CCI orders probe into Google's Adtech dominance after ADIF complaint

Fair trade regulator Competition Commission of India (CCI) has reportedly ordered a detailed investigation into Google's conduct in the online display advertising market on a complaint filed by the Alliance of Digital India Foundation (ADIF).

According to the PTI reports, in an order passed by CCI on Friday, the regulator said it has decided to club the complaint with ongoing investigations in similar cases and directed the Director General (DG) to carry out a consolidated probe into Google's conduct in the AdTech ecosystem.

"The DG is directed to investigate the various alleged practices of Google in Online Display Advertising services and or AdTech intermediation services and submit a consolidated investigation report in the matters, accordingly," it added.

The order reportedly comes in response to a complaint filed by ADIF alleging that Google has engaged in anti-competitive practices across various layers of its advertising technology stack.

According to the PTI report, the complaint by ADIF accuses Google of engaging in anti-competitive behaviour across various parts of its AdTech system. According to ADIF, Google gives preference to its services by linking and bundling its publisher ad server (DFP) with its ad exchange (AdX) and by tying access to YouTube ad inventory with the use of its demand-side platform (DV360).

ADIF, which represents startups, companies and individuals, also alleged that such practices not only harmed publishers and advertisers but also foreclosed the market for competing AdTech service providers.

The CCI reportedly noted that ADIF’s involvement could provide useful insights into the investigation and saw no legal issues with combining the complaint with existing cases. The Commission also said it found enough preliminary evidence to examine whether Google's conduct falls under Section 4 of the Competition Act, which deals with abuse of a dominant position. It reportedly directed that the matter be clubbed with four existing cases and a consolidated report be submitted after investigation.

"Allegations made by ADIF in the present matter already form part of the allegations being investigated in the Publishers Case (supra), in terms of the proviso to Section 26(1) of the Act, the commission decides to club the present matter," the CCI said, according to PTI.

In its response, Google reportedly denied the accusations. It said the Indian AdTech market is competitive, with players like Xandr, Amazon Ads, and The Trade Desk, and that its services are not tied together. Google added that it is reviewing the CCI’s order and supports the decision to dismiss one part of ADIF’s complaint. The company stated that its advertising practices comply with competition laws and benefit all parties involved.

"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," according to a Google spokesperson, as reported by PTI.

Separately, the CCI dismissed another complaint by ADIF against Google, stating that the concerns raised had already been examined and resolved in earlier cases. ADIF had alleged unfair practices related to ad policies, such as bans on third-party tech support ads, limits on ‘Call Ads’ on desktops, lack of transparency in ad rankings and competitor bidding on trademarked keywords.

"All the four instances of alleged unfair and discriminatory conditions imposed by Google upon advertisers as part of its Google Ads Policies as raised by ADIF in the present matter, have already been examined in substance and set to rest by the commission in its previous decisions," the competition watchdog said.