The Competition Commission of India (CCI) received a detailed complaint from the Alliance of Digital India Foundation (ADIF) on Monday, which revealed Google’s purported anti-competitive actions in the online advertising sector.
Google’s dominant position and “purportedly abusive behavior” in the internet search and online display advertising industries were detailed by the ADIF in their lawsuit.
Because Google owns 97% of key internet platforms and gets 97% of its revenue from advertising, the apex body for homegrown entrepreneurs claimed that Google “has led to practices that stifle competition and adversely affect Indian businesses.”
The Alliance of Digital India Foundation (ADIF) Associate Director of Startup and Alliances, Prateek Jain, stated that the state of digital advertising is essential to the expansion and long-term viability of India’s startup scene.
“Our complaint to the CCI is a critical step in guaranteeing that the values of justice, openness, and fair competition govern the operations of this important market. In addition to helping publishers and advertisers, we think that resolving these problems will encourage innovation and boost India’s digital economy,” Jain continued.
The case emphasized how Google’s Ad Policies subject advertisers to unjust terms when it comes to online search advertising.
These included bans on third-party technical help and limitations on call assets, according to the ADIF. Concerning Google’s ad ranking system’s opacity, the foundation called it a “black-box approach” that keeps advertisers in the dark about the services they are paying for.
Moreover, ADIF contended that Google’s policies concerning the use of trademarks in keyword bidding artificially raise the cost of advertisements. Google permits rivals to place bids on trademarked terms, sparking a bidding war that ultimately helps Google at the expense of trademark holders and advertisers.
The foundation also draws attention to Google’s inconsistent application of its ad policy and its opaque ad review and redressal procedures. Many marketers are frequently unfairly denied access to Google’s internet search advertising platform as a result of these actions.
The complaint from ADIF reveals how Google uses its hegemony in the display advertising market to its advantage along the whole ad tech stack value chain. By linking its products together—for example, DoubleClick for Publishers with AdX and Display & Video 360 with AdX—Google participates in self-preferencing.
ADIF emphasized that it is critical to rectify these market imbalances as soon as possible given the rapid growth of digital advertising expenditure in India.
