CCI Launches Probe Against Google on Complaint by WinZo Games

The Competition Commission of India (CCI) has launched a formal investigation against Google for alleged unfair business with respect to listing of real money games on Play Store. The agency launched the probe after receiving a formal complaint by gaming company Winzo Games. In its complaint, Winzo Games has alleged that Google used its dominant position in the market to discriminate against gaming companies. Winzo Games has also alleged that the tech giant has engaged in anti-competitive practices in the country.

“The Informant has submitted that Play Store restricts hosting of gaming applications that offer Real Money Games (RMGs) in India. Due to Google’s abovementioned unreasonable and restrictive policy all apps offering real money games of skill are only available for download from their website (a process called sideloading). Thus, the Informant’s app can only be downloaded using its website,” CCI wrote in its order.

“It has been submitted that when users access the website for downloading the Informant’s app on Android devices, a disclaimer/warning is displayed... The same is claimed to be not only misleading which tarnishes Informant’s market reputation but also is an active misrepresentation resulting in loss of business,” the organisation added.

CCI has now directed the Director General to probe the company and submit a detailed report within 60 days. “The Commission directs the Director General ('DG') to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act,” CCI wrote in its order.

In its 24-page order, CCI noted that the selective inclusion of DFS and Rummy apps gives them an undue competitive advantage."Direct access to end-users via the dominant Play Store provides a significant edge to DFS and Rummy apps, potentially disadvantaging other RMG applications," the Commission said in its order.

CCI also flagged concerns regarding Google's sideloading warnings displayed when users attempt to download RMG apps. These warnings, Winzo claimed, tarnish its reputation and discourage potential users from accessing its app. Winzo also alleged that warnings on sideloading and payments were standard security measures aimed at safeguarding users.

The regulator also found that Google's justifications for its pilot programme and advertising policies were inconsistent and ambiguous. “The long duration of Google's pilot programme, risks perpetuating the advantages conferred upon selected participants, such as DFS and Rummy apps.”

"This temporal extension amplifies the anti-competitive effects by ensuring these apps continue to enjoy preferential access and visibility, which other competitors are denied," the CCI noted.

The regulator also pointed out that Google's dominance in the Android ecosystem made it imperative to assess its policies for anti-competitive outcomes. The Play Store, being pre-installed on all Android devices, is deemed a "must-have" platform for app developers.

The exclusion of non-DFS and non-Rummy RMG apps from the Play Store amounts to a denial of market access, the Commission said.

(With PTI Inputs)