IAMAI and Start-up Divide [UPSC Current Affairs]

Indian start-ups have accused the Internet and Mobile Association of India (IAMAI) of propagating views of Big tech companies such as Google and Meta, and there is a growing divide between startups in India and big tech companies. In this article, you can learn why there is a divide between Indian start-ups and the internet body IAMAI from the perspective of the IAS exam.

What is the reason for the divide between Startups and IAMAI?

• Some of the significant founders of Indian startups have accused the Internet and Mobile Association of India (IAMAI) of propagating views of Big tech companies and questioned their organisational structure which is composed of representatives from big tech companies.
• Indian startups are angry over the anti-competitive policies imposed by big tech companies on them.
• The recent episode of tussle emerged after the IAMAI criticised the recommendation to introduce a new law for tackling Big Tech firms’ anti-competitive practices by the Parliamentary Standing Committee on Finance.
• IAMAI also cautioned that if the recommendations of the Parliamentary Standing Committee on Finance are implemented, it will stifle innovation.
• In December 2021, the parliamentary panel recommended measures to curb anti-competitive practices in digital markets, such as ex-ante regulations which require big tech companies to follow certain standards of behaviour to protect consumers as against the post-ante regulations which can be punished only after a breach of law.
• Other recommendations include a proposal for a new digital competition law, and ex-ante regulations for big tech companies by designating them as “systemically important digital intermediaries”.
• Also, the panel asked digital market entities to desist from the following anti-competitive practices that allure consumers to choose them which are: 
  • Anti-steering
  • Deep discounting
  • Self preferencing
  • Search & ranking preferencing
  • Other promotional practices 
• The Internet and Mobile Association of India (IAMAI) opposed these recommendations and termed them as ambiguous which will stifle innovation, competition and benefit to market and consumers.
• However, Indian Startups are strongly in favour of panel recommendations and enacting a strong anti-monopoly Digital Act.

IAMAI and Start-up Divide:- Download PDF Here