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US Tech Giants Urge India to Reconsider Proposed Competition Law

A US lobby group representing tech giants Google, Amazon, and Apple has urged India to reconsider its proposed competition law, similar to the EU’s Digital Markets Act (DMA). The group argues that the new regulations, which aim to prevent the misuse of non-public data and preferential treatment of partners, could increase user costs and discourage investment in the country. The draft ‘Digital Competition Bill’ targets large firms with significant global turnover and local user bases, aiming to curb monopolistic practices and promote fair competition.

India’s Corporate Affairs Ministry is working on the bill, which proposes strict penalties for violations, including fines of up to 10% of a company’s annual global turnover. The proposed law addresses concerns about the growing market power of a few dominant digital companies in India. However, the US-India Business Council (USIBC) warns that the legislation’s broad scope could lead to reduced investments, higher digital service prices, and a narrower range of consumer offerings.

Why Does It Matter?

Despite opposition from major US tech firms, a coalition of 40 Indian startups supports the new law, arguing it will help level the playing field and combat monopolistic practices. The Indian government is reviewing the proposal’s feedback and will seek parliamentary approval in the coming months, with or without modifications.

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