The Competition Commission of India (CCI) has escalated its investigation into Google’s grip on India’s digital advertising sector by initiating a more comprehensive examination of its alleged anti-competitive behavior. This action stems from a formal complaint by the Alliance of Digital India Foundation (ADIF) that Google’s market control is anti-competitive and is causing significant harm to businesses in India.

What’s Happening?

The CCI stated that given the scale of the new investigation, it would be integrated with other ongoing matters, thereby forming a single inquiry into the multiple advertising- Google issues. The Director General has been instructed to analyze Google’s value chain in online advertising as well as in ad tech servicing and syndication, with a collective report anticipated later.

The Core of the Complaint

ADIF’s 2024 complaint paints a troubling picture of Google’s dominance, pointing out that the tech giant controls significant online properties and derives a staggering 97% of its revenue from advertising. What’s the essence of the complaint? Google’s activities purportedly “restrain trade and have a negative impact on Indian enterprises” in both the online search and display advertising domains.

Google’s Response

As part of their statement, Google acknowledged the CCI’s directives, expressing relief over the part of the complaint that was dismissed. The company remains steadfast that its advertising systems provide value to advertisers, publishers, and users, and that all actions taken are within the bounds of Indian competition law. Google clarified:

“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.”

A Long History of Tussles

This is not the first time Google has come into conflict with the CCI. The commission has been following the company since 2021. In 2022, Google sustained two significant fines: ₹936 crore for anti-competitive practices concerning its Play Store policies, and another ₹1,337.76 crore for its alleged monopolistic practices concerning the Android mobile ecosystem.

Why Does This Matter?

The digital economy thrives on advertising, and the results of these probes have the potential to redefine the way Indian companies interact with international companies.

With Google’s market control under a legal scanner, the case is likely to be critical for the establishment of laws governing competition and digital commerce in India.

Read More: Google’s Online Ad Empire Under Fire: CCI Deepens Antitrust Probe—What’s Next for India’s Digital Ecosystem?