CCI Launches Investigation Into Google’s Online Ad Practices

India’s competition regulator has launched a fresh investigation into Google’s advertising business. CCI’s probe into Google is set to examine whether the tech giant has been misusing its dominant position in the online display advertising market, Inc42 reported. This move follows complaints that Google is favoring its own services over competitors, potentially violating fair market practices.

In an order dated August 1, CCI combined four complaints against Google relating to anti-competitive practices in the online display ad services market. The order stated, “The DG (Director General) 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.”

What Triggered the Investigation

CCI’s investigation on tech giants has intensified in recent years, especially targeting global firms with significant control over India’s digital economy. In this case, a complaint was filed alleging that Google was giving preferential treatment to its own advertising platforms, such as Google Ads and Display & Video 360, while limiting visibility and access to competing services.

The complaint suggests that this behavior could fall under Google’s alleged anti-competitive practices. If proven, it could have a serious impact on how advertisers and publishers operate in India.

Details of the CCI’s Action

The Competition Commission of India (CCI) said in its preliminary assessment that there is enough evidence to warrant a full investigation. The watchdog has directed its Director General to conduct the probe and submit a report within 60 days.

This antitrust probe against Google India will examine several aspects, including how Google collects user data, manages ad placements, and controls bidding processes across its platforms. The CCI wants to determine whether Google’s practices are harming competition and limiting choices for advertisers and publishers.

Google Responds to the Allegations

In response to the probe, Google said it would cooperate fully with the investigation. The company maintains that its advertising products offer value to both businesses and consumers and that they operate in compliance with Indian laws. However, this isn’t the first time the tech giant has faced scrutiny in India.

Google’s spokesperson said, “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.”

Google’s regulatory challenges in India have been increasing over the past few years. In 2022, the CCI fined Google over its Android licensing model, and there are multiple ongoing cases related to Google Pay, app store billing, and search dominance.

Why This Matters

India is one of Google’s largest and fastest-growing markets. A ruling against the company could lead to major changes in how it operates its advertising business in the country. It may also open the door for smaller players to gain a fairer share of the ad revenue.

Industry experts believe CCI’s probe into Google is part of a broader effort by regulators to keep Big Tech in check and ensure a level playing field in digital markets. The outcome of this investigation could influence how other global firms approach their business practices in India.