The Competition Commission of India (CCI) has ordered an investigation into Google based on complaints from online gaming platform Winzo. The platform accused the tech giant of exploiting its dominant market position to disadvantage gaming companies, citing discriminatory policies and unfair practices.
Winzo claims that Google’s Play Store policies favor Daily Fantasy Sports (DFS) and Rummy apps, providing them with lower marketing costs and an unfair competitive edge, while sidelining other gaming platforms. The CCI highlighted concerns over selective inclusion, misleading sideloading warnings, and advertising restrictions that allegedly distort market dynamics.
Saumya Singh Rathore, Winzo’s co-founder, welcomed the investigation, stating that monopolistic practices stifle innovation and disrupt fair competition. The probe is expected to conclude within 60 days, potentially shaping India’s digital gaming ecosystem as regulators increase scrutiny on tech giants. Google’s response is awaited as the inquiry progresses.
For example, 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 spending, disproportionately benefiting the margins of these businesses over others. This had a far-reaching impact when the GST was hiked by 400%. The format included in the policy, ie Fantasy & Rummy could absorb the higher GST regime due to improved margins with this distortion, unlike many other players who did not benefit from this policy further distorting the market dynamics and ability to compete in a fair market,” Rathore pointed out
Rathore added “When the margins for these players increased significantly due to cheaper distribution from Google Playstore, the margins for non-DFS and rummy players did not improve proportionately. This policy has a far-reaching impact on disrupting the market and throwing many early-stage ventures out of business. Innovation and creation thrive on fair market conditions, which is what we are fighting for as a business.”
The investigation’s findings may have a big impact on India’s tech and gaming sectors, particularly given how quickly the online gaming business is expanding. As the investigation begins, we eagerly await Google’s answer to this most recent development.
