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The Competition Commission of India (CCI) has launched an investigation into Google following allegations by gaming platform Winzo Games that the tech giant abused its dominant market position in app distribution, payment systems, and advertising.

The CCI will examine whether Google’s Play Store policies, including its treatment of real-money gaming (RMG) apps, constitute anti-competitive behavior.

Winzo claimed Google unfairly limited the availability of RMG apps to only daily fantasy sports (DFS) and rummy under a pilot program. All other RMG apps are excluded, requiring users to sideload them, a process Winzo said is undermined by Google’s warnings about potential malware risks.

These warnings, the company alleged, are misleading and tarnish its market reputation, resulting in a loss of business. Winzo further alleged that these actions “constitute an act of denial of market access” under Section 4(2)(c) of the Competition Act.

Google defended its actions, citing regulatory uncertainties. “There are significant differences in the way different States in India regulate online gaming (including RMGs)… Given this fragmented regulatory framework, allowing all RMG games to be distributed on Play Store would expose Google to legal risk under the gaming laws of some States and the Amended IT Rules,” the company stated.

However, the CCI questioned Google’s justification, stating that the selection of only DFS and rummy apps for the pilot program appears “arbitrary and non-transparent” and risks creating a “two-tier market where some developers are accorded superior access”.

The CCI highlighted Winzo’s data showing that Dream11, a leading DFS app, gained 1.7 crore users within two months of joining the pilot program, significantly boosting its market position.

In January 2024, Google announced plans to expand support for RMG apps on its Play Store, including those not covered by existing licensing frameworks in India, Mexico, and Brazil starting in June. This policy shift, accompanied by a revised service fee model tailored to the RMG industry, followed Google’s pilot program, launched in 2022, which allowed only DFS and rummy apps.

The CCI also raised concerns about Google’s advertising policies. While Google claimed its approach is uniform and based on legal precedent recognizing DFS and rummy as skill-based games, the commission noted inconsistencies.

“Google’s pivotal role in the digital advertising ecosystem means any arbitrary criteria for selecting sub-categories of RMG apps allowed to advertise on its platform can raise significant competition concerns,” the CCI stated.

The investigation is set to conclude within 60 days. The CCI emphasised that the findings are preliminary, and further inquiry will determine whether Google’s practices violate the Competition Act.