Coalition of Google, Amazon, and Apple opposes India’s EU-inspired antitrust proposal

A U.S. lobbying organization representing tech giants Google, Amazon, and Apple has urged India to reconsider its proposed EU-inspired competition legislation, arguing that regulations targeting data use and preferential treatment of partners could lead to higher user costs, according to a letter.

Citing the growing market dominance of a few major digital companies in India, a government panel in February recommended imposing new obligations on them under a proposed antitrust law. The panel noted that enforcing existing regulations is “time-consuming.”

India’s proposed “Digital Competition Bill” draws parallels with the EU’s Digital Markets Act 2022. It will apply to large companies, including those with a global turnover exceeding $30 billion and digital services with at least 10 million local users, thereby bringing some of the world’s largest tech firms within its scope.

The bill aims to prohibit companies from exploiting non-public user data and promoting their own services over competitors. It also seeks to eliminate restrictions on downloading third-party apps.

The U.S.-India Business Council (USIBC), a part of the U.S. Chamber of Commerce, expressed concerns in a letter to India’s Corporate Affairs Ministry, which is overseeing the law’s development. The USIBC argued that these strategies are vital for launching new product features and enhancing user security, and restricting them could impact their plans.

The letter, not publicly released but reviewed by Reuters, highlights that the draft Indian law extends beyond the scope of the EU legislation.

The USIBC warned that targeted companies may reduce investment in India, resulting in increased prices for digital services and a reduced range of offerings.

Despite Reuters’ inquiries, neither the USIBC nor the Corporate Affairs Ministry, Apple, Amazon, or Google responded.

India, with its 1.4 billion population and growing affluent class, remains a lucrative market for big tech firms. Apple CEO Tim Cook recently reported a “revenue record” in India during the March quarter, despite a 4% global revenue decline.

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