Lobby group USIBC is calling on India to rethink its proposed antitrust law

US lobbying group US-India Business Council (USIBC), which represents major technology companies including Google, Amazon and Apple, has urged India to reconsider its proposed digital competition law. These laws are similar to the European Union’s Digital Markets Act 2022 and aim to impose stringent regulations on large digital companies operating in India.

USIBC is part of the United States Chamber of Commerce and has expressed concerns that the new regulations could increase user costs and hamper innovation.

In a letter dated May 15, USIBC urged India’s Ministry of Corporate Affairs to reassess the bill, stressing that the Indian bill is “much broader in scope” than its EU counterpart, it said Reuters.

The proposed Digital Competition Act aims to address the growing dominance of a few large digital companies in the Indian market. It targets companies with global sales of more than $30 billion and at least 10 million local users, including tech giants such as Google, Amazon and Apple.

The bill’s key provisions include prohibiting companies from using non-public user data, promoting their services over competitors, and restricting downloads of third-party applications.

According to USIBC, these measures could lead to reduced investment in India, higher prices for digital services and a narrower range of available services. The letter also warns that such regulations could significantly force targeted companies to change their business strategies, which could impact their growth and operations in India.

The push for stricter regulations comes amid ongoing investigations by the Competition Commission of India (CCI) into practices by major technology companies. In 2022, the CCI imposed a fine on Google of USD 162 million for its antitrust policy. The authority is also investigating Google over a dispute with local app developers over its in-app billions system.

The CCI is also examining e-commerce giants such as Amazon and Flipkart under antitrust laws.

In contrast to USIBC’s position, a coalition of 40 Indian startups expressed support for the bill, arguing that it would curb monopolistic practices and create a more level playing field for smaller companies.

USIBC’s current position is hypocritical as each country can decide on competition policy. Given that European countries can set detailed guidelines and restrictions for access gatekeepers, it begs the question why countries like India, which boasts the world’s largest open market, cannot enact their own laws in this regard.

In news: A persistent DDoS attack disrupts Internet Archive services