Indian Court Rules Against Google's Keyword Ad Practices
Original: Founders seize on Indian court ruling to revive criticism of Google’s ad business
Why This Matters
Challenges Google's ad business model in India, its largest market outside China
Delhi High Court ruled Google liable for trademark infringement in keyword advertising, awarding Hindware ₹3 million damages. Indian founders including Nithin Kamath and Sridhar Vembu backed the May 22 ruling, criticizing competitors using their brand names as keywords.
The Delhi High Court found Google liable for trademark infringement over its AdWords platform allowing competitors to use 'Hindware' as a keyword to target brand searches. Justice Mini Pushkarna rejected Google's argument that it was a passive intermediary, stating Google sold trademarks as keywords without authorization for commercial gains. The 163-page judgment awarded ₹3 million in damages. Indian entrepreneurs including Zerodha's Nithin Kamath publicly supported the ruling, saying competitors have long diverted traffic from established brands through Google's ad system. Kamath noted Zerodha searches often show competitor ads first. Google maintains its policy prohibits using trademarked terms in ad text globally.