CCI orders probe against Google, affiliates for unfair business in gaming apps' listing on Play Store

Fair trade regulator CCI on Thursday ordered a probe against Google and its affiliates for alleged unfair business practices with respect to listing of real money gaming apps on Play Store.

While passing the order, CCI said the "the Commission directs the Director General ('DG') to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act".

The Commission also directed the DG to complete the investigation and submit a consolidated report within 60 days. The probe follows a complaint by Winzo Games, accusing Google of abusing its dominant position and unfairly favouring select gaming categories, thereby distorting competition.

In its 24-page order, the regulator noted that the selective inclusion of DFS and Rummy apps gives them an undue competitive advantage.

"Direct access to end-users via the dominant Play Store provides a significant edge to DFS and Rummy apps, potentially disadvantaging other RMG applications," the Commission said in its order.

CCI also flagged concerns regarding Google's sideloading warnings displayed when users attempt to download RMG apps. These warnings, Winzo claimed, tarnish its reputation and discourage potential users from accessing its app.

Winzo also alleged that warnings on sideloading and payments were standard security measures aimed at safeguarding users. The regulator also found that Google's justifications for its pilot programme and advertising policies were inconsistent and ambiguous.

"The long duration of Google's pilot programme, risks perpetuating the advantages conferred upon selected participants, such as DFS and Rummy apps. "This temporal extension amplifies the anti-competitive effects by ensuring these apps continue to enjoy preferential access and visibility, which other competitors are denied," the CCI noted.

The regulator also pointed out that Google's dominance in the Android ecosystem made it imperative to assess its policies for anti-competitive outcomes. The Play Store, being pre-installed on all Android devices, is deemed a "must-have" platform for app developers.

The exclusion of non-DFS and non-Rummy RMG apps from the Play Store amounts to a denial of market access, the Commission said. While ordering its Director General (DG) to investigate the matter within 60 days, the CCI clarified that its observations were prima facie and not a final judgment.