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

The Competition Commission of India (CCI) has initiated a comprehensive investigation into Google's practices in the online display advertising sector. This action follows a complaint from the Alliance of Digital India Foundation (ADIF). The CCI's decision, made on Friday, involves merging this complaint with ongoing investigations into similar issues. The Director General (DG) has been tasked with conducting a thorough examination of Google's actions within the AdTech ecosystem.

ADIF's complaint accuses Google of anti-competitive behaviour across its advertising technology stack. Allegations include self-preferencing its services, 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. ADIF claims these practices harm publishers and advertisers while limiting market access for competing AdTech providers.

Google's Response and CCI's Investigation

Google responded to the CCI's order by stating, "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." Despite Google's denial of the allegations, the CCI plans to scrutinise these claims during their investigation.

The CCI believes ADIF's involvement could provide valuable insights due to its representation of startups and digital ecosystem stakeholders. The commission found no legal barriers to combining this case with existing investigations. It is satisfied that Google's conduct requires examination under Section 4 of the Competition Act, which addresses abuse of dominant position.

Previous Complaints and Ongoing Investigations

The CCI has decided to consolidate this matter with four existing cases, directing a comprehensive report after investigation. Allegations in ADIF's current complaint overlap with those in the Publishers Case supra, prompting the commission to merge them under Section 261 of the Act. However, Google maintains it operates in a competitive AdTech market in India alongside players like Xandr, Amazon Ads, and The Trade Desk.

In a separate ruling, the CCI dismissed another ADIF complaint against Google. The regulator concluded that the issues raised had already been examined and resolved in previous cases. It was not persuaded by ADIF's reasons for distinguishing its allegations from those previously addressed by the commission.

Concerns Raised by ADIF

ADIF 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. These alleged unfair conditions imposed by Google as part of its Google Ads Policies have already been reviewed and settled by the commission in earlier decisions.

The CCI stated that these issues were either identical or substantially similar to those examined before. Consequently, it directed that this matter be closed immediately under Section 262A of the Act.

With inputs from PTI