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Tag: CCI

  • Delhi HC Notifies Zomato and CCI of NRAI’s Exclusion in Antitrust Investigation

    As part of an ongoing antitrust probe against the foodtech giant, the Delhi High Court (HC) has sent notice to Zomato and the Competition Commission of India (CCI).

    According to reports, the HC made the rulings at a hearing on a plea against the National Restaurant Association of India’s (NRAI) exclusion from the confidential ring during the investigation. The HC was also urged by the NRAI to examine the company’s confidentiality claims.

    What is Confidential Ring?

    The confidential ring was first introduced in 2022 and gives parties access to private documents or information about other parties in an inquiry so they can better defend themselves. The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Exclusion from the ring inhibits a petitioner’s capacity to make a defence.

    It is important to remember that in October 2024, the competition watchdog removed the NRAI from the ring after it had been first included. At the hearing on 21 April, Zomato’s lawyer allegedly argued that the NRAI should not be included in the confidential ring because it included companies that are competitors of the foodtech juggernaut.

    Issue to be Further Heard on 23 April

    The NRAI’s claim against Zomato was combined with a similar suit against Swiggy by the High Court bench, which was presided over by Justice Sachin Datta.

    In November of last year, the HC also sent out a notice on the Swiggy case. At its upcoming hearing on April 23, the HC will now consider both cases together. This news broke on the same day that the CCI upheld Zomato’s platform fees and delivery costs, ruling that they do not constitute an abuse of control.

    The most recent development occurs five months after a report stated both Zomato and rival Swiggy were found guilty internally by the competition commission. According to CCI, both businesses have limited market competition by favouring particular restaurant partners, in violation of competition regulations.

    CCI Putting a Strict Scanner of Zomato and Swiggy

    After NRAI filed a complaint in 2021, the CCI conducted an examination involving the two companies for over two years before issuing its antitrust decision. In its lawsuit, the industry association had said that the foodtech platforms participated in anticompetitive practices such as deep-discounting methods, bundling of services, exorbitant fees, delayed payment cycles and imposition of one-sided terms.

    As part of the confidential ring, the watchdog had already granted the NRAI restricted access to the antitrust report in April 2024. In the Karnataka High Court (HC), Zomato and Swiggy later contested the CCI’s order, claiming that the disclosures may cause the two businesses “irreparable commercial harm” even in the presence of confidentiality protections.

    The Karnataka High Court then ordered the watchdog to re-examine its ruling in June 2024, which cleared the path for the October 2024 verdict that barred the NRAI from the confidentiality ring. The restaurant body moved the Delhi HC as a result of this development.

  • The Distributors’ Body Approaches CCI against Quick Commerce Players Due to Unfair Pricing

    According to reports, the Competition Commission of India (CCI) has received a petition from the All India Consumer Products Distributors Federation (AICPDF) accusing Blinkit, Zepto, and Swiggy Instamart of monopolising the market and charging unjust prices. According to a media report, AICPDF President Dhairyashil Patil made the petition. According to the petition, hyperlocal delivery and speedy trade have grown in popularity in recent years. Fast and effective delivery services are defined by the term “quick commerce.” Products are typically delivered in a matter of minutes. The group also charged that these rapid commerce companies were influencing market competition by offering steep discounts and engaging in exclusive supply and distribution contracts. According to the petition, these activities have a detrimental effect on almost 10 million offline mom-and-pop shops nationwide.

    Not a New Issue

    The authority asked Piyush Goyal, the union minister of commerce, in a letter last year to closely examine the fast commerce giants’ explosive expansion. In order to safeguard small business owners, it also asked the government to control the rapid commerce area. The AICPDF complaint was later forwarded to the CCI by the Department for Promotion of Industry and Internal Trade (DPIIT). The authorities’ persistent efforts to suppress quick commerce companies coincide with Blinkit, Instamart, and Zepto’s rapid growth and the loss of traditional retail establishments’ clientele. The three main businesses are competing for market share in the nation’s fast-food delivery, grocery, and home basics sectors, as well as 10-minute ambulance services. E-commerce giants like Amazon and Flipkart are working to increase their product offerings in this market as a result of this influence.

    Voices Rising Against 10 Minutes Delivery Game

    Concerns about the 10-minute delivery trend are still growing. According to a report last month, the National Restaurant Association of India (NRAI) was thinking of bringing a CCI action against Zomato and Swiggy in order to prevent their 10-minute meal delivery standalone apps, Bistro and Snacc, from being launched. Furthermore, according to a broking study by ICICI Securities, although these businesses continue to use discounts to draw clients, the item-level discounting strategy has lost some of its allure between November 2024 and January 2025. It is important to remember that Zepto, Instamart, and Blinkit together generated over $1 billion in revenue in FY24.

    Rapid Commerce Conflict

    The rapid commerce industry has evolved into a high-cash-burn sector, with companies allocating billions towards expansion and client acquisition. Industry estimates indicate that the aggregate monthly cash burn of rapid commerce entities, including new entrants, ranges between INR 1,300 and 1,500 crore—more than double in recent months.

    Despite nearing operational breakeven in Q2 FY25, Blinkit’s losses escalated in Q3 FY25, with operating losses rising to INR 103 crore from INR 8 crore in the preceding quarter. Swiggy reported a net loss of INR 799 crore, while Instamart had an adjusted EBITDA loss of INR 578 crore in Q3, compared to INR 358 crore in Q2. Zomato’s ability to continue investing in Blinkit stems from its financial stability. In November 2024, Zomato secured INR 8,500 crore in a qualified institutional placement (QIP) to enhance its balance sheet and finance its rapid commerce operations. As of December 31, 2024, Zomato possessed cash reserves amounting to INR 19,235 crore, providing adequate liquidity to support Blinkit’s expansion.

  • Microsoft’s Antitrust Allegations are Dismissed by CCI

    An antitrust action against Microsoft for including its antivirus software with the Windows 10 operating system (OS) has been dropped by the Competition Commission of India (CCI). According to the regulator, there is no proof that Microsoft has imposed any limitations or requirements on customers’ usage of the antivirus program Microsoft Defender. According to the ruling, customers are allowed to install and utilise whatever third-party antivirus software they like, free from contractual or technical restrictions. The Commission does not believe that Microsoft has violated any of the provisions of section 4 of the Competition Act. Section 4 of the Act forbids companies from abusing their position as the market leader.

    What Filed Complaint States?

    When Microsoft debuted its Windows 10 operating system in 2015, the informant claimed in a complaint against the company that Microsoft Defender was pre-installed. According to the complaint, third-party developers may have their software pre-installed through agreements, but not pre-activated, because Windows devices are only permitted to have one default antivirus app. For an antivirus program to function, including to carry out automated background system scans—a key characteristic that sets antivirus software apart—it must be set as the default. It went on to say that the default antivirus program has access to crucial functions like automatic updates, real-time protection, and on-demand scanning, but third-party apps without default status cannot. Because of their incapacity to perform at their best, third-party antivirus programs may find it difficult to compete and may eventually be removed from devices.

    Response from Microsoft

    Microsoft defended itself by claiming that Microsoft Defender is a fundamental security component built into the Windows OS that offers real-time protection rather than a stand-alone offering. Microsoft underlined that Defender comes pre-installed on Windows OS and is not advertised or sold separately, so consumers do not have to pay more for it. Furthermore, Microsoft asserted that it does not hold a dominating position in the relevant market and that there is no compelling element requiring Windows customers to use Microsoft Defender as their only or primary antivirus program.

    Who is CCI?

    In India, the CCI serves as the competition watchdog. Although the Commission was created in 2003, it wasn’t until 2009 that it was completely operational. By actively engaging with all stakeholders, the government, and international jurisdiction, it seeks to create a competitive environment in the Indian economy. Preventing anti-competitive behaviour, fostering and maintaining market competition, safeguarding consumer interests, and promoting freedom of trade are the goals of the Commission.

  • To Obtain Additional 10% Stake in Tata Play, Tata Sons Seeking Approval from CCI

    According to reports, Tata Sons has applied for permission from the Competition Commission of India (CCI) to purchase an additional 10% of DTH provider Tata Play from Temasek Holdings, a Singaporean sovereign wealth fund. According to multiple sources, which cite a notification sent to the CCI earlier this week, the proposed deal is the purchase of a 10% stake in Tata Play by Tata Sons from Baytree Investments (Mauritius) Pte Ltd. It should be noted that Temasek Holdings owns Baytree Investments (Mauritius).

    Players Fighting Fierce Battle in Digital TV Sector

    In April 2024, when the firm was valued at $1 billion, Temasek Holdings Pte sold its 10% share in Tata Play for INR 835 Cr ($100 million), giving Tata Sons a 70% stake in the company today. Walt Disney owns the remaining 30%, but after simplifying its portfolio and combining its media businesses with Reliance Jio in India, the company has been looking to leave the TV distribution industry. According to earlier reports, telecom giant Bharti Airtel was in advanced negotiations with the Tata Group in October of last year to buy Tata Play. This move would have strengthened Airtel’s position in the faltering digital TV market and improved its bundled offerings, ultimately increasing non-mobile revenues through convergence.

    TATA Expanding its Network in Entertainment Space

    The aforementioned development happened one month after it was reported that Tata Sons intended to invest in its digital division, Tata Digital, by the middle of 2025. A few weeks ago, the competition authority granted approval to Tata Electronics Private Limited’s (TEPL) plan to purchase the majority of Pegatron Technology India. The CCI also gave its approval to Tata Electronics’ proposal to give Pegatron India full ownership of TEL Components, a TEPL subsidiary.

    One of the main content distribution platforms in India is Tata Play (previously Tata Sky), which offers Pay TV and over-the-top (OTT) services via its Tata Play Binge platform. The parties (Tata Sons and Tata Play) claimed in their submission to the CCI for evaluation of the proposed transaction that it would not have a negative impact on competition in any conceivable relevant markets.

    As a result, the definition of the relevant market may stay open, and the CCI may evaluate the deal in light of India’s wired broadband internet services as well as the complementary relationship between web-based services like Tata Play Binge and internet access offered by Tata Sons through its affiliates, the statement continued. Based on Tata Sons’ application to the CCI, is it feasible that the company has chosen to keep the internet piece of Tata Play while letting go of the distribution platform operator’s video services section.

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    Dixon Technologies plans to build a $3 billion display fabrication plant in India, boosting local manufacturing and self-reliance in the tech sector.
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  • The government Releases Draft Guidelines to Increase the Accountability of E-commerce

    In order to safeguard customers against dishonest activities in the quickly growing online retail industry, the Centre has put up draft guidelines for e-commerce platforms that need self-regulation measures. Under the direction of the Ministry of Food and Consumer Affairs, the Bureau of Indian Standards (BIS) created the draft rules, titled “E-commerce Principles and Guidelines for Self-Governance,” and requested feedback from interested parties by February 15.

    According to the draft, the growth of e-commerce has brought forth new difficulties, especially with regard to consumer trust and protection. In this context, it is impossible to overstate the significance of effective and transparent regulations and standards for self-governance in e-commerce. For e-commerce operations, the framework presents three-phase principles that address the pre-transaction, contract generation, and post-transaction phases. Prerequisites for the transaction Businesses should, therefore, perform comprehensive KYC on their business partners, particularly third-party suppliers. In order to assist customers in evaluating the features and usefulness of products, the draft also requires comprehensive product listings that contain the title, identification number, seller contact information, photo, and videos.

    Bringing More Transparency in the Sector

    According to the draft, all e-commerce businesses must document customer consent, permit transaction review, and uphold clear cancellation, return, and refund policies in order to preserve openness. All e-commerce platforms must offer a variety of payment methods, such as bank transfers, e-wallets, mobile payments, and credit/debit cards, in order to ensure safe and equitable payment procedures. Platforms for imported items must prominently disclose information about the importer, packer, and vendor. Platforms are required to document customer permission throughout contract formation, permit transaction scrutiny, and uphold clear cancellation, return, and refund rules.

    Additionally, the proposed regulations require safe payments through the use of two-factor authentication and encryption in payment systems. Additionally, cash-on-delivery needs to be handled according to customer preferences. After the transaction The proposal states that the platform must have distinct policies for counterfeit goods and clearly define the timeframes for exchanges, refunds, and replacements. Additionally, the plan suggests banning the sale of things that are prohibited.

    Giving More Clarity to Seller and Customers

    Along with seller onboarding, the e-commerce company must compile and distribute a list of prohibited products. In addition to the aforementioned recommendations, the document also includes general guidelines, such as conducting business fairly and without giving any seller on the platform preferential treatment. Customers should be made aware of any promotional agreements the e-commerce company may have with brands.

    Amazon and Flipkart, two of the biggest online retailers, are currently at odds with the Competition Commission of India (CCI), which has accused them of engaging in anti-competitive behaviour. Furthermore, both businesses have been bypassing laws by using proxy vendors to manage inventories and monitor listings on their platforms, according to the Confederation of All India Traders (CAIT). Additionally, it said that whereas independent traders are forced to pay much higher costs, which distort the competitive landscape, these sellers get lower fees and access to exclusive product launches.

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    Dixon Technologies plans to build a $3 billion display fabrication plant in India, boosting local manufacturing and self-reliance in the tech sector.
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  • Regarding Zomato and Swiggy’s 10-minute Delivery Apps, NRAI Plans to Approach CCI

    The National Restaurant Association of India (NRAI) is expected to petition the Competition Commission of India (CCI) for intervention about the launch of the 10-minute meal delivery standalone apps, Bistro and Snacc, adding to the problems caused by Zomato and Swiggy’s anti-competitive conduct. According to a media story that quotes Sagar Daryani, the founder and CEO of Wow Momo, as well as the president of NRAI, NRAI is seriously considering pursuing legal action against both businesses. Daryani further stated that NRAI is not comfortable with Zomato and Swiggy selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for speedy meal delivery, as well as with the two companies allegedly hiding consumer data.

     Daryani further emphasised that although these platforms have access to important customer data, they do not provide restaurant partners with this information. All of our data is at their disposal, yet they choose not to share it with us. There is total consumer masking for us. “Whether it’s data from a tea brand, biryani, or momo, we have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps,” the journal said, quoting Daryani. The NRAI is concerned that Zomato and Swiggy may use this information to entice users to buy their goods via these apps.

    The startup led by Sriharsha Majety launched a new app earlier this week called “SNACC,” which aims to provide a 15-minute meal delivery service in a few areas of Bengaluru. Zomato then introduced its 15-minute meal delivery service. It is important to remember that in addition to being outspoken about its concerns about Zomato and Swiggy‘s business practices, the NRAI is also pursuing two lawsuits against the companies, claiming they have engaged in anti-competitive behaviour. In an effort to create a level playing field and safeguard eateries, delivery partners, and customers from potentially exploitative platform activities, NRAI requested just a day ago that the government provide industry status to the food services sector.

    The food delivery giants were accused by the association of anticompetitive activities in the past, including service bundling, excessive commissions, delayed payment cycles, and the imposition of one-sided terms. According to reports, the CCI discovered a few months ago that foodtech giants Swiggy and Zomato had violated competition regulations by favouring certain eateries through their relationships.

    Why there is a Need of Strict Guidelines

    Based on a complaint submitted by the National Restaurant Association of India (NRAI) in 2021, the CCI had previously investigated both businesses in 2022. This is the main reason why many consumer service and e-commerce businesses are either trying to enter or are already in the rapid commerce market. This trend reflects the shifting preferences of consumers, who now want their purchases delivered quickly. Amazon, Flipkart, JioMart from Reliance, and Tata BBNow are just a few of the companies that have recently entered the market. Better anti-competition policies and procedures are therefore required in order to guarantee these restaurant partners—particularly the smaller ones—fair play.

    Swiggy to Launch Instamart as a Stand-Alone App
    Swiggy plans to release Instamart as a stand-alone app, focusing on enhancing user experience and streamlining grocery delivery services.
    StartupTalkyNitin Konde

  • InstaAstro’s Abuse of Dominance Allegation is Dismissed by CCI

    The Competition Commission of India has denied InstaAstro’s petition, which alleged that Astrotalk, an online astrology platform, had abused its dominance. The competition commission, in an order, observed that the “informant” (rival platform InstaAstro) failed to provide data or statistics to substantiate its claims that Astrotalk was abusing its dominance. In addition to dismissing the complaint, the CCI asserted that Astrotalk is subject to competitive constraints due to the existence of numerous well-established competitors in the market. The bench, which consisted of Ravneet Kaur, the chairperson of the Competition Commission of India (CCI), and members Anil Agrawal, Shweta Kakkad, and Deepak Anurag, observed that the mere citation of media reports is insufficient to establish antitrust allegations.

    In its complaint, InstaAstro, a competitor platform, claimed that Astrotalk was engaging in practices that were purportedly detrimental to market competition. The complainant also alleged that Astrotalk was recruiting its consultant, who was also “upskilled” by InstaAstro, by offering a higher remuneration of up to INR 5 lakh per month. According to InstaAstro, this resulted in financial losses for the company.

    Astrotalk Spreading False News to Attract Consultants

    InstaAstro also asserted that Astrotalk executed restrictive agreements with the consultants who were taken away, which forbade them from re-engaging with InstaAstro or other competitors. The complaint also claimed that Astrotalk disseminated “false news” in order to “incite” consultants from competing companies to terminate their contracts and depart their organisations.  InstaAstro also referenced Astrotalk CEO Puneet Gupta’s statements regarding social media platforms, asserting that the startup possessed 80% of the market. InstaAstro asserted that this implied an abuse of dominance.  The order further alleges that Astrotalk is violating the provisions of Section 4 of the Act by poaching astrology consultants and offering them greater remuneration, thereby reducing competition in the relevant market. 

    Consequently, InstaAstro encouraged the CCI to impose a penalty on Astrotalk and to provide guidance to the latter to cease engaging in anti-competitive practices. It also sought compensation for itself and other participants in the segment that were affected by the alleged anticompetitive practices of Astrotalk. It also requested interim relief in the form of directives to Astrotalk to cease poaching consultants and refrain from engaging into any agreements that would have a detrimental impact on competition. The CCI dismissed the complaint and determined that there was no prima facie case against Astrotalk for violating Sections 3 and 4 of the Competition Act after hearing the case. Consequently, the matter should be immediately resolved in accordance with Section 26(2) of the Act. As a result, the order stated that no case for the grant of relief(s) as sought under Section 33 of the Act has arisen, and the same is also rejected.

    CCI Dismissed the Poaching Allegation as well

    The CCI stated that the consultants are at liberty to render their services to any entity at their discretion in response to allegations of recruitment. Nevertheless, it stated that these types of cases do not fall within the scope of Sections 3 and 4, which is the section under which InstaAstro filed the complaint. The Commission also stated that the informant’s failure to submit any data or statistics impeded its capacity to exhibit any abuse of market power by Astrotalk. Regarding the allegations of 80% market share, the CCI stated that the commission has taken note of the informant’s assertion that Astrotalk’s dominance is solely based on the media pronouncements of its CEO, who claims to hold 80% of the market. The Commission is of the opinion that the dominance of any entity cannot be exclusively determined by media statements, which are frequently intended to enhance the entity’s market position. As a result, Astrotalk’s dominance in the pertinent market is not established.

    CCI Sets Up Confidentiality Ring for Apple Antitrust Probe
    The CCI establishes a confidentiality ring to expedite its antitrust investigation into Apple, ensuring secure handling of sensitive information during the probe.
    StartupTalkyNitin Konde

  • CCI Establishes a Confidentiality Ring to Accelerate the Apple Antitrust Investigation

    Ahead of the case’s final hearing next year, the Competition Commission of India (CCI) has reportedly decided to put the huge tech giant behind a “confidentiality ring” as part of its stepped-up antitrust investigation into Apple. According to sources cited by a media report, the watchdog consented to establish the “confidentiality ring” last week. Before the CCI begins the lawsuit’s final hearing, the action will allow the giant tech firm to examine sensitive information related to the antitrust case. The regime, which was implemented in 2022, gives parties access to private data or records pertaining to other parties in an investigation so they can better defend themselves. The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Apple and other chosen parties have access to sensitive, private information under the secrecy ring.

    Options Available for Apple

    According to media reports, Apple may be asked to respond to the CCI probe report after information is made available, at which point the hearing will start. In this situation, Apple will have four weeks to provide the information that the watchdog is requesting. The article also stated that Apple and a few other carefully chosen linked businesses will have the opportunity to physically confirm the files and information in the investigative report, and they may even receive a certified copy of those files.

    The move follows rumours that the CCI denied Apple’s plea to halt an antitrust investigation that exposed the massive tech giant’s violations of the nation’s competition laws, which circulated a month ago. Apple had argued in its petition that the non-profit Together We Fight Society (TWFS), the primary complainant, had disregarded the watchdog’s orders to remove previous probe reports. In August, the CCI ordered an extraordinary recall of investigative reports after Apple alleged that the watchdog had given over trade secrets to rivals, including Match, the owner of Tinder, as part of the antitrust inquiry.

    The Commission then instructed the parties to destroy all copies and return the reports. It then released fresh reports. Allegations that Apple was abusing its dominating position in the app marketplace and pressuring developers to utilise its in-app payments system prompted the watchdog to begin its probe against the corporation in 2021.

    Big Tech Companies Face Strict Scanning by CCI

    According to reports earlier this year, the Cupertino-based multinational tech company was found guilty of unfair trading practices and violating competition laws by the CCI internally. It is important to note that the CCI is targeting other large IT companies in addition to Apple. The authority levied two distinct fines against Google in 2022, amounting to more than INR 2,200 Cr, for misusing its market dominance in Android smartphones and for violating Play Store regulations. The social media giant Meta was also fined INR 213.14 Cr by the CCI in November of this year for abusing its power in relation to the 2021 WhatsApp privacy policy modification. Amazon and Walmart-owned Flipkart were later found to have violated competition regulations by favouring specific sellers on their platforms, according to an internal investigation by the Commission.

    Apple’s Request to Stop Antitrust Probe Denied by CCI
    The CCI has denied Apple’s request to halt an antitrust investigation, ensuring the probe into its market practices continues uninterrupted.
    StartupTalkyNitin Konde

  • The US-Based KKR’s Plan to Purchase a Share in Rebel Foods has been Approved by CCI

    The application by private equity (PE) giant KKR to purchase a share in cloud kitchen upstart Rebel Foods has been approved by the Competition Commission of India (CCI). The CCI announced that Royce Asia Holdings, a subsidiary of KKR, will purchase an undisclosed quantity of the startup’s shares and compulsorily convertible preference shares (CCPS) through a secondary transaction.

    Therefore, since the proposed transaction won’t have a negative impact on competition in India, the relevant market need not be specified and can remain open in the absence of any horizontally overlapping and/or vertically complementary commercial operations of the parties in India. According to a statement from the CCI, the proposed transaction is being submitted through the green channel process. If a transaction does not pose a significant risk of having a negative impact on competition, it is considered permitted via the green channel method after being communicated to the CCI.

    Funds are Expected to be Raised at a Valuation of $800 Mn to $860 Mn

    This development occurs a few days after it was reported that KKR was prepared to purchase shares from Rebel Foods‘ current investors, such as Peak XV Partners and Coatue, for between $50 million and $75 million through a secondary sale. The funds are expected to be raised at a valuation of $800 million to $860 million, according to various media reports. In its Series G round, which was headed by Temasek and included current backer Evolvence, Rebel Foods raised an incredible $210 million last week. There were both main and secondary deals in the round. Rebel Foods was established in 2011 by Jaydeep Barman and Kallol Banerjee. It runs a number of quick-service restaurant (QSR) brands, including Wendy’s, Behrouz Biryani, Ovenstory Pizza, The Good Bowl, and SLAY Coffee.

    Funding Till Date And Financial Report Card

    With support from companies like Lightbox and Evolvence, among others, the firm has secured over $773 million in capital so far. According to reports from October of this year, the cloud kitchen unicorn planned to list on the Indian stock exchanges within the next 12 to 18 months. In terms of finances, Rebel Foods was able to reduce its net loss from INR 656.5 Cr in the previous fiscal year to INR 378.2 Cr in the fiscal year 2023–24 (FY24), a 42% reduction. From INR 1,195.2 Cr in FY23 to INR 1,420.2 Cr, operating revenue increased by 19%.

    Among its rivals are Tiger Global-funded Eatclub and Curefoods, which is supported by Binny Bansal. Temasek Holdings, a sovereign wealth fund based in Singapore, was approved by CCI last month to purchase a share in Rebel Foods.

    CCI Orders Investigation into Google Following Winzo Complaint
    The CCI orders an investigation into Google after gaming company Winzo files a complaint, raising concerns over competitive practices in India.
    StartupTalkyNitin Konde

  • After Gaming Business Winzo Filed a Complaint, CCI Orderes an Investigation into Google

    In response to a complaint by Winzo Games alleging unfair business practices regarding the listing of real money gaming applications on the Play Store, the Competition Commission of India (CCI) on 28 November ordered a thorough probe into Google.

     In its ruling, the CCI determined that Google had abused its dominant position and was therefore prima facie in breach of the Competition Act’s antitrust prohibitions. Additionally, within 60 days after receiving this decision, the Commission instructs the DG to finish the investigation and submit a consolidated investigative report.

    Based on a comprehensive analysis of the case’s facts and circumstances, the Commission believes that Google may be in breach of Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Act, as specified in this judgement. This necessitates a thorough inquiry, the order said.

    Why Winzo Took Matters to Court?

    In its complaint, Winzo Games, the case’s informant, claimed that Google both prevents its game from being published on the Play Store and shows malware alerts to users who try to download it from the website. Winzo said that these cautions damage its brand and deter prospective customers from using its service.

     In 2022, Winzo launched a lawsuit against the Play Store when Google modified its gaming guidelines. Google began permitting rummy and daily fantasy games on the Play Store in 2022, but many skill-based gaming sites were left out. In its ruling, the antitrust watchdog pointed out that Google’s alleged preferential treatment of online casual gaming platforms like Zupee and MPL raises questions about possible discriminatory practices or selective enforcement of Google’s policies, which is against Section 4(2)(a)(i) of the Act.

    According to CCI, any unjust limitations Google places on advertisers are probably going to have anti-competitive effects and hurt their capacity to compete in the market.

     In response to the accusations, Google told CCI that its ads policy is transparent and consistently applied. In its statement to CCI, Google stated that it had no business incentive in rejecting ad revenue needlessly and that its strategy reflects both its choice to reduce legal risk and its duty to abide by the law.

    Google is Not Providing Valid Justification

    In its complaint, Winzo also claimed that Google had not offered a convincing explanation for limiting the number of RMG (real money gaming) apps to only two categories and that its responses to this claim had been inconsistent, unsupported, and predicated on conjecture and unconfirmed market data.

    The Play Store is considered a “must-have” platform for app developers because it comes pre-installed on all Android devices. According to the Commission, excluding non-DFS and non-Rummy RMG apps from the Play Store is equivalent to denying them access to the market. 

    According to CCI, Google essentially establishes a two-tier market by giving preferential treatment to specific app categories, giving some developers better access and visibility while discriminating against and putting others at a competitive disadvantage. While directing a thorough inquiry, the fair trade regulator stated that nothing in the decision would amount to a final judgement on the case’s merits. The DG will carry out the probe “without being influenced in any way whatsoever by the observations made herein,” it stated. 

    WinZo Games co-founder Saumya Singh Rathore stated in a statement following the CCI order that the order is a step in the right direction towards re-establishing equity in the digital economy. A strong industry depends on competition and innovation, both of which are suppressed by monopolistic methods. This choice is an important step towards guaranteeing fair chances for all participants, encouraging creativity, and establishing a level playing field that is advantageous to companies and customers alike.

    CCI Approves Temasek’s Stake Acquisition in Rebel Foods
    Temasek Holdings receives CCI approval to acquire a stake in Rebel Foods, paving the way for strategic investment in the cloud kitchen leader.
    StartupTalkyNitin Konde