What happened

Indian B2B giant IndiaMART filed a lawsuit against OpenAI in the Calcutta High Court. The company alleged that ChatGPT "specifically and consciously" excluded its website and listings from AI-generated search results.

IndiaMART argued that while users increasingly use ChatGPT to discover products and suppliers, the AI engine consistently omits IndiaMART, which is one of India's largest marketplaces with a presence in 40 countries, while displaying results for rival platforms like DHgate, Pinduoduo, Shopee, and Taobao. 

On December 24, 2025, Justice Ravi Krishan Kapur observed that a strong prima facie case of "selective discrimination" had been made, noting that the exclusion appeared to be "without any logic." 

The court acknowledged that such exclusion causes direct commercial injury, loss of goodwill, and trade libel through implied disparagement.

Why it happened

The incident highlights critical issues regarding algorithmic transparency and the reliance on external "blacklists."

• Arbitrary reliance on third-party reports: IndiaMART alleged that OpenAI justified the exclusion based on reports from the Office of the United States Trade Representative (USTR), which had previously flagged IndiaMART regarding counterfeit concerns.

• Inconsistent accountability: IndiaMART argued that OpenAI's application of these reports was arbitrary, as other international entities mentioned in the same USTR reports (such as Taobao) were not excluded from ChatGPT.

• Lack of due process: The marketplace claimed it was never given notice or an opportunity to defend itself against the USTR findings before being "de-indexed" by the AI, highlighting a lack of corporate transparency in how OpenAI manages its "allow/deny" lists for search-enabled responses.