Google's Extension of Real Money Gaming Pilot Criticized by AIGF

Google has recently announced an indefinite extension of its pilot programme for online real money gaming, sparking controversy among small gaming companies and startups in India. This decision has intensified the ongoing disputes between BigTech firms and emerging digital entities. Initially launched in September 2022, the programme allowed distribution of Daily Fantasy Sports (DFS) and Rummy applications through the Google Play Store, featuring select apps from major players like Dream11 and Games24x7. This move was intended to precede a new policy set to be implemented post-June 30, 2024.

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The extension comes as Google faces challenges in creating a regulatory framework for real money gaming apps in markets like India, which lack a centralized licensing system. A Google spokesperson highlighted the difficulties encountered in expanding support for such apps due to the absence of a uniform licensing framework, emphasizing the need for additional time to ensure the safety of users and fairness to developer partners.

The All India Gaming Federation (AIGF) has voiced its disappointment over Google's decision, criticizing it for being arbitrary and anti-competitive. AIGF CEO Roland Landers pointed out that Google's Play Store dominates over 90% of app distribution in India, giving it significant influence over the mobile market. He accused Google of engaging in gatekeeping and market distortion by not adopting an inclusive policy and favoring large companies over smaller startups.

Landers also stressed the urgent need for ex-ante competition regulation and swift implementation of the Digital Competition Bill to address these concerns. The AIGF had hoped that Google's pilot would eventually expand to include all skill-based Pay to Play games, but this has not been the case.

Google's policies have previously led to conflicts with Indian startups and digital platforms. The Competition Commission of India intervened earlier by ordering Google not to enforce its system of charging a 15-30% fee on in-app payments, leading Google to adjust its fee structure. Additionally, earlier this year, several Indian apps were removed from the Play Store for non-compliance with in-app payment guidelines but were later restored following government intervention.

This ongoing saga between Google and Indian digital entities underscores the complexities of regulating online real money gaming within the country's evolving digital landscape. As stakeholders await further updates from Google, the debate over fair competition and regulatory oversight continues to unfold.