Google India Has Direct Relationship With Google LLC, Ambala District Commission Allows Complaint Against Google India For Services Provided Directly By Google LLC

Brief Facts:

The Complainant reached the data storage capacity limit and needed additional storage. Consequently, the Complainant encountered a link purportedly from the Google team offering additional storage for purchase. Following the instructions provided by Google One, the Complainant attempted to purchase additional storage multiple times through the provided link. However, despite the debit of Rs. 3900/- from the Complainant's bank account, the purchased storage was not provided to the Complainant. Subsequently, the Complainant requested a refund from Google. Google made a partial refund of Rs. 1300/- to the Complainant, while Rs. 2600/- remained unrecovered. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Ambala, Haryana (“District Commission”) and filed a consumer complaint against Google India Pvt Ltd (“Google India”).

Upon receiving notice, Google India raised preliminary objections, contending that it is a distinct legal entity incorporated under the Companies Act, 1956, with its registered office in Bangalore, Karnataka. It contended that it primarily engages in selling advertising space, marketing, and software development solutions in India, which is distinct from the services offered by Google LLC. It further argued that Google India was not the provider of Google One services, which were offered by Google LLC, based in the United States.

Observations by the District Commission:

The District Commission held that the Complainant provided substantial evidence during the proceedings to establish a direct relationship between Google India with Google Inc. and Google One/LLC. The District Commission held that documents, such as Form No. MGT-7, Memorandum of Association, and List of shareholders, and debenture holders, indicated the interconnection between Google India and Google LLC. These documents highlighted the subsidiary and associate status of Google India under Google International LLC, as well as the operational presence of both entities from a shared corporate office in Gurgaon. Additionally, the District Commission noted that payments made from Delhi by individuals associated with Google India further emphasized its connection.

Therefore, the District Commission held that Google India holds a direct relationship with Google LLC. The District Commission held Google India liable for deficiency in services for failure to provide the services to the Complainant. Consequently, it directed Google India to refund the amount of Rs. 2600/- to the Complainant. Google India was also directed to pay a lump sum compensation of Rs. 2000/- for the mental anguish and physical inconvenience endured by the Complainant and for the litigation costs.