Apple, Google and Amazon Lobby Group oppose India’s EU-style antitrust proposal

A US lobbying group representing tech giants Google, Amazon and Apple has proposed an EU-style competition law for India, arguing that data use rules and preferential treatment for partners could increase costs for users, prompting the government to rethink its approach

Citing the growing market power of several digital giants in India, a government commission in February announced new rules in addition to existing regulations, which would take “time” to implement due to the growing market power of several digital giants in India. A proposal to impose obligations on these companies under antitrust law.

India’s digital competition law is in line with the EU Digital Markets Index 2022. The law applies to large companies, including those with global revenues exceeding $30 billion and whose digital services have at least 10 million domestic users, and the largest technology companies in the world are among its ambitions .

It also proposes banning companies from misusing users’ private data or promoting their services to competitors, as well as lifting restrictions on downloading third-party applications.

The US-India Business Council, part of the United States Chamber of Commerce (USIBC), said in a May 15 letter to Indian companies that companies use such strategies to announce new product features, enhance user security and mitigate program impacts. The Ministry of Internal Affairs and Communications is working on the act.

The Indian bill is “significantly more comprehensive” than the EU bill, according to the letter, which has not been made public but was seen by Reuters.

“Target companies are likely to reduce their investments in India, pass on price increases for digital services and limit the scope of services,” the report said.

USIBC urged India to reconsider the proposed law but did not respond to Reuters’ questions, nor did the Ministry of Corporate Affairs, Apple, Amazon and Google.

India, with 1.4 billion people and growing wealth, is a lucrative market for tech giants. Apple CEO Tim Cook said this month that the company reported “record sales” in India in March, while global sales fell 4 percent.

The Indian commission says the new law is necessary because a small number of large digital companies “exercise too much control over the market.” Like the EU, it recommends penalties for violations of up to 10 percent of a company’s total annual turnover.

The Competition Commission of India (CCI) has been investigating large technology companies for years.

In 2022, the CCI fined Google $161 million and ordered it to stop preventing users from removing pre-installed apps and allowing them to download them without using the App Store. Google denies abuse and says these restrictions make users safer.

Amazon is also under antitrust investigation for giving preferential treatment to some sellers on its Indian site, which the company denies. Apple also denies the allegations, but faces investigation for allegedly abusing its dominant position in the app market.

However, a group of 40 Indian startups supports the new Indian law, saying it will help fight monopolistic practices of dominant digital platforms and create a level playing field for small businesses.

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