Bhavesh Mishra
As Google aggressively expands its use of generative AI in its ad ecosystem in India, the firm is facing growing antitrust scrutiny in the U.S. amid its dominance in the online advertising market.
AI-Powered Advertising Boom in India
In India, Google is quickly integrating generative AI into its ad platforms, transforming the way brands engage with consumers. At a recent virtual media roundtable, the technology giant highlighted AI-powered innovations designed to boost discovery and commerce. Google says its tools are driving real results for advertisers, with platforms such as YouTube, particularly on connected TVs (CTV), and Shorts becoming central to reaching consumer attention in one of the world’s fastest-growing digital economies.
For example, YouTube currently attracts more than 1 billion hours of global watch time every day, with India playing a major role. The rising Indian affinity towards CTV as compared to linear TV is leading advertisers to shift to newer formats. Certain ad campaigns on CTV are experiencing close to a 3.6x rise in conversion rates. At the same time, YouTube Shorts is becoming popular among young users, with 72% of Indian respondents saying that Shorts ads drive their purchase behavior.
Outside of video, Google Search is also changing. AI Overviews with Gemini, Circle to Search, and Google Lens—which now processes close to 20 billion monthly searches—allow for more anticipatory and visual-centric search experiences. Companies are seeing increased return on investment in their campaigns. For instance, fast commerce platform Zepto has seen considerable content creation time savings with AI-driven video tools.
Increasing Antitrust Challenges in the U.S.
Although these innovations hold the potential to drive India’s digital economy, Google is under mounting pressure in the U.S. regarding its market dominance in the online ad business.
On April 17, US District Judge Leonie Brinkema held Google illegally monopolized two ad-tech markets, commenting that the firm was responsible for “willfully acquiring and maintaining monopoly power” in the business of advertising technology by serving as the middleman between buyers and sellers of advertisement content.
The Department of Justice (DOJ) accuses Google of dominating the online ads market using its collection of tools, which include DoubleClick-developed products that it purchased in 2008 for $3.1 billion. Merging DoubleClick’s technology enabled Google to improve ad targeting and analytics capabilities, cementing its dominance in the digital advertising space.
In the antitrust lawsuit, the DOJ alleges Google’s ad stack, utilized in auctions and transactions, dominates the 87% of the U.S. market share, suppressing competition, driving up advertisers’ costs, and extracting publishers’ revenue. The court ruling sets the stage for likely antitrust actions, including a potential dismemberment of Google’s ad product units.
The Times of India
Global Implications and Future Outlook
The U.S. antitrust issues have direct consequences on Google’s international operations. The DOJ is looking for remedies that may involve the breakup of Google’s ad exchange business and steps to rebalance competition in the ad tech sector. Google is reported to have indicated it would appeal the decision, saying its ad tech products are selected by publishers and advertisers because they are effective and cost-effective.
In India, Google’s AI initiatives are gaining traction, with businesses testing AI tools for cost efficiency and growth. However, the company’s practices abroad remain under legal scrutiny. The DOJ is also prosecuting Google’s online search monopoly through its Chrome browser, attempting to prevent the company from utilizing its AI products in online search, such as AI Overviews. If the court decides in the DOJ’s favor, Google might be forced to rethink its AI strategies from the ground up.
Conclusion
Google’s aggressive expansion of AI-driven advertising in India underscores its commitment to innovation and market growth. However, the mounting antitrust scrutiny in the U.S. presents significant challenges that could reshape the company’s global operations. As legal proceedings unfold, the balance between fostering innovation and ensuring fair competition remains a critical consideration for regulators and industry stakeholders alike.
