Only anti-competitive practices to be under lens: Government

The government doesn't intend to impose any stringent rules on companies in the Big Tech sector, including Google, Apple, Amazon, and Microsoft. Senior officials told Financial Express that the government will only examine competition-related issues as they arise because it does not want to stifle innovation by delving into micro-issues like algorithms, which are crucial to the development of ecosystem by technology players.

Instead of drafting a broad piece of legislation intended to regulate everything, the government would take a case-by-case approach to investigating anti-competitive practises.

The issue of some sort of regulatory framework for Big Tech companies has resurfaced, and the BJP MP Jayant Sinha-led Parliamentary Standing Committee on Finance is looking into it. In a meeting with Sinha last week, representatives of domestic tech startups like Flipkart, Paytm, Oyo Hotels and Homes, Ola, Zomato, Swiggy, and MakeMyTrip brought up the Big Tech companies' anti-competitive behaviour. Big Tech company representatives are also scheduled to meet Sinha soon to express their opinions on the matter.

According to officials, the main problem raised by domestic players relates to algorithms, which they believe are created by Big Tech firms in a way that prevents them from having a level playing field.

Since Google, for example, controls both the front end and the search engine, their own apps are always given preference when users are presented with options. Another issue is the up to 30% commission that Google or Apple may charge for in-app purchases.