 "India's Competition Commission starts new probe into Google's app store policies following Winzo’s complaint")
The Competition Commission of India (CCI) has launched a fresh investigation into Google following a complaint from online gaming company Winzo. The probe centres around allegations that Google’s app store policies breach antitrust regulations and unfairly restrict the operations of gaming apps offering real money games.
The CCI has directed its director general to complete the investigation and submit a consolidated report within 60 days. The order suggests that Google’s practices may violate multiple provisions under Section 4 of the Competition Act, which addresses the abuse of a dominant market position.
Allegations of restrictive practices
Winzo’s complaint claims that Google, through its Play Store, imposes unreasonable terms on app developers via its Developer Distribution Agreement and Developer Program Policies. These policies allegedly create a one-sided relationship, forcing developers to comply with terms that limit their ability to operate fairly in the market.
The crux of the issue lies in Google’s restriction of apps offering real money games from being hosted on the Play Store. Winzo asserts that this policy forces gaming companies like itself to rely on sideloading—a process where users download apps directly from the company’s website rather than through the Play Store. Winzo claims this sideloading process is hampered by warnings displayed on Android devices, which it alleges are misleading, damaging its reputation and discouraging potential users.
Google’s alleged abuse of dominance
The CCI order highlights Winzo’s argument that Google’s policies represent an abuse of its dominant position in the app distribution ecosystem. By restricting the hosting of real money gaming apps, Google allegedly stifles competition and hampers the growth of this segment in India. The warnings displayed during sideloading, which Winzo describes as baseless and illegal, further add to the challenges faced by gaming companies.
Winzo argues that these actions not only mislead users but also tarnish its market reputation and result in significant business losses. The gaming company views these practices as a deliberate attempt by Google to limit competition while consolidating its own control over app distribution on Android devices.
A broader pattern of regulatory scrutiny
This investigation is not Google’s first brush with India’s competition watchdog. The company has faced several probes over alleged anti-competitive practices in the past, including those related to Android’s dominance in the mobile operating system market. The fresh inquiry adds to Google’s regulatory troubles, not just in India but globally, as antitrust authorities examine its policies and business practices.
The outcome of this investigation could have wide-reaching implications for app developers, particularly those in the gaming industry, as they navigate the challenges posed by dominant tech platforms. With the CCI’s 60-day timeline for a report, all eyes are now on the regulator to determine whether Google’s policies warrant corrective action.
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