ADIF files complaint with CCI over Google’s alleged dominance in online advertising

The Alliance of Digital India Foundation (ADIF) has filed a complaint with the Competition Commission of India (CCI) over Google’s alleged anti-competitive practices in the online advertising sphere.

“The complaint meticulously outlines Google’s dominant position and purportedly abusive behaviour in both the online search advertisement and online display advertisement markets. ADIF contends that Google's control over major online platforms, coupled with the fact that it derives 97% of its revenue from advertising, has led to practices that stifle competition and adversely affect Indian businesses,” said a statement from ADIF on Monday.

ADIF, which was set up in 2020, advocates for domestic start-ups and app developers, and has in the past also taken up issues on their behalf. Its members include Paytm, Matrimony.com, and MapymyIndia, among others. It has been one of the supporters of the proposed Digital Competition Bill that seeks to check anti-competitive behaviour by Big Tech firms.

In its complaint to CCI, ADIF has also highlighted how Google imposes unfair conditions on advertisers in the realm of online search advertising, through its ad policies. “These include restrictions on call assets and prohibitions on third-party technical support,” it said, adding that it has also raised concerns about the opacity of Google’s ad ranking system, describing it as a “black-box approach” that leaves advertisers in the dark about the services they are paying for.

It has also been argued that Google’s practices regarding trademark usage in keyword bidding create an artificial inflation of advertisement prices. “Google allows competitors to bid on trademarked keywords, leading to a bidding war that ultimately benefits Google at the expense of advertisers and trademark owners,” it said.

ADIF’s complaint to CCI has also raised concerns over Google's practices regarding YouTube ad inventory, alleging that the tech giant restricts advertisers' choices by linking access to this inventory with the use of Google's Display & Video 360 platform. ADIF has argued that this practice forces advertisers to use Google's tools, further cementing its market dominance.

“The digital advertising landscape is critical for the growth and sustainability of India's startup ecosystem. Our complaint to the CCI is a crucial step towards ensuring that this vital market operates on principles of fairness, transparency, and equitable competition. We believe that addressing these issues will not only benefit advertisers and publishers but will also foster innovation and create a more vibrant digital economy in India,” said Prateek Jain, Associate Director-Starup and Alliances, Alliance of Digital India Foundation (ADIF).