Google appeals Indian court's keyword bidding ruling
What's the story
Google has challenged an Indian court ruling that found it infringed trademark rights by allowing competitors to bid on a company's trademarked name as a keyword for advertising. The tech giant argues that the decision will harm consumers and disrupt online markets. The appeal, which was filed in July and reviewed by Reuters, is set to be heard in the coming days.
Market impact
Google's ad revenue from India
The May ruling could have a major impact on India's online advertising market. Last year, Google made $4.1 billion in ad revenue from the country. However, it is also dealing with multiple antitrust cases and court battles here. To promote their ads and reach potential customers, businesses bid on keywords that users enter into the search engine.
Trademark infringement
The case against Google
Indian bathroom fittings manufacturer Hindware has accused its competitors of buying keywords related to its brand on the Google ads platform. This was done so that their websites would appear at the top of searches when users typed in "Hindware." The Delhi High Court ruled against Google in this case, asking it to pay damages worth $31,600 (around ₹30 lakh) and other litigation costs.
Appeal details
Google's arguments in appeal
In its 4,761-page appeal, Google contends that the ruling makes India an outlier among global jurisdictions. The company argues it could have serious consequences for the digital advertising industry and competitive markets. Google also claims this decision could give trademark owners a "monopoly over advertising space to the detriment of consumers."
Policy defense
What Google said
Responding to Reuters's request for comment, Google confirmed it is appealing the order. The tech giant said the ruling "diverges from established legal precedents in India" and its ads policies reflect standard practices that enable competition. If upheld, the original ruling could have far-reaching implications for how online advertising works in India.
Appeal rejection
Google's defense on trademark infringement allegations
Google's appeal also rejects the allegation of trademark infringement. The company argues that "a keyword is merely used as an internal and backend trigger to display an ad" and is simply "making advertising space available." This defense could potentially change digital advertising practices in India, depending on the outcome of the appeal.