The Competition Commission of India has launched a probe into Google for alleged abuse of its dominant position in the real money gaming (RMG) ecosystem.

Key Developments

• CCI Investigation: The CCI’s Director General has been tasked with conducting a thorough investigation within two months.
• Complaint by Winzo: The investigation stems from a complaint by RMG platform Winzo, alleging discriminatory practices by Google.
  • The complaint centers on a pilot project introduced by Google that selectively allowed some fantasy sports (DFS) and rummy apps, such as Dream11, on its Play Store.

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Allegations Against Google

• Market Distortion: The CCI raised concerns that Google’s prolonged pilot programs and lack of transparency in enforcement policies distort competition in the RMG ecosystem.
  • Such practices could stifle innovation and hinder smaller ventures from entering the market.
• Abuse of Dominant Position: The allegations include abuse of Google’s dominance by selectively offering cheaper distribution to certain apps while restricting others.

Case Study of Alleged Manipulation

• Discriminatory Pilot Programme: In 2022, Google initiated a pilot program to test hosting only Daily Fantasy Sports (DFS) and rummy apps on its Play Store in India for a year.
  • Winzo claimed the pilot’s limited scope was “devoid of any reason” and discriminatory, providing competitors like Dream11 a significant market advantage.
  • Dream11 allegedly gained 1.7 crore new users within two months of the pilot program’s launch.
•  Restrictive Advertisement Policies: Google restricted its advertising policy to allow only DFS and rummy apps to host ads on its platform.
  • Winzo argued that this limited access to Google’s advertising tools, giving unfair advantages to selected apps.
• Sideloading Barriers: After users sideloaded the Winzo app from its website, Google Pay displayed warnings during in-app payments, such as:
  • “This person might be flagged as risky.”
  • “This is an unusually high amount.”
  • These messages potentially deterred users from completing transactions, affecting Winzo’s business.

Google’s Defence against the allegations

• Ambiguity in Legal Definitions: Google cited the absence of an objective definition of “games of skill” in India, as such classifications depend on specific game formats, features, and rules.
• Fragmented Gaming Regulations: The company highlighted the fragmented nature of gaming laws in India, with differing regulations across states.
• Pending Rules from the IT Ministry: Google noted that online gaming rules notified by the IT Ministry, which require self-regulatory bodies to approve games on platforms like Play Store, are yet to be fully implemented.

Trend of Increasing Scrutiny on Tech Giants

• Action Against Meta: Days before the Google probe, the CCI fined Meta (parent company of WhatsApp) ₹213.14 crore for abusing its dominant position regarding WhatsApp’s controversial 2021 privacy policy update.
  • The CCI directed Meta and WhatsApp to implement behavioral remedies within a defined timeline.
  • Prohibit sharing user data from WhatsApp with other Meta companies for advertising purposes for five years.
• Broader Antitrust Trends: The investigation reflects India’s growing scrutiny of tech giants over anticompetitive practices, particularly in sensitive digital ecosystems like gaming and data privacy.

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About the Competition Commission of India (CCI)

• Establishment: The CCI was established in 2003.
• Ministry: Operates under the Ministry of Corporate Affairs.
• Statutory Body: Enforces competition law under the Competition Act, 2002.
• Background: Formed based on recommendations of the Raghavan Committee, replacing the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.
• Aims and Objectives
  • To promote and sustain competition in markets.
  • To protect consumer interests and ensure freedom of trade.
  • Functions as a quasi-judicial body, providing opinions to statutory authorities and adjudicating cases.
• Composition: Comprises a Chairperson and up to six members.
• Decisions and orders issued by the CCI are binding on the parties involved.
• Judicial and Appellate Mechanism: Competition Appellate Tribunal (COMPAT) established under the Competition (Amendment) Act, 2009 to hear appeals against CCI’s decisions.
  • Replaced in 2017 by the National Company Law Appellate Tribunal (NCLAT).

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