Google appeals antitrust ruling over ads platform, citing consumer harm

Google has appealed a recent antitrust ruling concerning digital advertising business, arguing that the decision would ultimately harm consumers, publishers and advertisers rather than improve competition.

The Alphabet's owned platform has challenged an Indian court ruling that it infringed on a company's trademark rights by allowing rivals to use its name as an advertising keyword, arguing the decision will hurt consumers.

The Delhi High Court in May ruled strictly against Google, that the tech giant was liable for trademark infringement by allowing competitors to exploit an established brand's name. Google was ordered to pay approximately $31,600 in damages and litigation costs.

Justice Mini Pushkarna sharply noted in the decision that "Google has attempted to sell something that it simply does not own.

As reported by Reuters, the May decision could reshape the online ads market in a country where Google last year earned $4.1 billion in gross advertising revenue but where it is also facing a raft of antitrust cases and court battles.

To ensure their ads are promoted by Google and target the right customers, companies bid on keywords that online consumers type into the search engine.

Indian bathroom fittings maker Hindware, however, accused its rivals of purchasing keywords related to its brand on the Google ads platform, so that their websites appear at the top of searches when consumers typed in "Hindware".

The Delhi High Court ruled against Google in the case, ordering it to pay damages of $31,600 and other litigation costs.

In its 4,761-page challenge, which is not public but was reviewed by Reuters, Google said the decision makes India the "sole outlier" among global jurisdictions "with serious consequences for the digital advertising industry, online consumer choice, and competitive markets."

Google’s Defense: The "Consumer Harm" Argument

In its extensive appeal, Google vehemently rejects the position that it is facilitating trademark infringement. Instead, it claims that restricting keyword bidding will trigger a negative domino effect across competitive markets.

As per the Financial Express, Google argues that preventing rivals from bidding on brand names effectively grants trademark owners an absolute "monopoly over advertising space."

Google notes that digital consumers frequently search for specific brands not just to buy from them, but to identify, compare, and assess alternatives. Restricting this tool directly limits online consumer choice.

However, tech industry experts and local businesses are closely monitoring the case.