The Competition Commission of India (CCI) has initiated a formal investigation into Google over allegations that its app store policies for downloading apps and handling advertisements unfairly target developers of real-money games. This inquiry, prompted by a complaint from WinZO Games Pvt Ltd, marks a critical examination of potential monopolistic practices in the digital economy.
Allegations of unfair practices:
WinZO Games, an online gaming platform, has accused Google of abusing its dominant position in the market by restricting the download of apps that offer real-money games of skill. According to WinZO, such apps are not permitted on Google Play and must be downloaded directly from developers’ websites—a process known as ‘sideloading’. WinZO contends that Google’s policies not only complicate the installation process but also damage developers’ reputations through malware warnings that pop up during the sideloading process.
According to The Mint, WinZO also alleges that Google Pay displays additional warnings when users attempt to make payments for these games, adding another layer of discouragement. The gaming company argues that these practices give undue advantage to certain apps, particularly those allowed under a Google pilot program, thus disrupting the level playing field.
In its defense, Google articulated to the CCI that including real-money games on its Play Store could categorize it as an online gaming intermediary, which is subject to regulatory approval by self-regulatory bodies not yet designated in India. Google also raised concerns about the conflicting legal landscape across central and state regulations regarding online gaming, suggesting that allowing such games on the Play Store could expose the company to significant legal and regulatory risks.
The tech giant further explained that these regulatory complexities influenced its decision to exclude India from countries where real-money games are permitted on its platform. Google had conducted a limited pilot project to assess the regulatory environment in India but has refrained from broader inclusion due to these unresolved issues.
Industry reactions and the path forward:
Saumya Singh Rathore, co-founder of WinZO Games, hailed the CCI’s decision to investigate as a crucial step toward ensuring fairness in the digital space. Rathore emphasized the importance of competition and innovation in the industry, stating, “Monopolistic practices stifle innovation and hinder competition, which are the lifeblood of any thriving industry.”
The CCI clarified that its initial order does not constitute a final judgment on the merits of the case but is a precursor to a thorough investigation to be conducted without bias. This investigation will include Google LLC, Alphabet Inc., Google India Pvt. Ltd., and Google India Digital Services Pvt. Ltd., which are identified as the opposite parties in this case.
As Reuters reports, this probe adds to the series of regulatory challenges Google faces in India, where it has already been penalized for dominant practices in other areas of its operations. The outcome of this investigation could have far-reaching implications for how app stores regulate access and visibility for app developers, particularly those in the burgeoning sector of online real-money gaming.