Startup Sues Google Over Ad Blockages, Wins Temporary Relief.
27 March 2024
Arbitration Law >> Business & Commercial Law
A startup called Startupwala Pvt. Ltd. is suing Google India Pvt. Ltd. over a dispute concerning disapproved advertisements. The lawsuit alleges that Google unfairly blocked the startup's ads and seeks to prevent future disapprovals.
Startupwala's Claims:
Startupwala argues that Google's advertising platform disapproved their ads without proper justification. They claim some ads were initially approved but then later blocked, and that Google hasn't provided clear explanations for the disapprovals.
The lawsuit also challenges a clause in Google's advertising terms that requires arbitration in California, USA. Startupwala argues this clause is unfair because it makes it difficult for them to pursue legal action in India.
Court Grants Temporary Relief:
While Google has yet to respond to the lawsuit, the court has issued a temporary order in Startupwala's favor. This order prevents Google from blocking ads that are currently running and labeled as "Eligible (limited)" until the next hearing.
The court is likely to consider the validity of the arbitration clause and the fairness of Google's ad disapproval process at the next hearing.
What's Next?
Google has two weeks to file a formal response to the lawsuit. Startupwala then has the opportunity to respond to Google's arguments before the next court date, scheduled for April 22nd, 2024.
Arbitration and Conciliation Act, 1996