India’s leading B2B marketplace IndiaMART has approached the Calcutta High Court with a legal complaint against artificial intelligence company OpenAI, alleging that its AI chatbot ChatGPT has unfairly excluded IndiaMART from certain AI-generated responses.
According to IndiaMART, this alleged exclusion has resulted in reduced digital visibility and possible reputational harm at a time when AI platforms are becoming an important discovery channel for businesses, buyers and suppliers. The company claims that while competitors and other marketplaces continue to appear in AI-generated answers, IndiaMART’s name and listings are missing in similar contexts, raising concerns of selective treatment.
Court Observations During Initial Hearing
During the initial hearing, the Calcutta High Court observed that IndiaMART appeared to have made out a prima facie case. The court noted that the alleged exclusion seemed to lack a clear or logical explanation and could potentially impact the company’s goodwill and business interests.
However, the court did not grant any immediate interim relief at this stage. It reasoned that issuing directions to modify or influence how ChatGPT generates responses without hearing OpenAI’s side would amount to granting final relief prematurely. The court has scheduled further hearings to allow all parties to present their arguments in detail.
IndiaMART’s Core Allegations Explained
In its petition, IndiaMART has alleged that the continued omission from AI responses amounts to unfair competition and unlawful interference with business. The company has argued that AI-generated answers are increasingly treated by users as authoritative, which makes exclusion more damaging than a simple drop in search engine rankings.
IndiaMART has also raised concerns around what it describes as “trade libel” and “injurious falsehood”, claiming that omission could mislead users into assuming the company is not relevant or credible within the B2B ecosystem. The petition suggests that this could distort market competition, especially for small and medium enterprises that rely heavily on IndiaMART for business leads.
Reference to International Trade Reports Questioned
Another key issue raised by IndiaMART relates to references made to international trade reports concerning counterfeiting and piracy. The company has stated that it was neither given prior notice nor an opportunity to respond before such reports were allegedly relied upon to justify exclusion from AI responses.
IndiaMART has maintained that it follows established compliance processes and works closely with authorities and stakeholders. It has argued that any reliance on external reports without due process is arbitrary and legally unsustainable.
Why This Case Matters for India’s Digital Economy
This legal move is being widely seen as a landmark moment in India’s evolving debate around AI accountability. As generative AI tools increasingly shape information access, courts are now being asked to examine whether algorithmic decisions can be challenged under existing legal frameworks.
Unlike traditional platforms where content appears as ranked links, AI chatbots provide direct, summarised answers. Experts say this makes transparency and fairness even more critical, as exclusion can quietly influence user perception and business outcomes.
What Lies Ahead
The next hearing is expected to focus on OpenAI’s response and the technical and policy explanations behind how ChatGPT sources and presents information. The outcome could have wider implications for how AI platforms operate in India and how businesses seek accountability for automated decision-making.
For now, the case highlights a growing reality — as AI becomes deeply integrated into everyday digital interactions, questions around fairness, transparency and business impact are likely to reach Indian courts more frequently.