Competition watchdog expands probe into Google's ad tech services in India

The Competition Commission of India (CCI) announced on January 8, 2025, that it would expand its investigation into Google's advertising technology services, following a new complaint filed by an Indian tech entrepreneur.

According to the CCI order, Maulik Surani, co-founder of Surat-based Capset Infotech, alleged that Google has violated multiple provisions of India's Competition Act, 2022. The complaint focuses on Google's dominance in digital advertising intermediation tools, which facilitate real-time placement of display advertisements across websites and mobile applications.

The Commission identified three distinct markets affected by Google's practices: publisher ad servers, ad buying tools for advertisers, and ad exchanges in India. Additionally, the general web search services market was included in the investigation's scope.

The complaint outlines several specific allegations against Google's advertising technology practices. According to the CCI documents, Google's integration of DoubleClick for Publishers with its Ad Exchange into Google Ad Manager has allegedly created barriers for competitors and limited publisher choices. The tech giant is also accused of imposing unfair conditions through its Open Bidding policy, where it simultaneously acts as both auction host and participant through its Ad Exchange platform.

Financial implications for publishers emerged as a significant concern in the complaint. The CCI noted that Google's fees through its Ad Manager service have reportedly increased from 9% to over 30%, which the complainant characterizes as exorbitant. Furthermore, the order highlights concerns about transparency, stating that while other ad tech providers typically disclose their service fees, Google Ads stands as an exception.

The investigation will examine Google's Unified Pricing Rule, which allegedly functions as a de facto price parity clause. According to the complaint, this rule restricts publishers' ability to create competitive pricing structures and prevents third-party exchanges from effectively competing on price.

The Commission has decided to combine this new complaint with three existing investigations - Case Nos. 41 of 2021, 10 of 2022, and 36 of 2022 - citing substantial overlap in subject matter. The Director General has been instructed to conduct a comprehensive investigation into the alleged practices and submit a consolidated report.

The order reveals that Google's alleged leveraging of its dominant position in general web search to protect its market position in ad tech markets will also fall under scrutiny. The investigation encompasses potential violations of both Section 3(4) and Section 4 of the Competition Act, which deal with anti-competitive agreements and abuse of dominant position, respectively.

This development marks a significant expansion of regulatory oversight into digital advertising practices in India, reflecting similar investigations conducted by competition authorities in other jurisdictions. The consolidation of multiple cases suggests a systematic approach to examining the complex interrelationships within digital advertising markets.

The CCI's investigation will particularly focus on how Google's various ad tech tools interact and their impact on competition in India's digital advertising landscape. This includes examining the relationships between publisher ad servers, which manage advertising space on websites and mobile applications, and ad buying tools that automate campaign management for advertisers.