According to a report in The Economic Times, the foundation described the opacity of Google’s ad ranking system as a “black-box approach” that leaves advertisers in the dark about the services they are paying for.
“The digital advertising landscape is critical for the growth and sustainability of India’s startup 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,” said Prateek Jain, Associate Director-Startup and Alliances, Alliance of Digital India Foundation (ADIF).
“We believe that addressing these issues will not only benefit advertisers and publishers but will also foster innovation and create a more vibrant digital economy in India,” Jain added.
‘Google’s dominant position has stifled competition’
As per ADIF, Google’s dominant position has not only stifled the competition but also harmed Indian businesses. Google derives 97% of its revenue from advertising, it said. The complaint highlights several areas of concern, including anti-competitive practices in search advertising as well as dominance in digital advertising.
In terms of search advertising, ADIF alleged that Google imposes unfair conditions on advertisers through restrictive ad policies, lacks transparency in ad ranking, and artificially inflates ad prices through trademark keyword bidding.
When it comes to dominance in display advertising, the ADIF alleged that Google’s control over the entire ad tech stack, including self-preferencing practices, restricts competition and limits opportunities for other players.
ADIF believes that addressing these issues is crucial for the growth of India’s startup ecosystem and for fostering a fair and competitive digital advertising landscape. It is also seeking intervention from the CCI to probe Google’s practices and take appropriate action.
