Tech Giants Lobby Against India’s Proposed Antitrust Law, Citing Concerns Over User Costs and Innovation

India's "Digital Competition Bill", modeled after the EU's Digital Markets Act 2022, aims to impose obligations on major firms with a global turnover exceeding $30 billion and local digital services boasting at least 10 million users.

New Delhi: A lobbying effort by a U.S. group representing tech behemoths Google, Amazon, and Apple is urging India to reconsider its proposed antitrust legislation, warning that regulations targeting data use and preferential treatment of partners could escalate user costs. The lobbying push comes amidst mounting scrutiny over the increasing market dominance of a few major digital players in India.

India’s “Digital Competition Bill”, modeled after the EU’s Digital Markets Act 2022, aims to impose obligations on major firms with a global turnover exceeding $30 billion and local digital services boasting at least 10 million users. The proposed law seeks to prohibit companies from leveraging non-public user data and promoting their own services over competitors, while also seeking to eliminate restrictions on third-party app downloads.

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In a letter dated May 15 to India’s Corporate Affairs Ministry, the U.S.-India Business Council (USIBC) voiced apprehensions, suggesting that curbing these strategies could hinder product innovation and user security measures. While the draft law aligns with the EU’s framework, the USIBC contends that it extends further in scope.

Expressing concerns over potential repercussions, the USIBC warned of reduced investment, increased digital service prices, and narrowed service offerings should the proposed regulations be implemented.

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Amidst these deliberations, a group of 40 Indian startups has thrown its support behind the proposed law, viewing it as a potential remedy to address monopolistic practices by dominant digital platforms and foster a fairer playing field for smaller enterprises.

With India emerging as a pivotal market for global tech giants, the proposed legislation signals a shift towards tighter regulatory oversight. However, the Indian government will need to carefully consider feedback on the proposal before seeking parliamentary approval.

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