The ED has summoned Google and Meta in connection with an illegal betting advertisement case. Failure to appear on July 28th could result in fines and stringent legal action against the companies. This case raises serious questions about digital advertising policies, security, and user trust.
Google or Meta: A major upheaval has hit the digital advertising industry in India. The Enforcement Directorate (ED) has ordered tech giants like Google and Meta to appear on July 28th, alleging that they promoted illegal online betting apps. The agency claims that these companies allowed such apps to advertise on their platforms, which not only promoted illegal betting but were also involved in money laundering worth crores of rupees.
What is the whole case about?
This case pertains to online betting apps that were promoted in the name of skill-based gaming, but in reality, they became havens for illegal gambling. According to reports, platforms like Mahadev Betting App and Fairplay IPL attracted millions of users. Their reach was rapidly expanded through advertisements.
The ED alleges:
- Google and Meta ran advertisements for these apps for a hefty sum.
- The earnings from these apps were concealed through hawala channels.
- Serious questions have been raised about the platforms' advertising policies.
Summons had been sent before as well
The ED had summoned Google and Meta for questioning on July 21st, but no representatives from either company appeared at the Delhi office. This case is related to advertisements for illegal betting apps, on which the agency is taking serious action. Now, the ED has again issued a notice to both companies to appear on July 28th. If they fail to appear this time as well, the agency may take strict legal action, which could further increase their difficulties.
Why have the companies' troubles increased?
In this case, not only tech companies but also 29 celebrities and influencers are under investigation. These include:
- Actors: Vijay Deverakonda, Rana Daggubati, Prakash Raj
- Actresses: Nidhi Agarwal, Pranitha Subhash, Manchu Lakshmi
- TV artists and Influencers: Sreemukhi, Shyamala, Varshini Sounderajan, Vasanthi Krishnan, Shobha Shetty, Amrita Choudhary, Nayani Pavani, Neha Pathan, Pandu, Padmavathi, Harsha Sai, Bayya Sunny Yadav, etc.
These celebrities are accused of promoting these apps, which boosted their user base.
Why is this case serious from a technical perspective?
1. Questions about advertising transparency
Questions are now being raised about the automation and AI-based recommendation system of advertisements running on digital platforms.
2. Misuse of algorithms
The algorithms of these platforms were delivering these advertisements to the targeted audience.
3. Regulatory Gap
A strict monitoring framework for the digital advertising industry in India is still under development.
What if Google and Meta do not appear?
If Google and Meta do not appear in response to the ED's summons, they could face heavy fines. This fine could be in crores and could affect their working process in India. Additionally, the investigation against them could be intensified under the IT Act and the Money Laundering Act. The government may also create new strict rules for digital advertisements in the future.
Its impact on users and the digital ecosystem
This case can also affect the general public. If illegal advertisements continue to appear on the platform, users' trust will decrease. People will be afraid to click on such advertisements, which may raise questions about their online security. Digital companies will now have to strictly comply with the rules. The government will also keep a closer watch on such cases, which may increase scrutiny in the online gaming and app industry.