Google has been accused of anti-competitive practices in both the online search advertisement and online display advertisement.
The Alliance of Digital India Foundation (ADIF), a think-tank dedicated to digital start-ups, has lodged a complaint with the Competition Commission of India (CCI) against tech giant Google, accusing the company of engaging in anti-competitive practices in the online advertising sphere.
The complaint 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 percent of its revenue from advertising, has led to practices that stifle competition and adversely affect Indian businesses.
“The digital advertising landscape is critical for the growth and sustainability of India’s start-up 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,”
ADIF representative said.
ADIF’s complaint highlighted as to how Google imposed 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.
ADIF 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.
ADIF has 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.
ADIF has also highlighted inconsistencies in Google’s ad policy enforcement and the lack of transparency in its ad review and redressal processes. These practices often result in unfair denial of access to Google’s online search advertising platform for many advertisers.
In the display advertising market, ADIF’s complaint contends that Google leverages its dominance across the entire value chain of the ad tech stack. Google engages in self-preferencing by tying its products together, such as DoubleClick for Publishers with AdX, and Display & Video 360 with AdX, according to ADIF complaint. This practice restricts market access for competitors and negatively impacts start-ups that rely on these services.
ADIF’s complaint to CCI also addresses 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 argues that this practice forces advertisers to use Google’s tools, further cementing its market dominance.
ADIF has emphasised that as digital advertising spend continues to grow rapidly in India, it is imperative to address these market imbalances promptly.
ADIF said that it anticipates the CCI to implement both behavioural and structural remedies to counter Google’s alleged abuse of its dominant position.
Source: The Hindu Business Line
