Big Tech
CCI Launches Probe Into Google Over Winzo’s Allegations of Unfair Practices in Gaming Ads
The Competition Commission of India (CCI) has initiated an investigation into Google following complaints filed by Winzo Games, a popular gaming platform, alleging unfair business practices. Winzo, which offers a wide range of casual gaming options, accused the tech giant of discriminatory actions, particularly regarding the display of ads and access to the market. Winzo’s complaints claim that Google is extending preferential treatment to certain online gaming platforms, specifically Zupee and MPL while blocking ads from Winzo.
The CCI’s intervention is based on Winzo’s assertion that Google is abusing its dominant position in the market by selectively enforcing its advertising policies. According to Winzo, its advertisements were being blocked, while competitors like Zupee and MPL were allowed to promote their platforms without any hindrances. The gaming company contends that this selective enforcement distorts competition and gives an unfair advantage to its rivals.
In response to Winzo’s complaint, the CCI has directed its Director General (DG) to conduct a detailed investigation under Section 26(1) of the Competition Act, 2002. The investigation must be completed within 60 days, although the CCI has made it clear that its observations at this stage are prima facie and not a final judgment. The probe aims to determine whether Google’s practices violate the provisions of the Competition Act, particularly in relation to potential abuse of dominance under Section 4(2)(a)(I).
CCI orders probe against Google over allegations of discrimination by Winzo Games
report by @thyagarajan_law
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The fair trade regulator’s concern primarily revolves around Google’s treatment of gaming apps, especially in the real money gaming (RMG) sector. The CCI highlighted the preferential inclusion of fantasy sports (DFS) and rummy apps on Google’s Play Store, which could potentially disadvantage other gaming apps such as Winzo. The regulator noted that direct access to end-users through the Play Store provides these selected apps with a significant competitive edge, further consolidating their dominant market position.
Another issue raised by Winzo Games is Google’s practice of displaying warnings when users attempt to sideload real money gaming (RMG) apps, which the company claims tarnishes its reputation and discourages potential users. While Google has justified these warnings as standard security measures to protect users, Winzo argues that they are being used as a tool to hinder competition and limit market access.
In addition, the CCI pointed out the inconsistency and ambiguity in Google’s explanations regarding its advertising policies and its pilot programs. Winzo claims that the prolonged duration of Google’s pilot program provides ongoing advantages to select apps, further entrenching their market dominance and undermining the competitive landscape for other players.
The CCI also flagged concerns regarding Google’s dominance in the Android ecosystem, particularly its control over the Play Store, which is pre-installed on all Android devices. This dominance makes the Play Store a “must-have” platform for app developers, and the exclusion of non-DFS and non-rummy apps from the store can be seen as a denial of market access.
The outcome of the CCI’s investigation could have significant implications for Google and the broader app ecosystem in India. With its dominance in the Android space, Google’s investigation will likely lead to increased scrutiny over its policies and practices, particularly those affecting competition in key sectors like online gaming with fantasy sports (DFS) and rummy apps. The ongoing probe into Google is another chapter in India’s broader efforts to regulate big tech companies and ensure their fair and transparent market practices.
