US Lobby Group, Representing Google, Amazon, And Apple, Opposes India's EU-Like Antitrust Proposal

US Lobby Group, Representing Google, Amazon, And Apple, Opposes India's EU-Like Antitrust Proposal

A lobby group from the United States representing tech giants Google, Amazon, and Apple has urged India to reconsider its proposed competition law, similar to that of the European Union. They argue regulations against data use and preferential treatment of partners could raise user costs, a letter shows.

Referring to the growing market dominance of a handful of major digital corporations in India, a government panel suggested in February the imposition of obligations on them under a new antitrust law. This law would complement existing regulations, with the panel noting that enforcing them is "time-consuming."

India's "Digital Competition Bill" is on the lines of the EU's significant Digital Markets Act of 2022. It is set to encompass major corporations, including those with a global turnover exceeding $30 billion and whose digital services cater to at least 10 million local users, thereby subjecting some of the largest tech firms worldwide to its regulations.

The bill proposes to ban companies from exploiting non-public user data and from favoring their own services over competitors'. Additionally, it aims to eliminate restrictions on downloading third-party apps.

The U.S.-India Business Council (USIBC), affiliated with the U.S. Chamber of Commerce, emphasized in a letter to India's Corporate Affairs Ministry, dated May 15, that these strategies are crucial for companies to introduce new product features and enhance user security. Restricting these practices would impede their plans, the letter stated.

According to the letter, which has not been publicly released but was viewed by Reuters, the draft Indian law extends much further in scope compared to the EU's legislation.

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

The USIBC, which urged India to reconsider the proposed law, did not respond to queries from Reuters, nor did the Corporate Affairs Ministry, Apple, Amazon, or Google.

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

The Indian panel asserts that the new law is necessary because a few large digital enterprises exert significant control over the market. Similar to the EU, it recommends penalties of up to 10% of a company's annual global turnover for violations.

The Competition Commission of India (CCI) has been conducting investigations into big tech firms for several years. In 2022, the CCI imposed a fine of $161 million on Google and ordered

it to cease restricting users from uninstalling its pre-installed apps and allow downloads without using its app store. Google refutes any wrongdoing and argues that such restrictions enhance user security.

Amazon is also under scrutiny in an antitrust investigation for allegedly favoring specific sellers on its Indian website, an allegation the company denies. Similarly, Apple refutes allegations but faces an investigation for allegedly abusing its dominant position in the app market.

Despite the denials from these tech giants, a coalition of 40 Indian startups has voiced support for the new Indian law. They believe it has the potential to address monopolistic practices by dominant digital platforms and establish a fair playing field for smaller companies.

While there is no fixed timeline, the Indian government will review feedback on the proposal before seeking parliamentary approval, with or without modifications.