CCI orders probe against Google over allegations of discrimination by Winzo Games

The Competition Commission of India (CCI) on Thursday ordered an investigation against Google after Winzo Games filed information alleging that the tech giant discriminated against Real Money Gaming (RMG) apps through its Play Store policies, advertising restrictions and payment warnings.."On a holistic consideration of the facts and circumstances of the present case, the Commission is of the prima facie view that Google appears to be in violation of Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Act, as detailed in this order, which warrants detailed investigation," the CCI said in its order. The CCI has directed the Director General (DG) to complete the investigation and submit a report in 60 days from the date of receipt of the order. .Winzo Games alleged that Google excludes RMGs like skill-based gaming apps from its Play Store, which in turn forces developers to rely on ‘sideloading’, a process requiring users to download apps via external sources such as websites. According to Winzo, when users access the website for downloading its app on Android devices, a disclaimer/warning is displayed by Google about the risks of the app. The company alleged that these warnings are misleading, harming its reputation and thereby discouraging potential users.It is Winzo’s allegation that since September 2022, Google has allowed only Daily Fantasy Sports (DFS) and Rummy apps to feature on the Play Store under a pilot program. Winzo argued this policy gives undue advantage to these apps while sidelining other RMG platforms, thereby distorting the level playing field. The company has also alleged that Google flags payments to non-DFS/Rummy gaming apps as risky. Winzo claims these warnings are arbitrary and harm its credibility, as they are not applied to competitors in the DFS and Rummy space.According to Winzo, Google Ads has limited its advertisements for DFS and Rummy apps since November 2022, barring other RMG platforms like Winzo from using its advertising ecosystem. Winzo claimed that Google Ads accounted for over 68% of its app installations. Therefore, being barred from advertising on this platform has substantially affected its reach and growth.Furthermore, the inclusion of only DFS and Rummy apps has provided platforms like Dream11 a competitive edge, increasing their market share at the expense of competitors, Winzo contended..Defending itself against these allegations, Google said that it permits ads for DFS and Rummy as they are legally recognised as games of skill in India. According to Google it allows trademarked terms in keyword auctions to promote competition and consumer choice. .After hearing both the sides, CCI came to a prima facie view that Google’s policy of limiting advertisement to selective DFS apps as discriminatory.“Given Google’s pivotal role in the digital advertising ecosystem, any arbitrary criteria for selecting sub-categories of RMG apps allowed to advertise on its platform can raise significant competition concerns. The selective onboarding of certain app categories (i.e., DFS and Rummy) appears to distort the competitive landscape to the disadvantage of other RMG apps excluded from advertising on the Google platform.”The Commission also found that Google’s pilot program allowing only DFS and Rummy apps on Play Store denied market access to non-DFS and non-Rummy RMG apps, especially considering Android’s penetration in the Indian mobile phone market. “By granting preferential treatment to select app categories, Google effectively creates a two-tier market where some developers are accorded superior access and visibility while others are discriminated against and thus, left with a competitive disadvantage. Thus, the Commission is of the prima facie view that such conduct is also in violation of Section 4(2)(a)(i) of the Act. Such practices also prima facie appear to limit or restrict provision of other RMG apps as well as their technical and scientific development, in violation of Section 4(2)(b) of the Act," the order stated.On the issue of warnings shown for payments, the CCI found, “Given the averments of the Informant that these payment warnings are not displayed in Rummy and DFS applications listed on the Play Store, the Commission deems it appropriate to ascertain whether these payment warnings have any connection to selection of these categories of RMG apps for Google’s RMG Pilot.”The anti-trust regulator, however, refused to render any findings on sideloading, as the issue is currently pending before the Supreme Court..Winzo was represented by Advocates Abhishek Malhotra, Srishti Gupta, Atmaja Tripathi, Anukriti Trivedi and Nishtha Chaturvedi.Google was represented by Senior Advocate Sajan Poovayya with Advocates Karan Singh Chandhiok, Avinash Amarnath, Rahul Rai, Shivanghi Sukumar, Raksha Agarwal, Palash Maheshwari, Tarun Donadi, Uday Bali and Aditi Gopalakrishnan..[Read order]