Google vs WinZo: Gaming Disputes Await MeitY Regulatory Resolution – Brand Wagon News

The ongoing dispute between online gaming company WinZo and Google over the latter’s policy of selectively offering rummy and fantasy games in its Play Store, may find a permanent solution once the ministry of electronics and computing (MeitY) will have provided regulatory clarifications on the real games authorized. money games, analysts and legal experts said.

It has been over a year since MeitY amended the 2021 IT Rules to incorporate online gaming regulations. The regulations were intended to prohibit games involving betting or wagering as an outcome. Through these rules, the government has also defined the structure of the self-regulatory organizations (SROs) which will determine whether or not real money gambling is permitted in the country. However, the same is yet to be implemented.

One of the reasons given by Google in its arguments for not allowing other categories of real money games is the potential legal risks arising from conflicting central and state regulations and the lack of broader regulations in the country. . Experts, however, did not find Google’s arguments about selecting a few real money game formats in the pilot and extending the pilot indefinitely convincing.

“This justification cannot excuse its (Google) selective approach, which disproportionately favors certain genres of games. MeitY’s lack of regulatory clarity regarding permitted RMG (real money gaming) activities does contribute to a broader problem, but Google’s dominant position imposes an obligation to maintain fairness and transparency in its policies. said Jidesh Kumar, Managing Partner of King Stubb. & Kasiva, lawyers and lawyers.

According to Kumar, a balanced resolution would require MeitY to urgently provide clear guidelines for the wearable sector, while ensuring that Google implements an inclusive policy framework that grants equality walk access to all compliant gaming applications.

In fact, the Competition Commission of India (CCI) recognized that the regulatory framework, once established, should remove ambiguities.

In September 2022, Google launched a pilot program to test hosting only two types of real money games on its Play Store: Daily Fantasy. Sporty (DFS) and Rummy in India for a period of one year. The pilot, however, never ended. The same gave an edge to companies like Zupee, MPL, Dream 11, which saw significant growth in user downloads over other skill-based gaming apps, which were not allowed . WinZo claims this eliminates a level playing field and creates a false perception of legitimizing DFS and rummy over all other games of skill.

“While the pilot program itself would not be considered discriminatory, a selective approach without a defined period or stopgap could be perceived as discriminatory, limiting market access for other game developers and potentially constituting an abuse of Google’s dominant position in the distribution space,” said Kinjal Champaneria, partner at Solomon & Co.

Champaneria said MeitY’s clarifications on RMGs permitted under SRBs would definitely help resolve the issue at hand.

In its response, Google said that the Supreme Court of India (as well as other courts) have recognized DFS and Rummy as primarily games of skill and, therefore, there is legal certainty attached DFS and rummy which offers Google additional comfort in terms of skill games. a risk assessment perspective.

Experts, however, countered this argument by saying that these gaming formats have been taken to the Supreme Court on the grounds that they are not skill-based but involve gambling. After that, the Supreme Court recognized them as a game of skill. However, since the beginning, no one has questioned other real money gaming formats like Chess, Ludo, etc. There is therefore no question of risk emanating from these other formats.

Vidushpat Singhania, Managing Partner at Krida Legal, said: “Allowing all RMG apps to be listed on the Google Play Store could very well result in some chance-based RMG apps being listed on the Google Play Store, which will would be similar to the Google Play Store. promote gambling in India, thereby exposing Google to additional legal risks.”

According to Singhania, the lack of clarity (from MeitY) has caused confusion in the gaming industry. industry regarding the type of real money games that can be offered to users.

Shiju PV, senior partner at IndiaLaw LLP, said, “The legal and regulatory framework for betting and gambling is quite vague and differs from state to state. Even though games that require skill rather than chance are permitted in the country, the line that differentiates gambling from gambling is very thin. It is therefore important to remove these regulatory ambiguities before taking action against intermediaries.

In its communication, WinZo also questioned Google’s policy of displaying a disclaimer/warning when gaming apps are downloaded from websites. The company also alleged that Google restricted its advertising policy by only allowing DFS and Rummy app advertisers to host advertisements using Google Ads.

Prateek Jain, Associate Director-Startup and Alliances, Alliance of Digital India Foundation (ADIF) said: “We are confident that the regulator will take appropriate steps to ensure that Winzo and other digital companies in India enjoy a level playing field in a landscape currently marred by the monopolistic practices of big tech companies” .

The CCI has currently launched an investigation against Google for alleged abuse of its dominant position in the real money gaming ecosystem.

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