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- In February, an Indian government committee introduced the Digital Competition Bill to prevent big tech companies from dominating the market. The bill aims to create a level playing field for all.
- But the bill is opposed by major tech companies including Apple, Google and Amazon, who believe it will make it harder to operate in India and ultimately lead to higher prices for users.
- But at the same time, the bill has the backing of 40 Indian startups that want to rid the market of monopolistic practices.
India’s proposed EU-like competition law faces stiff opposition from a US lobbying group made up of tech giants such as Google, Apple and Amazon. Enforcing such a law would ultimately harm Indian users.They may have to contend with rising prices for the same products.
was suggested”Digital Competition Bill” was introduced by a committee of the Indian government in February this year. Certain companies have a lot of power in the market And it makes it harder for smaller rivals (Indian companies, to be precise) to compete.
There are already laws in place to address this imbalance of power. Government of India It feels like it will take too long to implement. The new set of rules is expected to work in tandem with existing regulations.
What do India’s new regulations suggest?
New competition rules inspired by the Digital Markets Act 2022 At least 10 million users in India with total annual revenue of $30 billion.
It will keep them away from:
- Unfairly promoting your own products over those of other companies.
- Use the data you collect from your users to gain an unfair advantage over your competitors.
- Impose restrictions on downloading third-party apps.
If a company violates these rules, it will be liable to pay a fine. Fines of up to 10% of annual worldwide turnover.
Concerns from Big Tech Companies
Most of the tech companies mentioned above are already struggling to comply with EU regulations. If India were to implement a similar law, Difficult to do business smoothly in India— the country where the majority of their operations are based.
Lobby groups opposed to the bill include:
- Such a bill may force the company to scale back the range of services it offers in India.
- The challenges of doing business in India may discourage them from making large investments in the country.
- Complying with the new laws could be costly for businesses, resulting in higher prices for services and products for users.
The U.S.-India Business Council (USIBC), a division of the U.S. Chamber of Commerce, sent a letter to the corporate affairs industry (which is working on the bill) on May 15, urging them to reconsider the bill.
However, it is important to note that not everyone is against the new rules. US companies are strongly opposed, 40 Indian startups pledge their supportThey all want a free and fair market where everyone has an equal opportunity.
The sudden need for rules
India has a huge population of about 1.44 billion people, making it an attractive market for any company, especially those in the technology sector. Some tech giants have resorted to underhanded tactics To gain an advantage over your rivals.
For example, the Competition Commission of India (CCI) has been investigating many industry leaders over the years and in 2022, Google is restricting users from removing pre-installed apps.The company claimed it was for user safety, but was still hit with a $161 million fine.
Additionally, Google came under intense public scrutiny in early March. Many Indian dating apps deleted The payment for the service was declined by Google Play Store.
Amazon has been accused of giving preferential treatment to select sellers on its Indian site, and Apple has also been accused of abusing its dominant market position. Lawsuit from EU Same. However, it’s worth noting that both Google and Apple have denied the allegations leveled against them.
When will this bill come into effect? There is currently no set timeline for implementation.However, the bill will first be considered by the Government of India before being sent to Parliament for a vote.
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“India’s proposed EU-like competition law has faced stiff opposition from a US lobby consisting of tech giants like Google, Apple and Amazon, which have argued that implementing it…
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