- A US lobby group for Google, Amazon, and Apple has urged India to reconsider its proposed Digital Competition Bill, similar to the EU’s Digital Markets Act.
- The bill aims to regulate data use and prevent preferential treatment of partners, potentially impacting tech giants’ investment and service offerings in India.
- Indian startups support the bill, viewing it as a measure to counter monopolistic practices and promote fair competition.
A US lobby group representing major tech firms like Google, Amazon, and Apple has urged India to reconsider its proposed Digital Competition Bill, which mirrors the EU’s Digital Markets Act 2022. The draft law aims to regulate the market power of large digital companies by prohibiting the exploitation of non-public user data, restricting preferential treatment of their own services, and allowing the downloading of third-party apps. The US-India Business Council argues that these measures could raise user costs, reduce investment, and limit service offerings. While Indian startups support the law for fostering fair competition, the government is currently reviewing feedback before proceeding to parliament.
Tech giants lobby against proposed Indian Competition Law
A lobby group representing Google, Amazon, and Apple urges India to reconsider its proposed EU-like competition law, citing concerns over data use regulations and preferential treatment restrictions.
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Key provisions of the Digital Competition Bill
In February, India’s government panel proposed the “Digital Competition Bill” to tackle the increasing market power of major digital companies, modeled after the EU’s Digital Markets Act.The bill targets big firms with a global turnover exceeding $30 billion and digital services with at least 10 million local users, aiming to prohibit data exploitation, favoritism of own services, and restrictions on third-party app downloads.
USIBC raises concerns over scope and impact
The US-India Business Council expresses worries in a letter to India’s Corporate Affairs Ministry, suggesting that the bill’s broad scope could lead to reduced investment, increased service costs, and limited innovation opportunities.
Next steps and timeline for the Digital Competition Bill
While tech giants like Apple report revenue growth in India, they face ongoing investigations by the Competition Commission of India. Meanwhile, a group of 40 Indian startups voices support for the bill, seeing it as a means to address monopolistic practices and foster fair competition.The Indian government will review feedback on the proposed bill before seeking parliamentary approval, with no set timeline for the process.
