Google has challenged an Indian court ruling that found the company violated trademark rights by allowing advertisers to use competitors’ brand names as search advertising keywords, arguing the decision could harm consumers and competition.
The Delhi High Court ruled against Google in May, ordering the company to pay damages of $31,600 along with litigation costs. The case could have significant implications for India’s online advertising market, where Google generated an estimated $4.1 billion in gross advertising revenue last year.
In its appeal, reviewed by Reuters, Google argued that the ruling makes India the “sole outlier” among major jurisdictions and warned of “serious consequences for the digital advertising industry, online consumer choice, and competitive markets.”
Google said consumers often search for a brand to compare alternatives, adding that the ruling would effectively grant trademark owners “a monopoly over advertising space to the detriment of consumers.” Confirming the appeal, the company said the judgment “diverges from established legal precedents in India” and maintained that its advertising policies promote fair competition.
The appeal is expected to be heard by the Indian court in the coming days.