A US lobby group is asking India to reconsider its EU-style digital competition law

JAKARTA – A US lobby group representing tech giants Google, Amazon and Apple has asked India to reconsider competition or European Union-style competition laws proposed by the Indian government. They argued that regulations on data use and preferential treatment of partners could increase user costs.

Citing the growing market power of several large digital companies in India, a government panel in February proposed imposing obligations on them under a new antitrust law that would complement existing regulations that the panel said were “long in the making” to be enforced.

India’s Digital Competition Act is based on the EU Digital Market Act already in force. This will apply to large companies, including those with global revenues of more than $30 billion and whose digital services have at least 10 million users in India. This makes some of the largest technology companies in the world subject to this law.

The bill proposes to prohibit companies from using non-public user data and promoting their own services over competitors, as well as lifting restrictions on downloading third-party applications.

Responses from an American lobby group

Companies are using this strategy to roll out new product features and improve user safety, and limiting them will impact their plans, the US-India Business Council (USIBC), part of the US Chamber of Commerce, said in a May 15 letter to the Indian Ministry Corporate Affairs, which is working on the bill.

The Indian bill has a “significantly broader scope” than EU law, said the letter, which has not yet been published but was reviewed by Reuters.

“The target company is likely to reduce investments in India, increase prices for digital services and restrict various services,” the letter said.

USIBC, which asked India to reconsider the planned law, did not respond to Reuters’ questions, nor did the Ministry of Corporate Affairs, Apple, Amazon or Google respond.

A tempting market

With a population of 1.4 billion people and an increasingly affluent middle class, India is a profitable market for large technology companies. Apple CEO Tim Cook said this month that the company reported “record revenue” in India in March, while its global revenue fell 4%.

Panel India contains the following information: karena beberapa perusahaan digital besar “miliki kekendalian besar atas pasar”. Seperti di EU, panel ini meremotywasikan denda hingga 10% dari pendapatan global tahunan perusahaan untuk pelanggaran.

The Competition Commission of India (CCI) has been investigating major technology companies for years. In 2022, the CCI fined Google $161 million, prohibiting users from restricting them from deleting pre-installed apps and allowing downloads without using the app store. Google denies the mistake and says the restrictions make users safer.

Amazon also faces an antitrust investigation over favoring certain sellers on its Indian website, which it denies. Apple also denies the allegations, but faces an investigation into alleged abuse of its dominant position in the app market.

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

There is no set timetable, but the Indian government will take stock of views on the proposal before it is tabled for parliamentary approval, with or without amendments.

Tag: India Digitalisasi Google Amazon Apple