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Tech Giants Google, Amazon, and Apple Oppose India's Proposed Antitrust Law

A lobby group representing Google, Amazon, and Apple opposes India's proposed antitrust law. The group argues that regulations on data use and preferential treatment could increase user costs. The USIBC warns that the law could impact investment, prices, and services in India.

Smartphone with Google and Amazon apps are seen placed on keyboard in this illustration
Credit: REUTERS

The group argues that regulations targeting data use and preferential treatment of partners could lead to increased costs for users. In a letter to India's Corporate Affairs Ministry, the U.S.-India Business Council (USIBC) highlights the potential impact on investment, prices, and services if the law is implemented.


The Indian government panel proposed imposing obligations on big digital companies under a new antitrust law, citing the growing market power of a few major players in the country. The "Digital Competition Bill" draws inspiration from the EU's Digital Markets Act and aims to regulate firms with a global turnover of over $30 billion and at least 10 million local users.


One of the key provisions of the proposed law is the prohibition of companies exploiting non-public user data and promoting their own services over competitors. Additionally, restrictions on downloading third-party apps would be abolished. The USIBC argues that these strategies are crucial for launching new product features and enhancing user security, and limiting them would hinder the plans of tech companies.


The USIBC's letter emphasises that the draft Indian law goes beyond the scope of the EU's legislation. It warns that targeted companies are likely to reduce investment in India, pass on increased prices for digital services, and limit the range of services available. However, the USIBC did not respond to queries from Reuters, and neither did the Corporate Affairs Ministry, Apple, Amazon, or Google.


India, with its population of 1.4 billion people and a growing affluent class, is an attractive market for big tech companies. Apple CEO Tim Cook recently announced that the company achieved a "revenue record" in India during the March quarter, despite a decline in global revenue. The Indian panel argues that the new law is necessary to address the immense control wielded by a few large digital enterprises in the market. Similar to the EU, the panel recommends penalties of up to 10% of a company's annual global turnover for violations.


The Competition Commission of India (CCI) has been investigating big tech firms for several years. In 2022, Google was fined $161 million by the CCI for restricting users from removing its pre-installed apps and limiting app downloads to its app store. Amazon is also facing an antitrust investigation for allegedly favoring select sellers on its Indian website, while Apple is being investigated for alleged abuse of its dominant position in the apps market. Both companies deny the allegations.


In contrast to the lobby group's opposition, a group of 40 Indian startups has expressed support for the new Indian law. They believe it can help address monopolistic practices of dominant digital platforms and create a level playing field for smaller companies.

 
  • A lobby group representing Google, Amazon, and Apple opposes India's proposed antitrust law.

  • The group argues that regulations on data use and preferential treatment could increase user costs.

  • The USIBC warns that the law could impact investment, prices, and services in India.


Source: REUTERS

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