India’s Competition Commission (CCI) has intensified its scrutiny of Google’s online display advertising operations. On Friday, August 1, the regulator ordered a comprehensive investigation into Google’s AdTech conduct after receiving a complaint from the Alliance of Digital India Foundation (ADIF).
The CCI decided to club ADIF’s complaint with four ongoing investigations into Google’s advertising practices and directed its Director General (DG) to submit a consolidated report. This action signals a deeper review of how Google operates across India’s digital advertising ecosystem.
ADIF Accuses Google of Anti-Competitive Practices
ADIF represents Indian startups, digital companies, and entrepreneurs. It accused Google of abusing its dominant market position in the online display advertising market. The foundation claimed that Google manipulates multiple layers of the AdTech stack to favor its own services and reduce opportunities for rivals.
The complaint highlighted three key practices:
- Self-preferencing its own services: Google allegedly prioritizes its AdTech products over those of competitors in the digital advertising ecosystem.
- Tying and bundling products: ADIF alleged that Google bundles its publisher ad server, DoubleClick for Publishers (DFP), with its ad exchange (AdX). This bundling allegedly forces publishers to rely on Google’s entire suite of tools.
- Restricting access to YouTube ad inventory: The foundation claimed Google requires advertisers to use its demand-side platform (DV360) to access premium YouTube ads, limiting the reach of competing platforms.
ADIF argued that these practices hurt publishers and advertisers while blocking new AdTech entrants from fair competition. It emphasized that startups and small publishers suffer the most, as they rely heavily on transparent and competitive ad markets to sustain their businesses.
CCI Finds Prima Facie Case
After reviewing ADIF’s complaint, the CCI found enough initial evidence to proceed under Section 4 of the Competition Act, which addresses abuse of dominant position. The regulator observed that Google’s practices could distort market competition and foreclose opportunities for rival AdTech providers.
To streamline the process, the CCI clubbed the new complaint with four existing investigations against Google in the AdTech space. These probes examine similar allegations of self-preferencing, tying, and market foreclosure.
The CCI stated that ADIF’s involvement enhances the investigation, as it represents key stakeholders in India’s digital ecosystem. The participation of startups and publishers can provide practical insights into how Google’s conduct impacts market access and revenue generation.
Google Denies Wrongdoing
Google rejected all allegations and defended its advertising operations. The company stated that India’s AdTech market remains highly competitive, with active players such as Amazon Ads, The Trade Desk, and Xandr.
Google claimed that its products are interoperable and do not force publishers or advertisers into exclusivity. The company said it supports healthy competition and benefits all stakeholders in the advertising ecosystem.
A Google spokesperson commented:
“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 assurances, the CCI confirmed that investigators will verify these claims during the consolidated probe.
CCI Dismisses a Separate ADIF Complaint
Alongside its order for a detailed probe, the CCI dismissed another complaint from ADIF targeting Google Ads policies. In this complaint, ADIF raised four major concerns:
- Prohibition on third-party technical support advertisements
- Restrictions on “Call Ads” on desktops
- Lack of transparency in ad ranking mechanisms
- Allowing competitors to bid on trademarked keywords
The commission closed this case under Section 26(2A) of the Competition Act. It ruled that these issues had already been examined in previous investigations and did not require a new probe.
The CCI explained that the allegations were either the same or substantially the same as those previously assessed. It concluded that no fresh evidence justified reopening the matter.
Core Focus of the Investigation
The ongoing consolidated investigation now focuses on Google’s integrated AdTech ecosystem, which includes:
- DoubleClick for Publishers (DFP): A tool that helps publishers manage and sell ad inventory.
- Ad Exchange (AdX): A real-time marketplace connecting advertisers and publishers.
- Display & Video 360 (DV360): A demand-side platform that allows advertisers to buy ad inventory, including premium YouTube placements.
ADIF alleges that Google leverages its control over all three layers to prioritize its own services. For example, publishers using DFP may feel compelled to connect to AdX, and advertisers may need DV360 to access YouTube ads.
If the DG confirms these practices, the CCI could find Google guilty of abusing its market dominance by foreclosing competition and restricting market access.
Impact on India’s Digital Advertising Market
India’s digital advertising market is expanding rapidly, fueled by programmatic ad buying and automated platforms. Google’s command over multiple touchpoints in this ecosystem raises serious competition concerns.
The alleged practices could impact the market in several ways:
- Reduced advertiser choice: Advertisers may feel forced to use Google tools to access premium inventory, shrinking competitive options.
- Lower revenue for publishers: Publishers could earn less if Google’s practices limit fair bidding in auctions.
- Stifled innovation: New AdTech companies and startups struggle to compete when a single player dominates both demand and supply channels.
ADIF’s involvement highlights growing resistance from Indian startups against Big Tech dominance. Many stakeholders argue that a fairer advertising market encourages innovation and sustainable revenue models for local players.
Next Steps in the Investigation
The CCI instructed its Director General to conduct a consolidated probe and submit a detailed report on:
- Whether Google abused its dominant market position
- The extent of self-preferencing, tying, and bundling
- Impact on advertisers, publishers, and competing AdTech providers
- Whether linking YouTube inventory to DV360 creates unfair market conditions
If the DG confirms anti-competitive conduct, the CCI could impose penalties, mandate corrective measures, or recommend structural changes in how Google operates in India’s advertising market.
Conclusion
The CCI’s decision to probe Google’s AdTech operations reflects India’s rising scrutiny of Big Tech. While Google insists on its compliance and denies any wrongdoing, the regulator believes the allegations warrant a detailed investigation.
The outcome of this case could reshape India’s digital advertising ecosystem. A ruling against Google may open the market for more competitors, increase transparency, and benefit advertisers and publishers across the country.
Globally, regulators are challenging Big Tech dominance in digital advertising, and India’s investigation aligns with this trend. The next few months of inquiry will determine whether Google must change its operations in one of the world’s fastest-growing online ad markets.
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