CCI to Investigate Google for Anti-Competitive Practices in Gaming Sector following Winzo’s Complaint

The Competition Commission of India ( CCI ) initiated an investigation into Google and its affiliates for alleged anti-competitive practices in the listing of real-money gaming ( RMG ) apps on the Google Play Store. The scrutiny arises from a complaint filed by WinZO Games which accused Google of abusing its dominant position to favor select gaming categories such as Daily Fantasy Sports ( DFS ) and Rummy while sidelining others.

The CCI’s 24-page order directs the Director General ( DG ) to complete the investigation and submit a consolidated report within 60 days. While the observations are prima facie, the investigation could impact Google and the rapidly growing RMG sector in India.

Become a PF & ESIC expert with our comprehensive course – Enroll Now

Allegations Against Google

• Selective Inclusion of Apps: WinZO alleges that Google’s pilot program for DFS and Rummy apps grants them a competitive edge by providing direct access to Android’s massive user base through the Play Store, leaving other RMG apps at a disadvantage.
• Denial of Market Access: The exclusion of non-DFS and non-Rummy RMG apps effectively prevents them from accessing a “must-have” platform for app distribution, limiting visibility and market potential.
• Sideloading Warnings: Users attempting to sideload apps outside the Play Store encounter warnings that, according to WinZO, mislead consumers and damage the reputation of these apps.
• Advertising Restrictions: Google’s restrictive advertising policies only allow ads for DFS and Rummy apps, which WinZO claims unfairly benefits a select few players in the market.
• Prolonged Pilot Program: The extended duration of the pilot program for DFS and Rummy apps amplifies their competitive advantage while keeping others excluded, creating an unequal playing field.

CCI’s Observations

The CCI observed that Google’s dominant role in the Android ecosystem gives it considerable power over app distribution and advertising. The regulator flagged the following concerns:

• Selective Practices: Google’s policies appear to violate Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Competition Act, which prohibit abuse of dominant position.
• Market Distortion: By favoring DFS and Rummy apps, Google creates a two-tier market where excluded apps face significant disadvantages.
• Ambiguity: Google’s justifications for its selective policies were deemed inconsistent and insufficient.

The CCI expressed concerns that Google’s practices may stifle competition and harm innovation in India’s RMG sector which is projected to grow from $3.8 billion in FY24 to $9.2 billion by FY29.

Become a PF & ESIC expert with our comprehensive course – Enroll Now

Google’s Defense

Google denied allegations of anti-competitive practices stating that its policies are designed to comply with local laws and mitigate risks. It justified the inclusion of DFS and Rummy apps as games of skill under Indian law. Google also defended its sideloading warnings as standard security measures.

WinZO’s Response

WinZO, a leading platform offering over 100 games across 14 languages, claimed that Google’s policies are discriminatory and stifle fair competition. Saumya Singh Rathore, co-founder of WinZO, welcomed the CCI’s move.

The CCI investigation comes amid increasing global scrutiny of Google’s practices. Recently, United States regulators have proposed breaking up Google to prevent it from leveraging its dominant position to squash competition.

The U.S. Department of Justice in a 23-page proposal recommended that Google:

• Spin off its Chrome browser and unbundle Android from other services.
• Ban default search deals with companies like Apple which currently bring Google over $26 billion annually.
• Share search data with rivals to level the playing field.

The proposal follows an August ruling by U.S. District Judge Amit Mehta, which labeled Google a monopolist. If approved, these measures could significantly disrupt Google’s operations, which are expected to generate over $300 billion in revenue this year.

The recommendations echo the antitrust case against Microsoft in the 1990s though a similar breakup order against Microsoft was overturned on appeal. Many experts believe this precedent may influence Mehta’s final ruling which is expected by September 2025.

Become a PF & ESIC expert with our comprehensive course – Enroll Now

The investigation also coincides with growing scrutiny of Google’s practices in India and abroad. Recently, the CCI appealed to the Supreme Court against the National Company Law Appellate Tribunal ( NCLAT ) ruling that partially upheld a Rs.1,337.76-crore fine imposed on Google. The fine was levied for alleged anti-competitive practices in the Android ecosystem, including app distribution restrictions and abuse of dominance in markets such as the Google Play Store and Google Search. Read More

The CCI has also challenged NCLAT’s failure to enforce stricter penalties and directives against Google on sideloading restrictions, pre-installation policies, and search engine defaults. The appeal points out the CCI’s concerns about Google’s influence over the Indian digital market and its impact on competition and innovation. Read More

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates