CCI Launches Investigation into Google’s AdTech Dominance Following ADIF Complaint

The Competition Commission of India (CCI) has initiated a thorough investigation into Google's practices in the online display advertising sector. This action follows a complaint by the Alliance of Digital India Foundation (ADIF). The CCI's order, issued on Friday, aims to consolidate this complaint with ongoing probes into similar cases. The Director General (DG) has been tasked with conducting a comprehensive investigation into Google's actions within the AdTech ecosystem.

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The CCI's decision stems from ADIF's detailed allegations that Google engages in anti-competitive behaviour across its advertising technology stack. ADIF claims that Google favours its own services within the AdTech ecosystem. This includes tying and bundling its publisher ad server DFP with its ad exchange AdX and linking YouTube ad inventory access to its demand-side platform DV360.

Google's Alleged Anti-Competitive Practices

ADIF, representing startups, companies, and individuals, argues that Google's practices harm publishers and advertisers while limiting market access for competing AdTech providers. The CCI believes ADIF's involvement could offer valuable insights into the investigation. It sees no legal obstacles to merging this case with ongoing investigations.

The CCI has determined that Google's conduct warrants scrutiny under Section 4 of the Competition Act, which addresses abuse of dominant position. Consequently, it has ordered the matter to be combined with four existing cases, requiring a consolidated report after investigation.

Google's Response and CCI's Examination

Google has denied these allegations, asserting it operates in a competitive AdTech market in India alongside players like Xandr, Amazon Ads, and the Trade Desk. Google maintains that its products are interoperable and not tied together. However, the CCI plans to examine these claims during the investigation.

A Google spokesperson stated, "We are reviewing the CCI’s orders. We welcome the CCI’s decision to dismiss one part of the complaint. We remain confident that our ongoing work with the CCI will affirm that Google's advertising practices have consistently benefited advertisers, publishers, and users, and are fully compliant with competition law."

Dismissal of Separate Complaint

In another order, the CCI dismissed an ADIF complaint against Google, concluding that similar allegations had been addressed in previous cases. The regulator was not convinced by ADIF's reasons for distinguishing its claims from issues previously examined.

The CCI stated that the issues raised by ADIF were either identical or substantially similar to those already settled. As a result, it directed the closure of this matter under Section 262A of the Act.

ADIF had highlighted four main concerns: prohibition on third-party technical support ads, restrictions on Call Ads on desktops, lack of transparency in ad rankings, and allowing competitors to bid on trademarked keywords. The competition watchdog noted that these concerns had been previously examined and resolved in past decisions.

With inputs from PTI