In India, this has significant implications for the debate on the draft digital competition law, which aims to promote user freedom, competition, innovation and consumer empowerment by allowing the use of third-party apps on Core Digital Services.
Big Tech’s dominance in the global digital marketplace, particularly through its app store policies, has faced scrutiny and regulatory challenges.
The Competition Commission of India (CCI) imposed two penalties of ₹1,338 crores and ₹936 crores on Google for abuse of its dominant position in the Android mobile devices ecosystem and its play store and in-app payments, respectively. These penalties reflect growing concerns about Big Tech’s market power and its impact on competition and consumer choice.
The draft digital competition law sets specific criteria for determining which enterprises qualify as SSDEs. These include user thresholds (core digital service provided by the enterprise has at least 1 crore end-users or at least 10,000 business users) and financial thresholds (turnover in India of not less than ₹4,000 crore, or global turnover of not less than $30 billion).
By focusing regulatory scrutiny on Big Tech meeting these thresholds, the draft law effectively targets entities that wield substantial influence in the digital ecosystem, but without unduly burdening smaller players. This targeted approach enhances the effectiveness and fairness of the regulatory framework.
At the heart of the draft digital competition law’s recommendations lies the principle of ensuring user choice and promoting a level-playing field. Currently, Big Tech often dictates which apps users can access on their platforms. This stifles competition and limits consumer choice.
Users are confined to a narrow selection of apps and services pre-approved by technology platforms. This creates market conditions for duopolies, with dominant players deciding the rules. By mandating the freedom for users to integrate third-party apps into Core Digital Services, the draft law seeks to break this cycle.
This integration also fosters innovation and entrepreneurship within the digital marketplace. By opening up Big Tech platforms to external developers, the draft law creates opportunities for smaller app developers and startups to compete on a more level-playing field. This drives innovation as developers strive to create compelling apps that attract user attention and loyalty.
Moreover, allowing third-party apps on Core Digital Services enhances interoperability and data portability. Interoperability enables seamless interaction between different apps and platforms, facilitating smoother user experiences and healthy competition.
Data portability, on the other hand, empowers users to switch between services easily while retaining their data, thereby reducing lock-in effects and enhancing consumer choice.
Big Tech corporations may argue that mandating the integration of third-party apps could compromise security and user experience. However, the Parliament of India has taken steps to address this concern.
The passage of the Digital Personal Data Protection (DPDP) Act and the deployment of Digital Public Infrastructure (DPI) as a foundational tech layer demonstrate the government’s commitment to safeguarding user data and promoting a secure digital environment.
The architectural principles of DPI prioritise interoperability, data portability and user control over personal data. These align closely with the goals of the draft digital competition law.
By anchoring these principles in the legislative vision of the DPDP Act, the draft digital competition law seeks to establish a comprehensive framework that not only promotes competition but also protects user privacy and security.
The DPDP Act provides robust mechanisms for enforcing data protection standards, especially data empowerment and protection architecture (DEPA), consent management systems, and penalties to hold companies accountable for any breaches of user privacy.
By integrating these provisions into the regulatory framework governing Big Tech, the draft digital competition law ensures that user data remains protected, regardless of which apps are integrated into Core Digital Services.
In essence, while Big Tech may raise concerns about the risks associated with third-party app integration, India’s government has already laid the groundwork to address these concerns through comprehensive data protection legislation and deployment of DPI.
By building on these foundations, the draft digital competition law aims to strike a balance between promoting competition and safeguarding user interests.
As India navigates the complexities of regulating Big Tech, ensuring user choice remains paramount in shaping a fair and equitable digital marketplace. For New Delhi, that represents the Little Citizen’s view, even if it is not the Mountain View.
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