Tech giants Google, Amazon, and Apple are pushing back against India’s proposed EU-like competition law, citing concerns about increased user costs and restrictions on data use. The U.S. lobby group representing these companies, the U.S.-India Business Council (USIBC), has written a letter to India’s Corporate Affairs Ministry urging a rethink of the Digital Competition Bill.
The proposed law aims to regulate big digital companies in India, imposing obligations on firms with a global turnover of over $30 billion and at least 10 million local users. It seeks to prevent companies from exploiting user data and favoring their own services over competitors, as well as removing restrictions on downloading third-party apps.
The USIBC argues that these regulations could hinder companies’ ability to innovate and impact their investment plans in India. They warn that targeted companies may pass on increased prices for digital services and reduce the range of services offered in the country.
While the USIBC is advocating for a reconsideration of the law, a group of 40 Indian startups has expressed support for the legislation, believing it can address monopolistic practices and create a level playing field for smaller companies.
With India being a lucrative market for tech companies due to its large population and growing affluent class, the outcome of this debate will have significant implications for the industry. The Indian government will review feedback on the proposal before seeking parliamentary approval, potentially reshaping the digital landscape in the country.