Founders seize on Indian court ruling to revive criticism of Google’s ad business
An Indian court found Google liable for trademark infringement over keyword ads, prompting founders to renew criticism of how the system diverts brand traffic.
Intelligence analysis by GPT-5.4 Mini
A Delhi High Court ruling against Google’s keyword advertising practices has drawn fresh attention from Indian founders who say the system lets rivals bid on brand names and steal customers. Google says its policy bars trademarked terms in ad text, while legal experts say the broader impact may be limited.
A court in India said Google went too far with one part of its ad system. The case was about a company called Hindware, which said other companies were using its name in search ads to pull away customers.
Think of it like a store putting a rival shop’s name on a sign near the front door, so shoppers get tricked into walking into the wrong place first. The court said Google was not just standing by and watching.
Some business founders liked the ruling because they say this has been a problem for years. Google says its rules do not let competitors use trademarked names in the ad text, and lawyers say the ruling may matter, but not change everything.
Analysis
What the court said
The Delhi High Court ruled on May 22 in a trademark dispute involving bathroom fittings maker Hindware. The judge found Google liable for trademark infringement over its keyword advertising practices and awarded Hindware ₹3 million, described in the article as nominal damages.
Justice Mini Pushkarna rejected Google’s claim that it was only a passive intermediary on its search platform. The court said Google, through AdWords, allowed rivals to use “Hindware” as a keyword to target people searching for that brand.
Why founders reacted
The ruling got wider attention after Indian founders, including Zerodha’s Nithin Kamath and Zoho’s Sridhar Vembu, said competitors have long used Google’s ad tools to divert traffic from established brands. Kamath said Zerodha had dealt with the issue for more than a decade and argued that searches for “Zerodha” should lead to Zerodha, not competitor ads.
Google’s response
Google said its trademark policy does not allow competitor advertisers to use trademarked terms in ad text and said the policy is applied globally. A spokesperson said the company looks forward to aligning its operations with local legal frameworks while keeping standards that protect users’ long-term interests.
How big the ruling is
The article quotes legal expert Aprajita Rana of AZB & Partners saying platforms may need to review whether automated tools encourage or offer trademarked terms to advertisers. But she also said the decision does not appear to have a far-reaching impact on online-platform liability in India, since courts already recognize that companies can lose legal protections when they play an active role in unlawful activity.
Key points
- The Delhi High Court found Google liable for trademark infringement in a dispute involving Hindware keyword ads.
- The court awarded Hindware ₹3 million in nominal damages and rejected Google’s passive-intermediary argument.
- Founders including Nithin Kamath and Sridhar Vembu said competitors have long used Google ads to divert brand traffic.
- Google said its global trademark policy bars competitor use of trademarked terms in ad text and it will align with local law.
- A legal expert said the ruling may prompt platform process reviews, but its broader liability impact in India may be limited.
