2024: When regulators rattled Big Tech's dominance

As the year draws to its close, the advertising and media landscape of 2024, in India as well as abroad, could well be described as a regulatory reckoning. As the year unfolded, it became evident that the age of unchecked dominance and opaque practices in the advertising industry was drawing to a close. From hefty fines imposed on Big Tech players to sector-specific guidelines across industries, governments and regulators worldwide sent a clear message: consumer interest, transparency, and fair competition are non-negotiable.

In the United States, Alphabet and Google faced one of the most significant antitrust trials in recent history. Federal prosecutors argued that Google’s monopolistic control over the $225 billion global ad-tech ecosystem stifled competition, inflated advertising costs, and harmed smaller advertisers and publishers. The ongoing trial has spotlighted Google’s alleged anti-competitive practices, including bundling its ad tools to lock in users and tilting auction dynamics in its favor. Central to the case is the government’s push to break up Google’s AdTech business, potentially separating Android and Chrome from its core operations.

Meanwhile, Europe added fuel to the regulatory fire. Meta was slapped with multiple fines in 2023 and 2024 by the European Union for abusing its market dominance, including coercing advertisers into using its integrated ad services, the most recent being one just last month, for $840 million, for unfair practices by Facebook Marketplace.

Similarly, in Australia, legal proceedings accused Meta of misleading users about how their data was being used for targeted ads, bringing the focus back to transparency in consumer data usage. These cases signal an international consensus on the need to check Big Tech’s power, particularly in the digital advertising ecosystem.

India, too, saw its regulators step up in 2024. The Competition Commission of India (CCI) imposed a fine of Rs 1,337.76 crore ($160 million) on Google for abusing its dominance in the Android ecosystem. The penalty highlighted Google’s anti-competitive practices, particularly in app store policies and search advertising.

As Aarushi Jain, Partner at Cyril Amarchand Mangaldas, noted: “Regulators are delivering a strong message to curb mis-advertising, with an aim to protect consumer interest. With increasing compliance requirements and hefty penalties for breaches, businesses must rethink their playbooks and adapt to the changing regulatory landscape.”

Call for transparency

Alay Razvi, Managing Partner at Accord Juris, believes this year marked a turning point for the industry. “The regulatory bodies have introduced stricter norms to iron out issues like non-disclosure of paid promotions and misleading claims, enabling more transparency and accountability to the consumer. This profound impact has forced brands and agencies to create compliance mechanisms and risk mitigation strategies while embracing legal frameworks. The push for transparency will drive a trust-based relationship with consumers, potentially
enhancing brand loyalty.”

Such regulation isn’t limited to India. Globally, the industry saw an intensified focus on holding advertisers and platforms accountable. In the EU, new measures targeted greenwashing, ensuring environmental claims are backed by evidence. In India, these measures were mirrored by the introduction of Greenwashing Guidelines, part of a growing trend to curb deceptive practices in advertising.

Lavin Hirani, Partner Head at MDP Legal, explains, “The most significant change was the Self Declaration Guidelines, requiring advertisers to submit a compliance declaration before airing ads. These updates signal a growing effort to regulate advertising, protect consumers, and curb unfair trade practices.”

Yet, this shift toward greater oversight hasn’t been without challenges. The rapid growth of AI-generated content and influencer marketing, coupled with the increasing complexity of programmatic advertising, has created regulatory grey zones.

As Isheta T. Batra, Founder of TrailBlazer Advocates, observed, “Regulators have actively engaged in dealing with grey areas in advertising, such as surrogate advertisements, deceptive marketing practices, influencer accountability, and AI-generated content. For the advertising ecosystem, this presents a double-edged sword. Stricter regulation promotes consumer trust, but it also forces advertisers to review their strategies, prioritizing legal due diligence and ethics over the quick win."

For Big Tech, these regulatory interventions represent more than just financial penalties; they demand a cultural shift. Companies must now contend with a growing need for transparency, fair competition, and consumer protection. Advertisers, meanwhile, are rethinking their strategies to comply with evolving norms without sacrificing creativity. As Razvi aptly put it, “The legal framework will help standardize fair competition and level the playing field for businesses.”

'Wake-up call'

Looking ahead, the impact of 2024’s regulatory actions will reverberate across the global advertising ecosystem. While compliance costs may rise and operational adjustments will be inevitable, these changes promise a more equitable, consumer-centric marketplace. For brands and agencies, the lesson is clear: the cost of non-compliance — both financial and reputational — far outweighs the investment required to build legally sound practices.

Ultimately, 2024 wasn’t just a year of reform; it was a wake-up call. As Jain pointed out, regulators worldwide have signaled their intent to prioritize consumer interest over corporate profit. Whether it’s the U.S. government’s case against Google, Meta’s fines in Europe and Australia, or India’s tightening grip on misleading advertising, the message is the same: accountability and fairness are here to stay.

The question now is not whether these changes will reshape the advertising industry, but how quickly its players will adapt to a new era of oversight.