CCI Launches Investigation into Google's AdTech Practices Following ADIF Complaint

The Competition Commission of India (CCI) has initiated a comprehensive investigation into Google's activities in the online display advertising sector. This action follows a complaint from the Alliance of Digital India Foundation (ADIF). The CCI has decided to consolidate this complaint with ongoing investigations into similar issues, instructing the Director General (DG) to conduct a unified probe into Google's practices within the AdTech ecosystem.

The investigation will scrutinise Google's alleged anti-competitive behaviour in online display advertising and AdTech intermediation services. ADIF's complaint accuses Google of favouring its own services within the AdTech ecosystem. This includes tying and bundling its publisher ad server DFP with its ad exchange AdX, and linking access to YouTube ad inventory with its demand-side platform DV360.

ADIF's Allegations Against Google

ADIF, representing startups and digital companies, claims that Google's practices harm publishers and advertisers while blocking market access for competing AdTech service providers. The CCI believes ADIF's involvement could provide valuable insights into the investigation. There is no legal obstacle to merging this matter with ongoing probes.

The CCI is initially satisfied that Google's actions require examination under Section 4 of the Competition Act, which addresses abuse of dominant position. It has ordered the matter to be combined with four existing cases, requesting a consolidated investigation report.

Google's Response and Ongoing Investigations

In response, 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. The CCI will evaluate these claims during the investigation.

Separately, the CCI dismissed another complaint by ADIF against Google, stating that the issues raised had already been examined in previous cases. The regulator was not persuaded by ADIF's reasons for distinguishing its allegations from those previously addressed.

Previous Complaints and Decisions

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 CCI noted that these issues were already examined and resolved in prior decisions.

The competition watchdog concluded that all instances of alleged unfair conditions imposed by Google as part of its Google Ads Policies have been substantively reviewed and settled in past rulings. Consequently, the current matter is directed to be closed under section 262A of the Act.

With inputs from PTI