Few IAMAI members approach MCA opposing body's views on digital competition bill

Trade body Internet and Mobile Association of India represents many Indian and foreign digital companies

Feels like deja vu! A few members of the Internet and Mobile Association of India (IAMAI) are again in disagreement with the industry body's views on the draft Digital Competition Bill, and have written to the Ministry of Corporate Affairs registering their opposition.

A couple of weeks ago, in May, IAMAI said that the draft Digital Competition Bill could have adverse effects on Indian startups and other digital enterprises.

However, now in a letter to the Ministry of Corporate Affairs from May 30, companies Bharat Matrimony, Match Group, Hoichoi and Sharechat said, "IAMAI's submission is not reflective of its diverse membership and only a miniscule percentage of these  members opposed the ex-ante provisions advanced by the DCB..."

"By opposing ex ante regulations and suggesting continuation of the ex post regime, IAMAI seeks to maintain the status quo that will allow entrenched players to continue exploiting regulatory gaps to stifle competition and innovation," it added.

To recap, in April 2023, a controversy erupted when IAMAI, whose members include both Indian companies and large foreign companies, argued against the need for a separate digital competition framework aimed at regulating "anti-competitive practices" by Big Tech companies, in a draft submission.

Also read: All you need to know about the tussle at IAMAI on Big Tech, competition law, and elections

Indian entrepreneurs had slammed IAMAI, saying that a digital competition law was indeed necessary and insinuated that the industry body's stance on the matter reflected the composition of its leadership (then composed of members of Big Tech companies).

Post that, many Indian entrepreneurs and a few Big Tech companies had thrown their hats in the ring for industry body's leadership elections. The elections of the trade body saw the ouster of Big Tech members from its leadership, and the current leadership is composed of Dream 11's Harsh Jain as chairperson, Rajesh Magow of MakeMyTrip as the vice chairperson, and Satyan Gajwani of Times Internet as the Treasurer.

What the dissent note says

In the letter, the signatories wrote, "While we share concerns regarding the current financial strength and user spread thresholds outlined in the bill, that may inadvertently encompass startups and other digital enterprises that aren't gatekeepers, this issue can be effectively addressed by advocating for higher thresholds."

"By revisiting thresholds, it can be ensured that only the largest gatekeeper companies fall within the Bill's scope. This can help rein in monopolistic practices of Big Tech while making sure that startups have the space to grow within India and beyond Indian borders, to compete globally," it added.

Earlier, IAMAI in its submission had said, "The current ex-post framework is well-tested and relies on evidence of abuse thereby avoiding the risk of false positives. The proposed ex-ante regulations can dry up venture investments in tech start-ups, as the thresholds under the draft bill would act as a ceiling to the potential scalability of businesses."