Google proposes changes to Play Store and ad policies in India

New Delhi: Google has proposed significant changes to its Play Store and advertising policies in India, including broader support for real-money gaming (RMG) apps, as part of a commitment proposal submitted to the Competition Commission of India (CCI), according to a report. 

The move follows an antitrust complaint by online gaming platform WinZO, and forms part of Google’s ongoing regulatory challenges in the country.

According to the commitment proposal, the company seeks to replace its existing pilot programme with a more inclusive policy that would allow all real-money games, provided developers declare them as permissible under Indian law and furnish third-party validation that the games are based on skill, not chance.

The CCI has issued a public notice inviting comments on the proposal, which includes amendments to both Play Store distribution rules and Google’s advertising policies in India. 

If accepted, the revised framework would permit “games of skill” to be listed and promoted more broadly, subject to proof from recognised industry bodies such as the All India Gaming Federation, E-Gaming Federation, or the Federation of Indian Fantasy Sports, as per the report.

The company has proposed to allow compliant RMG apps to appear on Google Play within 120 days of regulatory approval, with corresponding advertising policy changes to follow within 150 days.

Google's existing pilot programme, launched in September 2022, allowed only daily fantasy sports and rummy apps, in line with a 2021 Supreme Court ruling that classified such games as involving skill.

However, this limited scope prompted WinZO to file a complaint with the Delhi High Court, arguing the policy was discriminatory toward other RMG apps. The CCI subsequently launched a formal investigation into Google's practices.

Roland Landers, CEO of AIGF, described the move as “a timely and welcome step toward building a more equitable and transparent digital ecosystem for the Indian gaming industry.”

He added, “The inclusion of certification by recognised self-regulatory bodies is an important acknowledgment of the structured compliance efforts undertaken by the AIGF and other stakeholders in the online gaming sector over the years.”

Landers further noted, “Under the chairmanship of a former Supreme Court Justice, the AISGC has applied an exhaustive qualitative and quantitative framework to determine whether a game qualifies as one of skill under Indian law.”

Highlighting the broader implications, Landers said, “As the RMG sector continues to evolve, consistent and fair platform access will be critical to its long-term sustainability. As the representative of the largest number of MSMEs in the online skill gaming space,

we believe this move will help create a level playing field, reduce entry barriers, and give a much-needed boost to smaller and emerging operators. It will also provide further impetus to the growth of India’s online gaming sector, supporting job creation, digital inclusion, and the broader digital economy.”

While Google in January 2024 had announced plans to expand support for real-money gaming apps in India, Brazil, and Mexico, it paused the rollout in June. Under the new proposal, developers will still be required to provide proof from an authoritative third party to ensure legal compliance.

The proposal, if approved, could bring commercial benefits to Google through expanded app listings and increased ad revenue, as real-money gaming currently constitutes around 86% of India’s online gaming market, contributing Rs 274.38 billion ($3 billion) in 2024 revenue.

A joint report by WinZO and the Interactive Entertainment and Innovation Council (IEIC) projects this figure will rise to Rs 785.51 billion ($8.9 billion) by 2029, even as the RMG share declines to 80%.

The proposal could also open new opportunities for developers currently relying on direct downloads through APK files or third-party platforms.

As per the report, Meanwhile, the CCI investigation into whether Google’s past practices were anti-competitive remains ongoing. The company is also contending with other antitrust findings in India, including a case related to its Android and Play Store dominance, which it has appealed in the Supreme Court. A hearing in that matter is expected next month.