Tech Giants Google, Amazon, Apple Lobby Group Opposes India's EU-Like Antitrust Proposal

A U.S Lobby group representing some of the biggest tech giants in the world like, Apple, Amazon, Google has asked India to reconsider its proposal of EU-like competition law, arguing that regulations against the data use and preferential treatment of partners could lead to rise in user costs, a letter shows.

As reported by Reuters, In February, a government panel cited the increased market power of a few big digital companies and proposed imposing obligations on them under a new antitrust law which will complement existing regulations whose enforcement the panel said is "time-consuming".

India's "Digital Competition Bill" is on the lines of EU's landmark Digital Markets Act of 2022. It applies to big firms or large corporations, including those with a global turnover exceeding $30 billion, whose digital services cater to at least 10 million local users, thereby encompassing some of the biggest tech companies in the world under its gambit.

It prohibits companies from exploiting non-public data of its users and promoting their own services over their competitors. It also abolishes constraints on downloading third-party apps.

The Reuters reported that, The U.S.-India Business Council (USIBC), affiliated with the U.S. Chamber of Commerce, conveyed in a letter to India's Corporate Affairs Ministry, dated May 15, that these tactics are employed by companies to introduce new product features and enhance user security. Curbing them will hit their plans, the U.S Chamber of Commerce said to the ministry which is working on the law.

The draft Indian law is "much further in scope" than the EU's, says the letter, which has not been made public but was seen by Reuters.

The letter further says that, "Targeted companies are likely to reduce investment in India, pass on increased prices for digital services, and reduce the range of services".

India, with a population of 1.4 billion and an expanding affluent class, presents a lucrative market for major tech firms. Apple CEO Tim Cook recently said that the company achieved a "revenue record" in India during the March quarter, despite a 4% decline in its global revenue.

The Indian panel emphasized the necessity as few large digital organizations "wield immense control over the market". Similarly in the EU, it recommends penalties of up to 10% of a company's annual global turnover for violations, stated Reuters.

For years, the Competition Commission of India (CCI) has been investigating major tech firms.

In 2022, the CCI imposed a fine of $161 million on Google and ordered it to stop restricting users from uninstalling its pre-installed apps and allowing downloads outside its app store. Google refutes any wrongdoing, asserting that such restrictions boost user security.

Amazon is also under antitrust investigation for allegedly favoring specific sellers on its Indian website, a claim it denies. Apple similarly refutes allegations but faces investigation for alleged abuse of its dominant position in the apps market.

However, a coalition of 40 Indian startups supports the new Indian law, believing it could address monopolistic behaviors of dominant digital platforms and create a level playing field for smaller companies as reported by Reuters.

While no specific timeline is set, the Indian government will review feedback on the proposal before seeking parliamentary approval, with or without amendments.