CCI orders probe into Google's anti-competitive practices

The Competition Commission of India (CCI) has initiated a detailed investigation into Google's business practices following a complaint from online gaming company Winzo Games. Winzo alleges that Google has abused its dominant market position to discriminate against gaming companies, including:

Denying Market Access: Restricting the listing of real-money gaming (RMG) apps on the Google Play Store

Favoritism: Preferring certain games over others.

Advertising Restrictions: Imposing limitations on advertising.

Misleading Warnings: Displaying misleading warnings during app downloads.

The CCI has directed its Director General to complete the investigation within 60 days. This move underscores the increasing scrutiny of major tech companies and their impact on the online gaming industry.

WinZO Games welcomes CCI’s probe

WinZO Games, India’s leading interactive entertainment platform, has welcomed the Competition Commission of India’s (CCI) recent order to investigate Google’s alleged anti-competitive practices. This move is a critical step toward fostering fairness and promoting competition within

the digital ecosystem.

“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,” said Saumya Singh Rathore, Co-founder of WinZO Games.

The issue centers on Google’s Play Store policies, which currently permit only fantasy sports (DFS) and rummy apps to operate and advertise within its ecosystem. This selective approach disproportionately benefits a small group of businesses while disadvantaging other gaming companies. For example, 95% of the fantasy sports market is dominated by one player, and 90% of the rummy market by just three players.
“Google's policy has distorted the market, reducing marketing and customer acquisition costs for DFS and rummy businesses by nearly 75%, while leaving others grappling with increased expenses and competitive disadvantages,” Rathore added. “This inequity became even more pronounced following a 400% GST hike. The favored players could absorb the higher tax regime thanks to enhanced margins, but many others were pushed to the brink, unable to compete in an already skewed environment.”

With user acquisition and marketing costs comprising 60-70% of operating expenses for most gaming firms, the impact of Google’s policies has been catastrophic for smaller ventures. The disparity in margins has stifled innovation and led to the collapse of several early-stage companies, ultimately hurting the diversity of India’s gaming sector.

“Fair market conditions are the foundation for innovation and growth,” said Rathore. “As a business, we stand committed to advocating for equitable opportunities that enable creativity and competition to flourish.”

Also Read: CCI orders another probe against Google on complaint filed by NBDA