Apple opposes India’s new digital market regulations

Apple, Google and Amazon urge India to reconsider proposed Digital Competition Act, citing concerns over increased costs for users and potential restrictions on investment (via Reuters).

A US lobbying group representing major technology companies has asked the Indian government to rethink proposed legislation that closely mirrors the European Union’s Digital Markets Act. The request was made in a letter sent by the US-India Business Council (USIBC), part of the US Chamber of Commerce, to the Indian Ministry of Corporate Affairs. The proposed Digital Competition Act aims to regulate the market power of large digital companies with global revenues of more than $30 billion and at least 10 million local users.

The purpose of the Digital Competition Act is to introduce measures to prevent companies from using non-public user data and giving preferential treatment to their own services compared to those of their competitors. The bill will also lift restrictions on sideloading applications.

USIBC expressed concerns that these regulations could have serious consequences for targeted companies such as Apple. According to the Council, the Indian draft law has a “significantly broader scope” than EU regulations, which could result in reduced investment in India, higher prices for digital services and a reduction in the range of services available to consumers.

The Indian government argues that the new law is necessary to address the growing market power of a few large digital companies that “have enormous control over the market.” The proposed rules include provisions for penalties of up to 10 percent of a company’s annual global turnover for violations.

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