announce its verdict in the case involving Google’s contentious Play Store policy which has seen many developers and civil society organisations rally behind the cause.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance-Inc42 Media
More Trouble For Google In India: CCI Orders Probe Over News Aggregation Dominance-Inc42 Media
You’re in Good company