US India Business Council against India’s proposed antitrust bill

WASHINGTON, DC (News agencies) —A US lobbying group representing tech giants Google, Amazon and Apple has urged India to reconsider proposed EU-style antitrust legislation, citing potential increases in costs for users and a negative impact on investment.

The US-India Business Council (USIBC), part of the US Chamber of Commerce, expressed these concerns in a May 15 letter to India’s Ministry of Corporate Affairs.

In February, India proposed a “Digital Competition Bill” modeled on the European Union’s Digital Markets Act, 2022. The proposed law targets large digital companies with a global turnover of more than $30 billion and at least 10 million local users. The bill aims to limit the misuse of non-public data, prevent the promotion of own services over competitors, and abolish restrictions on downloading third-party applications.

USIBC argues that these measures would make it more difficult for companies to introduce new features and improve security, potentially leading to reduced investment in India and higher prices for digital services. The group’s letter, which has not been made public but was reviewed by Reuters, said the draft Indian law was broader in scope than the EU draft.

The proposed bill is a response to the growing market power of several large digital companies. It includes penalties of up to 10% of the company’s annual global turnover for violations. The Competition Commission of India is actively investigating large technology companies, including Google, Amazon and Apple, for various antitrust issues.

In 2022, the CCI fined Google $161 million, requiring Google to allow users to remove pre-installed apps and download alternatives without using the Google app store. Google denies abuses, saying the measures increase user security. Amazon is facing a separate investigation for allegedly favoring select sellers on its platform, which it denies. Apple, under scrutiny for its dominance in the app market, also denies any anti-competitive behavior.

Despite the opposition of these tech giants, a group of 40 Indian startups supports the new law, arguing that it will limit monopolistic practices and level the playing field for smaller companies. The Indian government is currently reviewing feedback on the proposal before seeking parliamentary approval.

The National Association of Software and Services Companies (Nasscom), the apex body of the Indian IT industry, has called for a strengthened regulatory framework before the new law comes into force. In its views on the proposed Digital Competition Act, Nasscom stressed the need for a clear correlation between the means and ends of the Act and emphasized the importance of empirical evidence to justify such regulation in the complex Indian digital market.