In a significant move, the Competition Commission of India (CCI) has ordered a detailed investigation against Google LLC and its affiliates for alleged abuse of dominant position in the real money gaming (RMG) ecosystem. 

The decision comes in response to a complaint filed by Winzo Games Private Limited, accusing Google of discriminatory practices that disadvantage other gaming app developers.

The CCI, chaired by Ravneet Kaur, found prima facie evidence of Google violating provisions of Section 4 of the Competition Act, 2002 that prohibits abuse of dominant position. The investigation will scrutinise Google’s policies on app hosting, advertisements and payment warnings, which allegedly favour Daily Fantasy Sports (DFS) and Rummy apps while excluding other skill-based gaming platforms.

Key allegations

1. Discriminatory pilot program

Winzo alleged that Google’s 2022 pilot program on the Play Store exclusively allowed DFS and Rummy apps, sidelining other RMG apps. This resulted in a competitive advantage for selected apps, such as Dream11, which reportedly saw exponential user growth during the pilot phase.

2. Ad restrictions

The complainant accused Google of restricting advertising for non-DFS and non-Rummy apps on its Google Ads platform, allegedly depriving rivals of critical visibility.

3. Payment warnings

Google allegedly displayed arbitrary warnings for payments made via Google Pay to skill-based gaming apps, potentially discouraging users. Winzo argued that similar warnings were not shown for DFS and Rummy apps, raising concerns of bias.

4. Sideloading challenges

Developers of RMG apps not hosted on the Play Store face sideloading requirements, which Google accompanies with malware warnings. Winzo contended that these warnings deter users, creating barriers to market entry.

Google’s defense

Google justified its policies by citing regulatory uncertainties in the Indian RMG sector, fragmented State laws and risks such as fraud and money laundering. The tech giant emphasised that its pilot program was a cautious step to navigate the evolving legal landscape. It denied allegations of discrimination and maintained that its policies were applied uniformly.

CCI’s Observations

The Commission noted Google’s dominant position in critical markets, including licensable operating systems for smart devices, app stores for Android OS, and online search advertising.

It expressed the following concerns:

• Excluding certain RMG apps from the Play Store and Google Ads could lead to denial of market access.

• Prolonged pilots and preferential policies distort competition, amplifying the dominance of selected app categories like DFS and Rummy.

• Lack of transparency in policy enforcement raised red flags about Google’s conduct.

Direction for Investigation

The CCI has tasked its Director General (DG) to conduct a thorough probe within 60 days, focusing on:

• The rationale behind Google’s selective inclusion of DFS and Rummy apps.

• The anti-competitive impact of its advertising policies.

• The effect of payment warnings and sideloading barriers on competitors.

Industry implications

This case is poised to set a precedent for regulating digital platforms in India’s burgeoning gaming industry. The investigation also aligns with global scrutiny of Big Tech firms over their market dominance and competitive practices. This latest development underscores the growing tension between global tech giants and regulators in India, with far-reaching consequences for the digital economy, economy watchers said.

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