WinZO Games Welcomes CCI’s Probe Into Google’s Alleged Anti-Competitive Practices

In a landmark decision, the Competition Commission of India (CCI) has ordered an investigation into Google’s alleged anti-competitive practices and misuse of its dominant market position to disadvantage gaming firms. The move comes after complaints from industry players, including WinZO Games, highlighting the discriminatory nature of Google’s policies that purportedly favor specific gaming categories while marginalising others.

Reacting to the CCI’s directive, Saumya Singh Rathore, Co-founder of WinZO Games, termed the decision as a pivotal step toward restoring fairness in the digital ecosystem. She stated, “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.”

The gaming industry has been grappling with Google’s Play Store policies, which, according to WinZO, create a distorted market landscape. WinZO particularly pointed to Google's policy to only include Fantasy and Rummy games for distribution on its platform, as well as an advertising policy that favors these two categories.

“This selective approach has created an uneven playing field, with 95 per cent of the fantasy gaming market controlled by a single player and 90 per cent of the rummy market dominated by three players,” Rathore added. She explained that this preferential treatment has significantly reduced marketing and customer acquisition costs for Fantasy and Rummy gaming businesses, while other gaming firms have been left struggling with disproportionately high expenditures.

The issue has been further exacerbated by the recent Goods and Services Tax (GST) hike on the online gaming sector, which rose by a staggering 400 per cent. Rathore noted that the favored gaming formats could better absorb the higher GST due to their enhanced margins under Google’s policies, leaving smaller or emerging players at a severe disadvantage.

“User acquisition and marketing costs constitute more than 60-70 per cent of a business's expenditures. By offering cheaper distribution channels to a select few, Google has significantly improved the margins of these players, while others have seen no such benefit. This policy has thrown many early-stage ventures out of business and hindered innovation,” she said.

The CCI’s investigation will examine whether Google’s policies breach the principles of fair competition and whether its practices have had an adverse impact on the broader gaming ecosystem. Industry experts and stakeholders have lauded the inquiry as a much-needed step to ensure a level playing field in the rapidly growing digital gaming market.

As India emerges as a global hub for gaming innovation, the CCI's probe is expected to have significant implications for policy frameworks, digital marketplaces, and the competitive dynamics of the industry. WinZO Games and other affected businesses remain hopeful that the investigation will pave the way for equitable opportunities and a more inclusive ecosystem that fosters creativity and growth.