The US lobby representing big tech giants like Google, Amazon and Apple has urged India to reconsider its proposed EU like antitrust law- ‘Digital Competition Bill, a regulation against the use of non-public data.
The lobby cited possible increases in user fees and negative impact on investments.
What is DCB?
Digital Competition Bill (DCB) is a draft proposed by a government panel in February imposing obligations on the big tech giants who have gained enough market power recently. The panel proposed the new regulations to complement the existing regulations.
India’s “Digital Competition Bill” is on the lines of EU’s landmark Digital Markets Act 2022. This bill will apply to big firms, including those with a global turnover of over $30 billion and whose digital services have at least 10 million users locally.
This bill proposes to prohibit companies from exploiting non-public data and promoting their services over rivals. This would also abolish restrictions on downloading of third-party apps.
The Indian panel says the new law is needed as a few large digital enterprises “wield immense control over the market”. As in the EU, it is recommending a penalty of up to 10% of a company’s annual global turnover for violations.
US Lobby’s Cry
The US-India Business Council (USIBC), part of the US Chamber of Commerce, raised these concerns in a letter dated May 15 to India’s Ministry of Corporate Affairs.
The USIBC said that this would hinder companies’ ability to launch new features and improve security, potentially leading to lower investment in India and higher prices for digital services. The group’s letter, which has not been made public but was reviewed by Reuters, claims that India’s draft law is broader in scope than the EU’s.
Despite opposition, close to 40 Indian startups are backing the new law to curb monopolistic practises in India and level the playing field for all companies. The Indian government is currently studying feedback on the proposal before seeking parliamentary approval.
The major companies in the lobby are currently facing or have faced many allegations by the Competition commission of India. In 2022, the CCI fined Google $161 million, requiring users to uninstall pre-installed apps and download alternatives without using Google’s app store.
Amazon is facing a separate investigation for allegedly favoring certain sellers on its platform, an accusation Amazon denies. Apple, which has been under scrutiny for its dominance of the app market, also denies any anti-competitive behaviour.
