The Competition Commission of India has ordered an investigation into Google after gaming company Winzo alleged discriminatory practices by the tech giant with regard to the display of ads and market access.
In its complaint, Winzo Games had accused Google of extending preferential treatment to other online casual gaming platforms, Zupee and MPL. Winzo had stated that ads by those companies are being allowed, while its ads are blocked. The CCI has noted that this raises concerns of potential discriminatory practices or selective enforcement of Google’s policies in violation of Section 4(2)(a)(i) of the Competition Act, 2002, and warrants an investigation.
The CCI said it is of the prima facie view that the restrictions imposed by Google on advertising through its platform restrict the provision of real money gaming apps other than fantasy sports and rummy, and that is in violation of Section 4(2)(b) of the Competition Act.
Given that Google is also denying ads to Winzo, it is limiting market visibility and access and is also therefore in violation of Section 4(2)(c) of the Act.
The CCI, however, did not give weight to Winzo’s concerns on Google’s keyword bidding policy as well as sideloading.
“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 a detailed investigation… The Commission also directs the Director General to complete the investigation and submit a consolidated investigation report within a period of 60 days from the date of receipt of this order,” it said in an order dated Nov. 28.
“The CCI’s order is a step toward restoring fairness in the digital ecosystem…Google Play Store’s policy to include only fantasy and rummy and ads policy to allow only fantasy and rummy businesses to advertise on the internet effectively distorts the market,” Winzo Co-Founder Saumya Singh Rathore said in a statement after CCI’s order.
“95% of the fantasy market is owned by a single player, and 90% of the rummy market is owned by three players. The policy caused the marketing and customer acquisition costs for the selected games to drop to a quarter of the previous spends, disproportionately benefiting the margins of these businesses over others,” she added.
Earlier this month, the Commission imposed a penalty of Rs 213 crore on Meta Platforms Inc., the parent entity of WhatsApp, for “abusing its dominant position” in the implementation of the messaging platform’s privacy policy in 2021.