Lobbyists representing major US tech companies have reportedly asked India to reconsider its proposed antitrust laws.
Reuters reported on Tuesday (May 28) citing a letter from a lobbying group representing Amazon, Apple and Google, that the companies argued that bans on data usage and restrictions on preferential treatment for partners could increase costs for users.
The request reportedly comes after an Indian government committee proposed new anti-monopoly laws in February, citing the growing market power of a few digital giants.
According to the report, the proposed “Digital Competition Bill” is similar to the European Union's landmark Digital Markets Act, which would apply to large companies with global sales of more than $30 billion and at least 10 million local users for their digital services, a condition that would apply to tech giants such as Amazon and Google.
According to the report, the law would prohibit companies from misusing users' private data, promoting their own services over competitors, and restricting the download of third-party apps.
According to reports, in a letter to the Indian Ministry of Corporate Affairs, the US India Business Council (USIBC) said companies are using these tactics to introduce new product features and enhance security for their customers.
According to reports, the letter from the USIBC, a unit of the US Chamber of Commerce, argues that the Indian bill is “much broader in scope” than the EU bill.
“The targeted companies are likely to reduce their investments in India, pass on higher prices for digital services and reduce the scope of their services,” the letter said, according to the report.
USIBC did not respond to PYMNTS' request for comment.
The effort comes as tech giants face antitrust pressure around the world. Apple, for example, last week appealed a roughly $2 billion antitrust fine imposed on it by European regulators for abusing its power in the streaming music market.
In April, Google sought to dismiss the Justice Department's antitrust lawsuit, arguing that the government had not proven that the company controlled 70% of the digital advertising market.
The department sued Google last year, alleging that the company had illegally taken control of the online advertising division and demanded that the company be broken up.
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