India’s anti-trust regulator has once again cracked the whip on another big tech player this time Meta, the owner of Facebook, Whatsapp and Instagram. The Competition Commission of India (CCI) has imposed Rs 213 crore for ‘forcing’ users of Whatsapp to share data with other Meta companies. The action comes at a time when the US and European regulators are also tightening screws on these companies, which the authorities feel are a threat to data privacy, competition, and fair play in business.
The Indian authorities have in the past also had a brush with these firms amid growing fear of them using their dominant position to put users in non-negotiable situations. Big tech companies’ growing clout and influence is a big concern globally but putting a leash on them is easier said than done, especially for Indian authorities. Most of these companies are US-based and any action on them would be seen from a geopolitical and diplomatic perspective. With President-elect Donald Trump set to take charge soon, India will have to tread more tactfully while dealing with these firms.
There are other reasons why India needs to be more circumspect while dealing with technology companies. India takes pride in the digital public infrastructure it has created, which in turn needs the support of big tech companies global or domestic. If the UPI is a success today, it is because of PhonePe, Google Pay, and Paytm. Both Google Pay and PhonePe are owned by US companies. Amazon remains the biggest e-commerce platforms in the country with Flipkart a home-grown entity now owned by Walmart being the distant second. Both are being investigated by the CCI for their alleged misuse of dominant positions.
Recently, Zomato and Swiggy both homegrown companies have also come under scrutiny of the anti-trust regulator. The CCI has always maintained that while it is mindful of the tendency of big technology companies to monopolise the market, it is also seized of the matter that it cannot outstep its mandate and choke innovations. However, data privacy and security concerns add a new dimension to debate over controlling big tech companies. Given these aspects, the role of the CCI in ensuring fair competition in the market becomes very tricky.