No mixing of personal data, anti steering and more: Decoding obligations for Big Tech in Digital Competition Bill

The draft digital competition bill brings in additional obligations for large technology majors

The Ministry of Corporate Affairs on March 12 released the draft of the Digital Competition Bill, a proposed legislation that aims to address anti-competitive practices of Big Tech companies, for public consultation.

The bill brings in additional compliance requirements for major technology companies, which the bill refers to as Systematically Significant Digital Enterprises (SSDE). A company will have to declare themselves as SSDEs based on it's global turnover, gross merchandise value, number of users in India and so on.

Also read: 10% of global turnover, 3 years imprisonment: Big Tech stares at hefty penalties in Digital Competition Bill

Let's take a look at what these additional obligations —

No self preferencing: The bill mandates that a SSDE will not favour its own services or products or those of its related parties, or third-parties with whom SSDEs collaborate when it comes to manufacture or sale of products or services.

Checks on usage of non-public data of users: The bill puts a restriction on SSDEs, from leveraging the non-public data of its business users to gain an unfair competitive advantage against those users operating on the SSDE's own platform. The bill will also bar major technology companies from "cross using" personal data of business users and end users and its usage by any third party without the users' consent (as defined in the DPDP Act).

Allow installation of third party apps: The bill will direct SSDEs to not restrict, or create barriers for users from downloading, installing or operating or using any third-party applications on its platforms/services. Such companies should also allow end users and businesses to "choose, set and change default settings", the bill said.

Anti-steering: In a bid to promote fair competition and preventing large technology companies from unfairly leveraging its platform to restrict the marketing or promotional activities of its business users, the bill has introduced the concept of anti-steering.

Anti-steering is to prevent or limit business users from guiding their customers or end-users towards alternative services. The bill says that SSDEs, cannot put such restrictions, unless "such restrictions are integral to the provision of the Core Digital Service of the SSDE".

In the bill, the ambit of "core digital service" includes those offering online search engines, online social network services, video-sharing platform services, interpersonal communications services, operating systems, web browsers, cloud services, advertising services, and online intermediation services.

Also read: Elon Musk's X backed India's proposal to bring in new law to tackle Big Tech

Bar on tying and bundling: The bill says that SSDEs will not incentivise business or end users of a digital service, to use their other products or services. The restriction not just applies in case of the company itself, but also extends to related parties, and third parties with whom the company may have ties with.