India’s competition authority launched an investigation into Google’s restrictive restrictions for real-money games on its platform on Thursday.
TakeAway Points:
- India’s competition watchdog ordered a probe into Google’s restrictive policies for real-money games on its platform.
- Real-money games for rummy and fantasy sports were permitted by the amended Google policy, but WinZO was turned down because it included games in other categories that Google does not allow, like puzzles, auto racing, and the Indian game of carrom.
- Intel said on Wednesday its deal for $7.86 billion in U.S. government subsidies restricts the company’s ability to sell stakes in its chipmaking unit if it becomes an independent entity.
Google’s gaming app policy under probing
This was after a complaint by online gaming platform WinZO that called it discriminatory.
The move compounds Google’s regulatory headaches in India, where it has already been hit with at least two penalties for abusing its dominant position in the Android operating system market.
WinZO, which offers real-money games, first approached the Competition Commission of India (CCI) in 2022, after a change in the U.S. company’s gaming app policy continued to exclude WinZO from Google’s Play Store, even as it accepted some of its competitors.
The updated Google policy allowed real-money games for fantasy sports and rummy, but WinZO was rejected as it also offered games in other categories that Google does not accept, such as the Indian game of carrom, puzzles and car racing.
“By granting preferential treatment to select app categories, Google effectively creates a two-tier market where some developers are accorded superior access and visibility while others are discriminated against and thus left with a competitive disadvantage,” a copy of the CCI order stated.
A CCI official is expected to complete its investigation into the matter within 60 days.
Intel’s $7.86 billion subsidy deal restricts sale of its manufacturing unit
Intel announced that its agreement to receive $7.86 billion in government subsidies from the United States limits its ability to sell shares in its chip manufacturing division should it become a separate business.
The U.S. Commerce Department announced the subsidy to Intel on Tuesday, part of $39 billion for the sector, including Taiwan Semiconductor Manufacturing Co. and others, in an effort to revitalize chip manufacturing in the United States.
Intel Chief Executive Pat Gelsinger said in September that the company planned to spin its chip manufacturing operations into a subsidiary and was open to taking on outside investors in the unit, called Intel Foundry.
In a securities filing, Intel said on Wednesday the subsidies require it to own at least 50.1% of Intel Foundry if the unit is separated into a new privately held legal entity. If Intel Foundry becomes a public company and Intel itself is not the largest shareholder, the company could sell only 35% of Intel Foundry to any single shareholder before running into change-in-control provisions.
A Commerce Department spokesman said the government is negotiating change-in-control provisions with all direct grant recipients.
Intel would need to comply with the restrictions to continue the company’s $90 billion worth of projects in Arizona, New Mexico, Ohio, and Oregon and keep manufacturing cutting-edge chips in the U.S., according to the filing. Any changes in control could require Intel to seek permission from the U.S. Department of Commerce, the filing said.
