New Delhi, Nov 28 (PTI) Fair trade watchdog CCI on Thursday ordered a probe against Google and its affiliates in relation to listing of real money gaming apps on Play Store after finding that their practices prima facie violate competition norms.
The order has come on a complaint filed by WinZo Games Pvt Ltd, a digital gaming platform, alleging that the tech giant abused its dominant market position to stifle competition in Real Money Gaming (RMG) and online advertisement space.
The watchdog has ordered a detailed probe by its investigation arm Director General (DG) after prima-facie finding that Google has violated Section 4 of the Competition Act that pertains to abuse of dominant market position.
WinZo alleged that Google's discriminatory policies were enforced through its Play Store, payment platform Google Pay, and ad service Google Ads. It also said these policies have restricted market access and favoured specific gaming categories, creating an unequal playing field.
As per the complaint, Google's pilot programme, launched in September 2022, allowed only Daily Fantasy Sports (DFS) and Rummy apps to be hosted on the Play Store. This decision was arbitrary and discriminatory, favouring specific developers, and excluding others including Winzo, it claimed.
In its 24 page-order, the watchdog said it is of the prima facie view that the restrictions imposed by Google on advertising through its platform limit or restrict the provision of RMG apps other than DFS and Rummy as well as their technical and scientific development in violation of competition law.
"Furthermore, by blocking access to an important advertising channel, Google appears to deny market visibility of such RMG apps, thereby prima facie resulting in denial of market access for such RMG apps in violation of Section 4(2)(c) of the Act. This prima facie also appears to be discriminatory conduct in violation of Section 4(2)(a)(i) of the Act," it added.
The Commission highlighted the Google's dominant position, including licensable operating systems for smart mobile devices, app stores for Android devices, and online search advertising.
Google's selective approach to RMGs created a "two-tier market," unfairly benefiting some app developers while disadvantaging others, CCI noted.
Further, the regulator flagged concerns over the indefinite extension of the pilot programme and its potential to entrench market dominance for select RMG apps, which reportedly gained significant user traction during the programme.
"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," CCI said.
Meanwhile, Google justified its actions citing legal, regulatory, and safety considerations. It argued that the fragmented regulatory framework for RMGs in India necessitated caution. It also defended the pilot programme, stating that it was designed to better understand the RMG landscape in India, according to the order.
The inclusion of DFS and Rummy was based on their legal recognition as skill-based games by Indian courts, Google argued, adding that the extended pilot was a cautious approach to navigating evolving regulatory landscapes, the order said.
On advertisements, Google maintained that its policies have been consistent and denied allegations of selective enforcement. It said that all advertisements are subject to uniform review for policy compliance.
In October 2022, CCI had imposed fines totalling Rs 2,274 crore in two cases with respect to abuse of dominance in the Android ecosystem and Play Store policies. The rulings were also challenged by the company. PTI HG RAM HVA
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