The tech giant is arguing that the decision will harm consumers and publishers.
Google owner Alphabet has appealed a recent antitrust ruling in India relating to digital advertising and the use of trademarks in keywords.
The Delhi High Court ruled that Google infringed on the trademark rights of a bathroom fittings company when it allowed rivals to use its name in advertising keywords, and was ordered to pay $31,600.
This was a landmark decision, as it could have knock-on effects for brands across the globe, as it gives a layer of brand protection to companies – with smaller brands no longer able to piggy back on larger brand’s success through keyword stuffing tactics.
The case is set to change the way that advertisers in India, one of Google’s largest markets, operate. The ruling makes India the sole outlier in the global landscape, and it has wide-reaching implications for advertisers, publishers, and audiences.
However, Google has launched an appeal which claims that the decision would end up hurting consumers, publishers, and advertisers – instead of improving competition as intended.
Google, of course, rejects the idea that it is facilitating trademark infringement through its platform, and claims instead that restricting keyword bidding is likely to trigger a negative domino effect within its competitive markets.
By preventing rivals from using brand names, this ruling has inadvertently given large trademark owners an absolute “monopoly over advertising space,” Google argues, and consumers often search using brand names not for the purpose of brand loyalty, but often to find, compare, and assess alternatives.
Therefore limiting the practice of keyword bidding reduces that consumer choice to just the trademark brand.
Advertisers have been using keyword stuffing techniques for years to help reach their intended target audiences – so the ruling and its appeal could be seismic for the search and advertising landscape.
