Why India's antitrust watchdog is investigating Google's adtech business
What's the complaint?
In 2024, the Alliance of Digital India Foundation (ADIF) filed a complaint accusing Google of abusing its dominant position in the digital advertising space, particularly in adtech, the technology behind buying and selling ads online.
ADIF alleged that Google had built a closed ecosystem that unfairly favoured its own products, making it hard for others to compete. Its complaint focused on two key areas: search advertising (ads that show up on Google search results), and display advertising (ads on websites and apps, like banners or videos).
What is ADIF?
ADIF is an industry body representing Indian digital startups and entrepreneurs. Formed in 2020, it has positioned itself as a vocal advocate for fair digital markets in India. ADIF has been at the forefront of several high-profile complaints against global tech giants, notably Google.
For instance, it has filed submissions with the Competition Commission of India challenging Google's Play Store billing policies, arguing that they impose unfair conditions on Indian developers and restrict consumer choice.
ADIF also supported Indian startups during CCI's investigations into Google's dominance in Android and app distribution.
How has CCI reacted?
On ADIF's display advertising complaint, CCI found enough evidence to suggest that Google may have violated India's competition rules.
The regulator has decided to club the complaint with ongoing investigations in similar cases and directed the director general of its investigative wing to carry out a consolidated probe into Google's conduct in the adtech ecosystem.
On Google's search advertising, CCI dismissed this part of the complaint saying the issue had already been addressed and no new evidence had been provided.
What's Google's response?
Google has said it is confident that CCI's scrutiny will affirm that the company's advertising practices have consistently benefited advertisers, publishers, and users, and are fully compliant with competition law. Google has been facing similar scrutiny in other markets, most notably in the US, where the Department of Justice and a coalition of states have accused it of monopolizing key parts of the digital advertising ecosystem. The company has pushed back strongly, arguing that its tools create value for publishers and advertisers and that competition in adtech remains robust.
What's next in the CCI process?
The director general of CCI's investigative wing will begin a formal investigation by probing Google's conduct in the display ad market. If the DG finds information establishing practices such as self-preferencing, opaque auction processes or contract terms, these will be included in the final report. This could result in CCI calling for remedial measures or structural changes at Google related to pricing, access rules, and bundling of services, issues that advertisers and publishers have long raised globally.
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