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India's Enforcement Directorate has summoned top executives from Google and Meta as part of an ongoing money laundering investigation. This action was prompted by concerns surrounding various online betting apps.
According to two government sources, these tech giants are under investigation for allegedly facilitating the promotion of these illegal sites through advertising. Regulatory authorities have issued advisories against such practices.
Executives from both companies are required to appear before the agency at its headquarters in New Delhi on July 21.
The ED is exploring the possibility of allowing betting apps to advertise on these platforms' digital channels, potentially enabling a wider reach and user acquisition despite government restrictions.
The officials are also looking out for violations of money-laundering laws involving the flow of funds between operators of betting platforms and the operators themselves.
The agency suspects that the companies may have accepted payments from illegal betting platforms for ad space. The investigation will also examine whether other unauthorized betting apps are being promoted via Google or Meta.
One source has accused Google and Meta of 'illicit promotions' despite being advised otherwise. Asked for comment, neither company has responded immediately.
Such inquiry aligns with the Indian government’s drive against any digital ecosystem that may inadvertently promote unlawful activity, especially if it exploits unwitting users in the name of entertainment or fast-money-making schemes.
This is not the first time India has raised concerns against international tech platforms that it believes are allowing activities deemed unlawful under local laws. Similar warnings had been issued in the past regarding promotions related to cryptocurrency or loan apps.
However, summoning the heads of tech giants such as Google and Meta shifts the tone beyond mere warnings.
Potentially huge fines, platform bans, or more stringent regulations could be imposed on the platforms if the Enforcement Directorate establishes a firm link between ad revenues and illegal betting operations.
The consequences of this case might set a precedent for holding tech companies accountable in emerging digital economies where regulation is yet to catch up with innovation.
