The advertising giant that made a $1 billion bet on India, including a $400 million deal with Flipkart, said it is cutting its ad revenue from the country by 30% and removing it from its online platform.
The move is being made to meet regulatory pressure on online publishers in the country, where regulators have stepped up their scrutiny on ad-blocking services.
“We’re no longer interested in advertising in India,” said Vinod Bansal, senior vice president of digital and digital content at the company.
Flipkarn said in a statement that it has “decided to end its partnership with AdiPT, a leading online platform for content marketing.”
Flipkernews.com is one of India’s largest social networks, and the company has over a million users in the world.
Its move is the latest in a string of moves by online publishers to cut their ad revenue in India, where they face regulatory pressure from authorities who want to crack down on online piracy.
Earlier this month, Flipkarmas parent company Flipkarts parent Flipkarma announced a $150 million bet in India.
Flipkens statement said the company will not advertise in India for the time being and will not engage with Flipks content creators.
Flipks decision to cut ad revenue is the first major ad company to pull ads from India since it began offering advertising in 2016.