India’s Proposed EU-Like Antitrust Law: A New Regulatory Challenge for Tech Firms
India is set to introduce a new antitrust law that could pose a significant regulatory challenge for tech giants like Apple, Google, and Meta. The proposed law, inspired by the EU’s Digital Markets Act, aims to promote fair competition in the digital market and prevent the exploitation of users’ data.
The proposed law is expected to have a significant impact on the tech industry.
The law would apply to companies with a domestic turnover exceeding $480 million or a global turnover of over $30 billion, along with a local user base of at least 10 million for their digital services. This means that companies like Apple, Google, Meta, and Amazon would come under the purview of the Indian law.
The government panel that proposed the law cited the need for new regulations, as the digital market is becoming increasingly concentrated, with a few large companies wielding immense control over the market. This, in turn, has led to an imbalance in bargaining power, with smaller digital firms and startups depending on the larger companies.
“The government panel said new regulations were needed as the digital market was increasingly becoming concentrated, with a few large companies wielding immense control over the market.”
The proposed law would require companies to operate in a fair and non-discriminatory manner, with penalties of up to 10% of a company’s global turnover for violations. Companies would also be prohibited from exploiting non-public user data and from favoring their own products or services on their platforms.
The proposed law aims to promote fair competition in the digital market.
In addition, companies would be barred from restricting the ability of users to download, install, or use third-party apps in any way. They would also have to allow users to select default settings freely.
The law proposal and feedback received will now be reviewed by the Ministry of Corporate Affairs, whose minister, Nirmala Sitharaman, remains in place following India’s election.
India is not new to scrutinizing tech firms. Amazon and Walmart’s Flipkart are already being examined for promoting select sellers on their e-commerce platforms, hurting rivals. Google has faced antitrust fines and is embroiled in legal battles over abusing its position in the Android mobile operating system market, including restricting users’ ability to remove pre-installed apps.
Tech firms are already under scrutiny in India.
The proposed law is a significant development in India’s efforts to regulate the tech industry and promote fair competition. As the law proposal is reviewed, tech firms will be watching closely to see how it will impact their business models.
The proposed law poses a significant regulatory challenge for tech firms.
