CCI Orders Probe Into Google On WinZO’s Complaint

Acting on a complaint filed by gaming startup WinZO, the Competition Commission of India (CCI) has ordered an investigation into Google. 

WinZO accused Google of abusing its dominant position in the app store and digital advertising markets, alleging that its policies unfairly harm real-money gaming (RMG) apps.

WinZO claimed Google’s Play Store does not allow RMG apps, forcing such apps to rely on sideloading – a process that involves downloading apps from sources other than the play store. 

According to WinZO, this process triggers warnings on Android devices that “lack any merit or reason and is completely illegal”, resulting in business losses and reputational damage.

WinZO also highlighted issues with Google Pay, stating that users attempting payments for skill-based games see warnings like “This person might be flagged as risky” or alerts about “unusually high amounts”. 

The startup argued that these warnings are arbitrary, adding that “National Payments Corporation of India (NPCI) has never required/directed payment service providers to display such warnings for payments to real money skill-based game merchants”.

The complaint also targeted Google’s pilot programme, introduced in September 2022, which allows only daily fantasy sports (DFS) and rummy apps on the Play Store. WinZO argued that this selective policy creates an unfair advantage for these apps over other skill-based games.

Further, it pointed to changes in Google Ads policies that restrict advertising to only DFS and Rummy apps. This, it argued, denies other gaming platforms access to a major advertising channel, limiting their reach and growth opportunities.

The CCI said that prima facie, Google appears to be in violation of the competition laws and asked the director general to conduct an investigation and submit a report in 60 days.

The Pilot Programme

In 2022, Google updated its Play Store policy to launch a pilot programme allowing only two types of RMGs on its platform in India – DFS and Rummy. The programme, initially meant to run from September 2022 to September 2023, was later extended indefinitely.

This move led to allegations of unfair practices. WinZO claimed that Google’s decision to include only DFS and Rummy apps gave those games an unfair advantage. By leaving out other RMG apps, Google made it harder for them to reach users, increased their user acquisition costs, and limited their ability to compete.

In its defense, Google argued that it chose DFS and Rummy because they are popular and are considered “games of skill,” which gives it a clearer legal standing amid India’s patchy regulations. 

Google also said that the risks linked to RMG apps influenced its decision to limit the pilot program to just these two types.

WinZO, however, said that Google’s reasons were vague, inconsistent, and lacked evidence.

The CCI also found issues with Google’s actions, stating that giving DFS and Rummy apps direct access to the dominant Play Store provided them with a significant edge over other RMG apps.

The antitrust regulator noted that Google’s pilot programme distorted the market by favouring certain games, while its indefinite extension worsened the problem. 

The CCI said that the extended pilot gave DFS and Rummy apps preferential access and visibility, helping them grow their user base quickly. Citing WinZO’s submission, it said that gaming unicorn Dream11, a popular DFS app, reportedly gained millions of users after joining Play Store under the programme.

The regulator added that such preferential treatment could create barriers for new and smaller competitors in the RMG market, especially since the Play Store is a dominant app distribution platform in India. Exclusion from it severely limits market access for app developers.

The CCI  also acknowledged that Google holds a dominant position in two key markets – operating systems for smartphones and app stores for these systems. 

Commenting on the court order, Saumya Singh Rathore, cofounder of WinZO, said that the “CCI’s order is a step toward restoring fairness in the digital ecosystem”.

“Monopolistic practices stifle innovation and hinder competition, which are the lifeblood of any thriving industry. This decision is a significant move to ensure equitable opportunities for all players, fostering innovation and creating a level playing field that benefits both businesses and consumers,” she added.

The case adds to the regulatory troubles of Google in India. In a similar case in 2022, the CCI imposed a fine of INR 1,337.6 Cr on the search giant for abusing its dominant position in the Indian Android devices segment.

After which Google moved to NCLAT who upheld the CCI’s fine– resulting to which the search engine took the matter to Supreme Court of India, the hearing of which is ongoing at the moment. 

In the same month, the regulator slapped a fine of INR 936 Cr on Google for abuse of its position with respect to Play Store policies. 

Google has challenged both the penalties in courts and the cases are currently ongoing.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.