India’s EU-Like Antitrust Law Raises Concerns Among Tech Giants

India’s proposed EU-like antitrust law is creating ripples of concern among major technology firms such as Apple, Google, Meta and Amazon. The new legislation, which is yet to be approved by parliament, sets forth stringent compliance obligations that could significantly impact the business models of these global tech behemoths.

The Indian government is currently reviewing a February report from a panel that suggested the introduction of a “Digital Competition Bill” to supplement existing antitrust laws. This development, first reported by Reuters, highlights the growing regulatory scrutiny on digital markets that are perceived to be increasingly dominated by a few large companies.

A prominent U.S. lobby group has already voiced its opposition to the proposed legislation, apprehensive about the potential business ramifications. The new law targets “systemically significant digital” companies, identified by a domestic turnover exceeding $480 million or a global turnover of over $30 billion, coupled with a local user base of at least 10 million for their digital services.

Related: UK Regulator Investigates Tech Giants’ AI Partnerships Amid Competition Concerns

According to the government panel, the necessity for new regulations stems from the digital market’s growing concentration, which grants a few large entities substantial control over the market dynamics. This concentration, the panel argues, forces smaller digital firms and startups to rely heavily on the larger companies, creating a significant imbalance in bargaining power.

The proposed bill mandates that companies operate in a fair and non-discriminatory manner. Non-compliance could result in severe penalties, with fines reaching up to 10% of a company’s global turnover, mirroring the stringent measures of the EU’s Digital Markets Act.

The tech industry is closely monitoring the progress of this legislation, aware that its enactment could usher in a new era of regulatory challenges in one of the world’s fastest-growing digital markets.