India’s Proposed Antitrust Law Targets Tech Giants Apple, Google, and Meta

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Tech giants such as Apple, Google, and Meta face a new regulatory challenge in India as the government considers implementing an antitrust law akin to the European Union’s regulations. The proposed “Digital Competition Bill” aims to impose stringent compliance obligations on these companies, potentially impacting their business models.

The Indian government is currently reviewing a report submitted by a panel in February, which recommended the enactment of the Digital Competition Bill to complement existing antitrust laws. However, the move has already faced opposition from a prominent U.S. lobby group, expressing concerns about its potential business ramifications.

Under the proposed law, companies categorized as “systemically significant digital” entities would be subject to stringent regulations. These include companies with a domestic turnover exceeding $480 million or a global turnover surpassing $30 billion, with a user base of at least 10 million for their digital services.

Major players like Apple, Google, Meta, and Amazon would fall under the purview of the Indian law if approved by parliament. The rationale behind the legislation stems from concerns about the concentration of power in the digital market, with a few large companies exerting significant control.

The Digital Competition Bill aims to address this imbalance by mandating fair and non-discriminatory practices among digital companies. Violations could incur penalties of up to 10% of a company’s global turnover, mirroring the enforcement mechanisms of the EU’s Digital Markets Act.

Specifically, the proposed law prohibits the exploitation of non-public user data, favoritism towards proprietary products or services, and restrictions on users’ ability to download or use third-party apps. It also mandates freedom for users to select default settings.

Feedback on the law proposal will undergo review by the Ministry of Corporate Affairs, headed by Minister Nirmala Sitharaman, following India’s recent elections.

Several tech giants operating in India, including Amazon and Walmart’s Flipkart, have faced scrutiny over alleged anti-competitive practices. Google has encountered antitrust fines and legal battles regarding its Android mobile operating system, while both Google and Apple have faced allegations of promoting their in-app purchase systems to the detriment of competitors.

Despite these challenges, all companies deny any wrongdoing as they navigate the evolving regulatory landscape in one of the world’s largest and fastest-growing digital markets.