CCI Launches Probe Against Google: What's The Complaint?

The Competition Commission of India has launched a probe against Google for 'unfair business' with respect to listing of real money games on Play Store.

CCI started the investigation on receiving a formal complaint from the gaming company called Winzo games. In the complaint, Winzo Games alleges that Google is using its dominant position in the market to discriminate against gaming companies. Winzo Games further accuses the tech-giant for engaging in anti-competitive practices in the country.

“The Informant has submitted that Play Store restricts hosting of gaming applications that offer Real Money Games (RMGs) in India. Due to Google’s abovementioned unreasonable and restrictive policy all apps offering real money games of skill are only available for download from their website (a process called sideloading). Thus, the Informant’s app can only be downloaded using its website,” CCI wrote in its order.

“It has been submitted that when users access the website for downloading the Informant’s app on Android devices, a disclaimer/warning is displayed... The same is claimed to be not only misleading which tarnishes Informant’s market reputation but also is an active misrepresentation resulting in loss of business,” the organisation added.

CCI has also directed the Director General to probe the company and submit a detailed report within 60 days.

“The Commission directs the Director General ('DG') to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act,” CCI stated.

In the 24-page order, CCI noted that selective inclusion of DFS and Rummy apps gives them an undue competitive advantage.

The agency also flagged concerns regarding Google's sideloading warnings displayed when users attempt to download RMG apps. These warnings are tarnishing Winzo Games' reputation, as per the company and is discouraging potential users from using its app. According to Winzo, these warnings are fairly standard and aimed at safeguarding users.

According to the regulator, Google's justifications for its pilot programme and advertising policies were inconsistent and ambiguous. "The long duration of Google's pilot programme, risks perpetuating the advantages conferred upon selected participants, such as DFS and Rummy apps."

CCI says the temporal extension amplifies the anti-competitive effects by ensuring these apps continue to enjoy preferential access and visibility, which other competitors are denied.

CCI also noted that Google's dominance in the Android ecosystem made it imperative to assess its policies for anti-competitive outcomes. Since Play Store is pre-installed on all Android phones, it is seen as a "must-have" platform for app developers.

The exclusion of non-DFS and non-Rummy RMG apps from the Play Store amounts to a denial of market access, the Commission said.

(With PTI inputs)