Google appeals India court verdict over ads platform, cites harm to consumers

Google has challenged an Indian court ruling that found it had infringed a company's trademark rights by allowing rival firms to use its brand name as an advertising keyword, arguing that the decision would hurt its customers.

The outcome of the case could reshape India's online advertising market. Companies seeking to improve the visibility of their online advertisements and reach the right customers often bid on keywords that consumers type into internet search engines.

The case stems from a complaint by Indian bathroom fittings maker Hindware, which accused its rivals of purchasing keywords related to its brand through Google's advertising platform. As a result, rival websites appeared at the top of search results whenever consumers searched for "Hindware."

The Delhi High Court ruled against Google, ordering it to pay damages of about $31,600, along with litigation costs. In its appeal, reviewed by Reuters, Google argued that the ruling makes India a "sole outlier" among global jurisdictions, with serious consequences for the digital advertising industry, online consumer choice, and competitive markets.

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In a July 7 filing, Google said the ruling would effectively grant trademark owners a "monopoly over advertising space to the detriment of consumers." The company confirmed to Reuters that it is appealing the order, saying the judgment "diverges from established legal precedents in India." It added that its advertising policies reflect standard industry practices that enable fair competition.

Google's appeal is expected to be heard in the coming days.

If upheld, Indian lawyers and technology experts say the original ruling could have far-reaching implications for the way the online advertising market functions.

Indian matchmaking platform Shaadi.com, for instance, said the ruling could reshape the economics of online advertising for millions of businesses that have long been affected by competitors bidding on their brand names while Google collected a fee.

In the ruling delivered in May, Justice Mini Pushkarna observed that Google could not evade responsibility by claiming it merely provided a tool that resulted in trademark infringement.

"Google has attempted to sell something that it simply does not own," Pushkarna wrote.

In its appeal, Google disputes the finding that it infringed trademarks, arguing that "a keyword is merely used as an internal and backend trigger to display an ad" and that it is simply "making advertising space available."

Google is also facing antitrust investigations in India, along with legal challenges over AI training practices and stricter content takedown regulations that came into effect for technology companies in February.

Legal scrutiny over AI-generated content

A German court has issued a preliminary ruling that could have far-reaching implications for AI-powered search engines and chatbots. The Munich Regional Court held Google liable for allegedly false statements generated by its AI Overviews feature, saying the company must prevent inaccurate or misleading AI-generated content from appearing in search results.

The case was brought by two publishers who claimed Google's AI summaries falsely linked them to scams and fraudulent business practices. Google argued it should not be held responsible because AI Overviews warn users that the information may contain errors and should be independently verified.