The national competition regulator in India will open a probe into Google over its “unfair” treatment of Real Money Gaming (RMG) mobile apps.
The Competition Commission of India (CCI) ordered a detailed inquiry into Google following a complaint filed by Winzo Games, which alleged unfair business practices related to the listing of RMG apps in the Play Store.
The body ruled Google to be in a prima facie violation of the country’s anti-trust rules due to its dominant market position.
As such, it ordered the director general to conduct an investigation into the matter, with a report to be submitted within a 60-day period.
The CCI said: “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.”
Winzo slams ‘unreasonable’ India policy
The skill-based gaming operator had argued the company’s “unreasonable and restrictive” policy of restricting RMG apps from the store had meant they were forced to be downloaded on their website, in a process called side-loading.
Winzo further alleged that when users attempt to pay, a “baseless” warning is shown to users flagging the game as a potentially risky place to send money.
Indian gaming laws vary widely by state, but traditionally only game categorised as games of skill, as opposed to games of chance, have been permitted.
The Indian government is in the process of regulating its skill-based gaming sector through new rules tabled in 2023 and 2024.
However, despite the industry’s status as a “sunrise sector” expecting rapid growth, it has struggled under a punishing 28% GST turnover tax, which critics argue have strangled the sector in its crib.
In India since 2019, Google has only permitted DFS and Rummy ads, arguing this is based on applicable case law.
The tech giant said: “Google has no commercial interest in refusing ad revenue unnecessarily and its approach reflects both its decision to mitigate legal risk and its obligation to comply with the law.
“Given the significant confusion regarding the characterisation of games as those of skill or chance, exemplified by Winzo’s own suit before the Hon’ble Delhi High Court requesting a declaration that its games are those of skill, it is neither Google’s intention nor place to decide whether – or which – games are games of skill or games of chance.”
