Competition commission digs into adwords
Monday, May 7, 2012
Competition commission has ordered a probe into google's business practices in relation to its advertising service adwords. according to sources, the probe was ordered after the Competition Commission of India (CCI) found “prima facie evidence” that Google has abused its dominant market position by being discriminatory in allotting keywords to matrimonial site Bharatmatrimony.com.
Consim India which runs properties likes bharatmatrimony.com and host of other regional matrimonial websites filed a case against google alleging that it has used its dominance in the search market to indulge in discriminatory and retaliatory practices.
Its was the same story that has been played in the western markets several times, it revolves around using trade marks or product names of competitors to promote one's own service. For example when you type maruti alto you will be shown ads for hyundai eon, because the hyundai has chosen to target the keyword 'maruti alto' but the case of consim could be a bit different as its domain name almost 250 of them are all generic keywords like if you search for tamil matrimony you will see ads of shaadi.com or simplymarry.com in google's sponsored result. What consim claims is that the keyword "tamil matrimony" is its trademark since its owns tamilmatrimony.com. Likewise it owns several other domains like brahminmatrimony.com or agarwalmatrimony.com.
What i personally think is that there is no strength to this case as the keywords are generic, there is no other way for a tamil guy to search for tamil matrimonial site without using the keyword tamil matrimony. Its fine if the case is for targeting keyword bharatmatrimony which is not essentially a generic keywords and there are alternative keywords available.
The current probe may or may not be related to the above case, it seems to be about discriminatory pricing of keywords. But as far as i know, google uses a totally automated keyword pricing mechanism that uses factors like demand for a keyword, the quantity of traffic required and ctr of the ad in question to come up with a price.

