CCI initiates probe against Google after WinZO files complaint

On Thursday, the Competition Commission of India (CCI) directed a comprehensive investigation into Google, following a complaint from WinZO Games. The complaint alleges that Google engaged in unfair business practices regarding the listing of real money gaming apps on the Play Store.

CCI has found Google to be potentially in violation of antitrust regulations, citing abuse of its dominant position. In its order, the CCI instructed the Directorate General (DG) to conduct a full investigation and submit a detailed report within 60 days from receiving the directive.

The order said, "On a holistic consideration of the facts and circumstances of the present case, the Commission is of the prima facie view that Google appears to be in violation of Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Act, as detailed in this order, which warrants detailed investigation".

WinZO Games has accused Google of blocking its app from being listed on the Play Store, while simultaneously displaying malware warnings when users try to download the app from its website. WinZO argues that these warnings damage its reputation and deter potential users from accessing the app.

In 2022, WinZO Games filed a case against Google after the company revised its gaming policy on the Play Store. Google began allowing daily fantasy games and rummy, but excluded many skill-based gaming platforms. The CCI's order highlighted concerns over preferential treatment given to platforms like Zupee and MPL, raising issues of discriminatory practices and selective enforcement of policies, which may violate Section 4(2)(a)(i) of the Competition Act.

“Any unfair restrictions imposed by Google on advertisers are likely to have anti-competitive repercussions, adversely affecting their ability to compete in the marketplace.” CCI said.

In response to the allegations, Google told the CCI that its Ads Policy is straightforward and applied consistently. “Google has no commercial interest in refusing ad revenue unnecessarily and its approach reflects both its decision to mitigate legal risk and its obligation to comply with the law”.

In its complaint, WinZO accused Google of failing to justify its selective approval of only two categories of real money gaming (RMG) apps, namely daily fantasy sports (DFS) and rummy. WinZO claimed that Google's responses were inconsistent, unsupported by evidence, and based on assumptions and unverified market data. The Commission noted that the Play Store, pre-installed on all Android devices, is a vital platform for app developers. It added that excluding non-DFS and non-rummy RMG apps from the Play Store effectively denies market access.

“By granting preferential treatment to select app categories, Google effectively creates a two-tier market where some developers are accorded superior access and visibility while others are discriminated against and thus, left with a competitive disadvantage,” CCI said.