Google Faces CCI Probe Over AdTech Dominance Charges

The Competition Commission of India (CCI) has ordered a probe into Google's dominance in the online display advertising market, based on a complaint by the Alliance of Digital India Foundation (ADIF). The CCI alleges that Google has engaged in anti-competitive practices, including self-preferencing its own services, tying and bundling, and linking access to YouTube ad inventory with its demand-side platform. Google denies the allegations, stating that it operates in a competitive AdTech market in India. The CCI has directed the Director General to carry out a consolidated probe into Google's conduct in the AdTech ecosystem.

The Competition Commission of India (CCI) has ordered an investigation into Google's alleged anti-competitive practices in the online display advertising market, following a complaint by the Alliance of Digital India Foundation (ADIF). The probe is part of a broader investigation into Google's dominance across its advertising technology stack.

ADIF, which represents start-ups and app developers, alleged that Google's dominance in the online advertisement markets has created an anti-competitive environment. They claimed that Google's practices, including self-preferencing its own services, tying and bundling, and linking access to YouTube ad inventory with its demand-side platform (DV360), have driven out competitors and imposed exploitative prices on advertisers and publishers [1].

In response to ADIF's complaint, the CCI directed the Director General to carry out a consolidated probe into Google's conduct in the AdTech ecosystem. The investigation will examine various alleged practices of Google in online display advertising services and AdTech intermediation services [2].

Google has denied the allegations, maintaining that it operates in a competitive AdTech market in India with players like Xandr, Amazon Ads, and the Trade Desk. The company stated that its products are interoperable and not tied, but the CCI has directed that these aspects be examined during the investigation [3].

The CCI's order comes after the regulator dismissed a similar complaint by ADIF against Google, stating that the allegations raised were already examined and settled in previous cases. However, the CCI found that the current complaint warranted further scrutiny under Section 4 of the Competition Act, which deals with abuse of dominant position [3].

The investigation is expected to provide insights into Google's market dominance and the potential impact of its practices on competition in the online advertising market. The findings could influence future regulatory actions and shape the competitive landscape in the AdTech ecosystem.

References:
[1] https://economictimes.indiatimes.com/tech/technology/cci-orders-probe-into-googles-practices-in-online-display-ad-market/articleshow/123062075.cms
[2] https://economictimes.indiatimes.com/tech/startups/cci-closes-startup-bodys-complaint-against-google-refrains-from-probe/articleshow/123048301.cms
[3] https://www.thehindu.com/sci-tech/technology/cci-admits-complaint-against-google-over-adtech-dominance-charges-orders-wider-probe/article69891936.ece