U.S. Tech Giants Lobby Against India’s Proposed Competition Law

India is drafting a new competition law, the "Digital Competition Bill," which mirrors the European Union's Digital Markets Act of 2022. This proposed legislation aims to regulate large digital firms with significant global turnover and substantial local user bases. Notably, the bill targets tech giants such as Google, Amazon, and Apple. The law seeks to address concerns around data use and the preferential treatment of partners, issues that have long been contentious in India's rapidly expanding digital market. The U.S.-India Business Council (USIBC), a prominent U.S. lobby group representing these companies, has expressed strong opposition to the bill, arguing that it could lead to increased user costs and disrupt the strategic deployment of new product features and security enhancements.

India's Corporate Affairs Ministry is currently deliberating on the draft law, which could significantly impact the operations of major tech firms in a market of 1.4 billion people. Apple CEO Tim Cook stated that the company reported a "revenue record" in India during the March quarter this month, despite a 4% decline in its overall global revenue. In 2022, India's Competition Commission fined Google $161 million for anti-competitive practices, a decision that underscores the nation's growing scrutiny of tech giants. Google has contested the ruling, maintaining that its policies enhance user security. As India moves forward with its regulatory framework, the response from global tech companies will be critical in shaping the future landscape of digital competition in the country.

Read more