The Competition Commission of India (CCI) has launched an investigation into Google’s practices surrounding the listing of real-money gaming (RMG) apps on its Play Store. The inquiry follows allegations by WinZO Games, a digital gaming platform, accusing Google of abusing its dominant position to restrict competition in the RMG and online advertisement markets.
WinZO claims Google’s policies disproportionately favour certain gaming categories, such as daily fantasy sports (DFS) and rummy while excluding others. The CCI’s order noted that this creates a “two-tier market,” granting select developers preferential access and visibility while limiting market entry and visibility for competitors.
Pilot programme in question
The controversy centres around Google’s pilot programme, initiated in September 2022, which allowed only DFS and rummy apps on the Play Store. WinZO argued that this selective inclusion excluded other popular gaming categories, such as puzzles, car racing, and carrom, which form part of its offerings. This exclusion, WinZO claims, stifles innovation and denies fair market access to developers outside the preferred categories.
The CCI has also criticised the indefinite extension of the pilot programme, stating that it risks entrenching market dominance for the selected apps by granting them sustained visibility and user traction.
Concerns over market access and advertising
The regulator further highlighted Google’s restrictions on advertising for RMG apps not covered under DFS or rummy. This, the CCI noted, not only limits these apps’ growth but also hinders their technical and scientific development, violating Indian competition law.
Google’s advertising policies, according to the CCI, exacerbate the competitive imbalance by denying non-DFS and rummy apps a critical channel for market visibility. This conduct, the watchdog argued, could be seen as discriminatory under competition regulations.
Google’s defence
According to a Reuters report, Google has defended its policies, citing regulatory, legal, and safety concerns in the fragmented Indian RMG landscape. The tech giant argued that DFS and rummy were included in the pilot programme due to their recognition as skill-based games by Indian courts. Google also maintained that its advertising policies are applied uniformly and dismissed allegations of selective enforcement.
A broader regulatory challenge
This investigation adds to Google’s mounting regulatory troubles in India. In 2022, the CCI imposed fines totalling ₹2,274 crores on Google for anti-competitive practices related to its Android ecosystem and Play Store policies. Globally, Google has faced similar scrutiny, including a recent legal victory overturning a $1.66 billion antitrust fine imposed by the European Union in 2019.
The current probe, expected to conclude within 60 days, underscores the growing regulatory focus on ensuring fair competition in India’s burgeoning digital economy. Whether Google’s policies will be deemed anti-competitive remains to be seen, but the case highlights the challenges of balancing platform regulations with market fairness.
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