After Gaming Business Winzo Filed a Complaint, CCI Orderes an Investigation into Google

Nitin Konde, Varun Bhardwaj

Nov 30, 2024 — 3 min read

CCI Orders Investigation into Google Following Winzo Complaint

In response to a complaint by Winzo Games alleging unfair business practices regarding the listing of real money gaming applications on the Play Store, the Competition Commission of India (CCI) on 28 November ordered a thorough probe into Google.

In its ruling, the CCI determined that Google had abused its dominant position and was therefore prima facie in breach of the Competition Act's antitrust prohibitions. Additionally, within 60 days after receiving this decision, the Commission instructs the DG to finish the investigation and submit a consolidated investigative report.

Based on a comprehensive analysis of the case's facts and circumstances, the Commission believes that Google may be in breach of Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Act, as specified in this judgement. This necessitates a thorough inquiry, the order said.

Why Winzo Took Matters to Court?

In its complaint, Winzo Games, the case's informant, claimed that Google both prevents its game from being published on the Play Store and shows malware alerts to users who try to download it from the website. Winzo said that these cautions damage its brand and deter prospective customers from using its service.

In 2022, Winzo launched a lawsuit against the Play Store when Google modified its gaming guidelines. Google began permitting rummy and daily fantasy games on the Play Store in 2022, but many skill-based gaming sites were left out. In its ruling, the antitrust watchdog pointed out that Google's alleged preferential treatment of online casual gaming platforms like Zupee and MPL raises questions about possible discriminatory practices or selective enforcement of Google's policies, which is against Section 4(2)(a)(i) of the Act.

According to CCI, any unjust limitations Google places on advertisers are probably going to have anti-competitive effects and hurt their capacity to compete in the market.

In response to the accusations, Google told CCI that its ads policy is transparent and consistently applied. In its statement to CCI, Google stated that it had no business incentive in rejecting ad revenue needlessly and that its strategy reflects both its choice to reduce legal risk and its duty to abide by the law.

Google is Not Providing Valid Justification

In its complaint, Winzo also claimed that Google had not offered a convincing explanation for limiting the number of RMG (real money gaming) apps to only two categories and that its responses to this claim had been inconsistent, unsupported, and predicated on conjecture and unconfirmed market data.

The Play Store is considered a "must-have" platform for app developers because it comes pre-installed on all Android devices. According to the Commission, excluding non-DFS and non-Rummy RMG apps from the Play Store is equivalent to denying them access to the market.

According to CCI, Google essentially establishes a two-tier market by giving preferential treatment to specific app categories, giving some developers better access and visibility while discriminating against and putting others at a competitive disadvantage. While directing a thorough inquiry, the fair trade regulator stated that nothing in the decision would amount to a final judgement on the case's merits. The DG will carry out the probe "without being influenced in any way whatsoever by the observations made herein," it stated.

WinZo Games co-founder Saumya Singh Rathore stated in a statement following the CCI order that the order is a step in the right direction towards re-establishing equity in the digital economy. A strong industry depends on competition and innovation, both of which are suppressed by monopolistic methods. This choice is an important step towards guaranteeing fair chances for all participants, encouraging creativity, and establishing a level playing field that is advantageous to companies and customers alike.