A US lobbying group representing tech giants Google, Amazon and Apple has proposed EU-style competition law for India, arguing that data usage rules and preferential treatment for partners could increase costs for users, prompting the government to rethink its approach
Citing the growing market power of several digital giants in India, a government committee in February announced new rules to supplement existing regulations that would take “time” to implement due to the growing market power of several digital giants in India. The proposal to impose obligations on these companies on the basis of antitrust law.
India’s digital competition law is in line with the EU Digital Markets Index 2022. The bill applies to large companies, including those with global revenues of more than $30 billion and whose digital services have at least 10 million domestic users, and the largest technology companies in the world are among his ambitions.
It also proposes banning companies from misusing users’ private data or promoting their services to competitors, and lifting restrictions on downloading third-party apps.
The US-India Business Council, part of the US Chamber of Commerce (USIBC), said in a May 15 letter to Indian companies that companies are using such strategies to announce new product features, increase user security and mitigate impact on programs . The Ministry of Interior and Communications is working on the law.
According to the letter, which has not been made public but seen by Reuters, India’s draft law is “much more comprehensive” than the EU’s draft law.
“Target companies are likely to reduce their investments in India, pass on price increases for digital services and reduce their scope of services,” the report said.
The USIBC called on India to reconsider the proposed law but did not respond to questions from Reuters, as did the Ministry of Corporate Affairs, Apple, Amazon and Google.
With a population of 1.4 billion people and a growing affluent population, India is a lucrative market for tech giants. Apple CEO Tim Cook said this month that the company had “record sales” in India in the March quarter, as global sales fell 4 percent.
The Indian commission says the new law is necessary because a small number of large digital companies “exercise too much control over the market.” Like the EU, it recommends fines of up to 10 percent of a company’s global annual turnover for violations.
The Competition Commission of India (CCI) has been investigating large technology companies for years.
In 2022, the CCI fined Google $161 million and ordered it to stop preventing users from removing pre-installed apps and allowing them to download them without using the App Store. Google denies wrongdoing and says these restrictions increase user safety.
Amazon is also under antitrust investigation over preferential treatment of some sellers on its Indian site, a claim the company denies. Apple also denies these allegations, but is facing an investigation for alleged abuse of its dominant position in the applications market.
However, a group of 40 Indian startups support India’s new law, saying it will help combat the monopolistic practices of dominant digital platforms and create a level playing field for small businesses.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
