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Source-This post on Digital Competition Regulation in India has been created based on the article “India’s law on digital protection places the ‘little citizen’ upfront” published in “Live Mint” on 27 August 2024.
UPSC Syllabus-GS Paper-2- Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Context– The recent US court ruling on Google’s search monopoly has sparked global debates about the power of major tech companies like Google, Meta, and Amazon. This impacts India’s draft digital competition law, which seeks to boost user choice and competition by allowing third-party apps on Core Digital Services.
Big Tech’s dominance, especially through app store policies, is facing more scrutiny and regulation. In India, the Competition Commission has fined Google ₹1,338 crore for issues with Android and ₹936 crore for problems with its Play Store and in-app payments. These fines highlight concerns about Big Tech’s impact on competition and consumer choice.
What is the Draft Digital Competition Law?
The draft digital competition law in India sets specific criteria for determining which enterprises qualify as SSDEs. These criteria include:
1) User thresholds -Core digital services must have at least 1 crore end-users or 10,000 business users.
2) Financial thresholds– Enterprises must have a turnover of at least ₹4,000 crore in India or $30 billion globally.
What is the significance of Draft Digital Competition Law?
1) Promoting User Choice and Competition – The draft digital competition law aims to increase user choice and ensure fair competition. Currently, Big Tech controls app access, limiting options and giving a few companies too much power. The new law would allow users to choose from a broader range of apps and services.
2) Creation of Level Field- It allows users to add third-party apps to Core Digital Services. This change will encourage innovation by letting external developers build new apps on Big Tech platforms. It helps smaller developers and startups compete fairly, leading to more exciting and diverse app options for users.
3) Interoperability and Data Portability– Allowing third-party apps on Core Digital Services improves app compatibility, user experience, and competition. It also makes it easier for users to switch services while keeping their data, offering more choices and less reliance on one provider.
4) Data Protection and Accountability– The DPDP Act (Digital Personal Data Protection Act) sets strong rules for data protection, including measures for data empowerment, consent management, and penalties for privacy breaches. These rules are integrated into the draft digital competition law to ensure user data stays protected, even with third-party apps.
Read More– India’s Digital Personal Data Protection Act
Conclusion– As India regulates Big Tech, ensuring users have choices is essential for a fair digital market. For India, this focus on user options is important, even if it differs from the views of tech giants.
Question for practice
What is the Draft Digital Competition Law, and why is it important?
