The Delhi High Court has initiated an examination into whether Google’s advertising program terms unfairly restrict advertisers from pursuing legal remedies or selecting arbitration within India.
Justice Pratibha M. Singh presided over a case brought by Startupwala Private Limited against Google India Private Limited, challenging the circumstances under which their digital advertisements were disapproved or labeled as ‘Limited’.
Startupwala invoked Section 9 of the Arbitration and Conciliation Act, 1996, in its legal action, seeking the reinstatement of all digital advertisements disapproved or marked as ‘Limited’ by Google India in December 2023 and January 2024. Additionally, Startupwala aims to prevent Google from disapproving any remaining ads under the same classification.
The dispute stems from the rejection of Startupwala’s advertisements based on Google’s ‘Government Documents and Official Services’ policy. Startupwala contests Clause 13 of the Advertisement Terms, which mandates arbitration in Santa Clara County, California, USA, arguing that it effectively bars them from pursuing legal remedies in India.
Justice Singh’s notice to Google requests a comprehensive assessment of whether such a clause genuinely impedes Indian entities like Startupwala from exercising their legal rights or mandates that arbitration occur within India.
Google has been instructed to respond within two weeks. During this period, it is mandated that advertisements currently not blocked and labeled ‘Eligible (limited)’ should not be altered or removed. This directive includes the stipulation that the content of these advertisements remains unchanged until the next hearing.
The court emphasized the potential irreparable harm to the petitioner and its business in the absence of a response from the respondent. Therefore, it directed that advertisements currently labeled as ‘Eligible (limited)’ should not be blocked or taken down until the next hearing.
