What is India’s EU-style antitrust proposal that has irked tech giants Google, Amazon and Apple?

New Delhi: A US lobby group representing Google, Amazon and Apple has asked India to rethink its proposed EU-style competition law. The letter says this bill argues that regulations prohibiting data use and preferential treatment for partners could raise user costs.

In February, a government panel in India proposed imposing obligations on several large digital companies under a new antitrust law, citing their growing market power. The panel stressed that enforcing existing laws is “time-consuming.”

Digital Competition Act:

India’s “Digital Competition Act” builds on the EU’s landmark Digital Markets Act 2022. The law targets large companies, including those with a global turnover of more than $30 billion and whose digital services have at least 10 million users locally. , which puts some of the world’s largest technology companies within their reach.

However, some of the world’s largest technology companies would fall under its scope. A bill has been proposed to prohibit companies from using non-public data of their users and promoting their services over competitors. It also gives you the power to lift restrictions on downloading third-party apps.

Indian lucrative market for large technology companies:

India, with a population of over 1.4 billion and a growing affluent class, is a potential market for major technology corporations. This month, Apple CEO Tim Cook asserted that the company posted a “record revenue” in India in March, when its total global revenue fell 4%.

In response to concerns that a few dominant digital players would have a significant impact on the market, the Indian panel said there was a need for new law. The proposal, as with EU measures, provides for penalties of up to 10% of a company’s annual worldwide turnover for infringements.

Despite these challenges, a coalition of 40 Indian startups is backing the new legislation, arguing that it can curb monopolistic behavior by major digital platforms and foster fair competition for smaller players.

Amazon and Apple control

As a reminder, Amazon is being investigated for allegedly giving preferential treatment to some sellers on its Indian platform, which it denies. Similarly, Apple denies the allegations, but faces an investigation into alleged abuse of its dominant position in the app market.

There is no set timetable, but the Indian government plans to review views on the proposal before seeking parliamentary approval, potentially with or without modifications.