After weeks of controversy and internal conflicts, the Internet and Mobile Association of India (IAMAI) has reportedly submitted its final arguments to the Committee on Digital Competition Law (CDCL). This move comes as Indian startups have criticized the industry body for allegedly favoring Big Tech.
The CDCL was established in February by the Ministry of Corporate Affairs (MCA) to assess the need for a separate Digital Competition Act in India and to draft one.
According to reports, IAMAI rejected the appeal for ex-ante regulations in its submissions. The industry body argued that such measures could impede growth in relevant markets and have a negative impact on the overall digital economy.
IAMAI suggested that the suitability of ex-ante provisions in a proposed digital competition law should be evaluated based on their impact on investment, innovation, business model diversity, and consumer welfare.
However, the industry body has not changed its stance on the recommendations made by the Parliamentary Standing Committee on Finance regarding the regulation of Big Tech. IAMAI stated that “pre-emptive standards coupled with rigid and size-based designation mechanisms risk having an adverse impact on investments, innovation, consumer choice, and welfare.”
IAMAI also criticized the panel’s suggestion of identifying Systemically Important Digital Intermediaries (SIDIs), stating that it could harm competition in the digital ecosystem.
The controversy surrounding IAMAI’s alleged support for Big Tech interests has led to demands for changes in the leadership of the industry body. Tech startup founders accused IAMAI of favoring Big Tech and called for the establishment of a parallel industry body that would protect India’s startup ecosystem without any influence from large tech companies.
The submission of IAMAI’s arguments to CDCL coincides with reports that startups are exploring the creation of an alternative industry body to safeguard their interests. The response of CDCL to IAMAI’s recommendations and the concerns raised by tech startups remains to be seen.
