Google and Meta might not be automatically protected from liability anymore just because they host third-party content in India, according to legal experts. The shift comes as country’s Enforcement Directorate (ED) looks into money laundering allegations tied to online betting apps.
Both tech giants were called into the ED’s headquarters on July 21, but they didn’t show up. They were then issued new summons for July 28. Google did turn up for the meeting, but Meta didn’t send anyone for the probe into the same issue.
Google Says : We’re committed to keeping our platforms safe and secure, prohibiting the promotion of illegal gambling ads. Our continuous AI advancements, complemented by human expertise, ensure all ads on our surfaces comply with local laws and our strict ad policies, and… https://t.co/eo5l4RUDyd
— Aseem Manchanda (@aseemmanchanda) July 21, 2025
A Google spokesperson told ReadWrite that the company is “committed to keeping our platforms safe and secure, prohibiting the promotion of illegal gambling ads.” The company also said, “Our continuous AI advancements, complemented by human expertise, ensure all ads on our surfaces comply with local laws and our strict ad policies, and protect users from evolving threats. Last year alone, we removed 247.4 million ads and suspended 2.9 million advertiser accounts in India.
“We are extending our full support and cooperation to investigating agencies to hold bad actors responsible and keep users safe.”
Why India is accusing Google and Meta of promoting sketchy betting apps
The ED is accusing Google and Meta of actively helping promote betting apps that are under investigation for serious financial crimes like money laundering and illegal wire transfers, often referred to as ‘hawala’. Authorities say both companies gave these apps prime ad space and allowed their associated websites to gain visibility, which helped them spread more widely.
“If it can be proven that they had the knowledge of illegal operations of such platforms, they could be liable under various legislations.” – Gaurav Bhalla, Ahlawat & Associates Partner
The investigation is focusing on a large web of betting apps, many of which are disguised as skill-based games but are actually running illegal gambling operations. The platforms are thought to have made crores of rupees in illegal funds, often funneled through complex hawala routes to dodge detection.
Tech giants may qualify for ‘safe harbour’
Legal experts have explained to ReadWrite that digital platforms could face serious criminal charges if they knowingly promote illegal betting operations. Gaurav Bhalla, a partner at Ahlawat & Associates, stated that a platform’s legal risk largely depends on whether it qualifies for “safe harbour” under Section 79 of the Information Technology Act, 2000.
“The primary aspect to be determined while ascertaining whether they would be liable or not would depend on whether they’re able to claim safe harbour,” Bhalla said. “If they’re able to claim the defence, a lot of their liability will be minimized. However, if it can be proven that they had the knowledge of illegal operations of such platforms, they could be liable under various legislations.”
He pointed out that there have been cases where intermediaries were held responsible for third-party content when they didn’t meet the criteria for safe harbor. That includes acting only as a passive channel, not altering content, and following the government’s due diligence guidelines.
Bhalla said platforms lose that protection when “the intermediary has conspired or abetted or aided or induced” an illegal act, or if they fail to act after being notified by authorities. “If the intermediary has knowledge that it is facilitating the operation of online betting platforms, it wouldn’t be able to claim safe harbour (and will be held liable for the content hosted on their platform).”
Without safe harbor, platforms could come under the scanner of the Prevention of Money Laundering Act for enabling illegal financial activity, and could also be charged with abetment under the Bharatiya Nyaya Sanhita for advertising banned services.
But the liability doesn’t stop with the platforms. Bhalla warned that “the app developers (which developed such betting platforms) and media outlets (which advertised such platforms) could be held liable under provisions relating to abetment and criminal conspiracy under Sections 56 and 62” of the Bharatiya Nyaya Sanhita, 2023.”
Celebrities in the firing line
Even public figures aren’t off the hook. “The celebrities which endorse or promote such apps on social media could be subject to prosecution under” the Guidelines for Prevention of Misleading Advertisements, 2022. Since online betting is banned under the Public Gambling Act, 1867, any kind of endorsement could also violate the Consumer Protection Act, 2019.
To reduce these risks, Bhalla recommends that companies and influencers carry out legal checks and sign contracts that include warranties and indemnity clauses, “to cater to situations where the tech companies or the endorsers suffer any financial liability owing to the illegal operations of the online better platform.”
The investigation is part of a larger crackdown by the government agency, which picked up steam after evidence surfaced showing that foreign-linked betting operations were using Indian platforms to carry out illegal transactions.
The Ministry of Information and Broadcasting had previously issued advisories warning digital platforms not to run ads related to betting, but reports suggest those warnings were widely ignored, leading to deeper scrutiny.
To all who want to know what happened with the ED summons today. Thank you
https://t.co/VGJGK9avkU
— Prakash Raj (@prakashraaj) July 30, 2025
As part of the ongoing probe, the ED has now summoned several actors in connection with the case. Rana Daggubati was asked to appear at the agency’s zonal office in Hyderabad on July 23, while Prakash Raj was summoned for July 30. Vijay Deverakonda is expected to appear on August 6, and Lakshmi Manchu on August 13.
Speaking after being summoned, Raj said: “The officers summoned me as a citizen of the country in connection with a money laundering case linked to betting apps. It was something I was offered back in 2016.
“On moral grounds, I chose not to pursue it. I informed them that I had not received any money, as I had declined the offer.”
The celebrities are being investigated over their alleged promotion of illegal betting apps on social media platforms.
ReadWrite has reached out to Google and Meta for comment.
Featured image: Canva / Google / Meta
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