Calcutta High Court Finds Prima Facie Case in IndiaMART's Discrimination Suit Against OpenAI

IndiaMART InterMesh has initiated legal proceedings against OpenAI at the Calcutta High Court, alleging discriminatory exclusion from ChatGPT's search results. The prominent business-to-business platform claims this exclusion has caused significant reputational and commercial damage while other e-commerce platforms continue to appear in AI-generated responses.

Court Proceedings and Judicial Observations

On December 24, Justice Ravi Krishan Kapur heard the matter and made several key observations regarding the case. The court found that IndiaMART had established a strong prima facie case against OpenAI, acknowledging that continued exclusion could result in commercial injury.

Court Findings:	Details
Prima Facie Case:	Strong case established by IndiaMART
Discrimination Type:	"Selectively discriminated and unjustifiably excluded without any logic"
Potential Impact:	Loss of goodwill, reputation, and business
Interim Relief:	Denied by the court

IndiaMART's Legal Claims

The company, which operates in over 40 countries with thousands of employees, has raised multiple legal grounds for its lawsuit. IndiaMART argues that OpenAI's actions constitute several forms of commercial harm and unfair business practices.

The legal claims include:

Trade libel through implied disparagement
Dilution of trademark rights
Injurious falsehood
Unfair competition practices

USTR Report Controversy

IndiaMART claims that OpenAI relied on reports from the US Trade Representative's office (USTR) to justify the exclusion. The company argues it was never given notice or an opportunity to respond to allegations in the USTR report, raising procedural fairness concerns.

A significant aspect of the case involves selective treatment allegations. Other entities named in the same USTR reports for counterfeiting and piracy, including DHgate and Pinduoduo, continue to appear in ChatGPT responses, highlighting potential inconsistencies in OpenAI's exclusion policies.

Court's Decision on Interim Relief

Despite finding merit in IndiaMART's arguments, Justice Kapur refused to grant interim relief. The court stated that such an order would effectively grant final relief without hearing the respondent's position. OpenAI remained unrepresented in the proceedings despite being served.

Next Steps

The court has directed IndiaMART's counsel to effect fresh service to OpenAI to ensure proper representation in future proceedings. The matter is scheduled for the next hearing on January 13, 2026, when both parties are expected to present their complete arguments before the court.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.65%	-0.93%	-3.96%	-11.17%	-1.30%	-28.64%

IndiaMART InterMesh , a leading B2B marketplace, has set its sights on accelerating growth in the latter half of fiscal year 2026, despite current challenges and increased investment in artificial intelligence (AI) technologies.

Growth Targets and Current Performance

IndiaMART is aiming for double-digit growth in standalone collections for the second half of FY26, a significant increase from its current growth rate. Here's a breakdown of the company's recent performance and future targets:

Metric	Current Performance	Future Target
Standalone Collections Growth	8-10%	Double-digit growth
Q2FY26 Standalone Collections	Rs 365.00 crore	-
Year-on-Year Growth	8%	-
ARPU Growth Guidance	-	6-8%

CEO Dinesh Agarwal attributes the current growth rate of 8-10% to slower net customer addition. However, the company remains optimistic about its Average Revenue Per User (ARPU) growth, projecting a 6-8% increase. This optimism is fueled by an improved platform experience, which has led to an increase in unique business inquiries and repeat customers.

AI Investments and Future Cost Reduction

IndiaMART is making significant strides in AI implementation to enhance its operations:

Automation Target: The company aims to automate three crore monthly calls between buyers, sellers, and the platform.
AI Applications:
- Analyzing call transcripts
- Improving product specifications through PDF analysis
Current Impact: AI investments are presently increasing costs due to experimentation with multiple models.
Future Outlook: CEO expects cost reduction benefits to materialize in 2-3 years.

Chinese B2B Competition and Partnerships

Addressing speculation about Chinese B2B competition, CEO Agarwal:

Welcomed potential partnerships
Denied rumors of joint ventures with Chinese players

Market Response

The market has responded positively to IndiaMART's growth plans and technological investments. The company's shares closed 3.76% higher at Rs 2,460.00 on the day of the announcement.

IndiaMART's strategic focus on AI implementation, coupled with its ambitious growth targets, signals the company's commitment to maintaining its competitive edge in the B2B marketplace sector. While the increased AI investments may impact short-term costs, the long-term benefits in operational efficiency and customer experience could potentially drive the company's growth in the coming years.