Google has delisted well-established mobile applications from its Android Play Store over a dispute on fee payments, raising concerns about digital monopolies. Union Minister for IT and Telecom asserted that delisting of Indian apps cannot be permitted.
About Digital Monopolies:
- Digital monopolies occur when a few companies, such as e-commerce giants or Big Tech companies, dominate the digital market.
- Examples include Google, Apple, and other major tech firms exerting control over significant segments of the digital landscape.
Threats Posed by Digital Monopolies:
- Anti-competitive practices: Engaging in self-preferencing, restricting third-party applications, and executing mergers and acquisitions to stifle competition.
- Limited consumer choices: Enforcing anti-steering provisions to prevent users from exploring alternatives.
- Data privacy and security: Misusing concentrated user data for surveillance, privacy breaches, and targeted marketing.
- Political Influence: Unregulated media giants can influence democratic processes through echo chambers, misinformation, and controlling online advertising, affecting diversity of thought and political outcomes.
Recommendations (Standing Committee on Finance Report, 2022):
- Systemically Important Digital Intermediaries (SIDIs): Designate leading digital market players as SIDIs and apply specific ex-ante provisions for fair competition.
- Legal and Institutional Framework: Propose the enactment of a Digital Competition Act and the strengthening of the Competition Commission of India (CCI).
- Digital Competition Act: Advocated for new legislation tailored to digital markets ensuring fairness and transparency.
- Anti-steering Policies: Suggested that SIDIs should not condition platform access on the purchase or use of ancillary services not intrinsic to the platform.
Measures to Address Issues with Digital Monopolies:
- Competition Commission of India (CCI): A statutory body under the Competition Act, 2002 to combat anti-competitive practices.
- Consumer Protection (E-Commerce) Rules, 2020: Regulations to safeguard consumer rights on e-commerce platforms.
- Digital Personal Data Protection Act, 2023: Legislation to ensure the privacy and security of personal data.
Ref:Source
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