Homegrown fintech giant Paytm has reportedly opposed the Internet and Mobile Association of India’s (IAMAI) final submissions to the Committee on Digital Competition Law (CDCL), contradicting the industry body’s stance on competition law for digital companies.
What Happened? Per an Economic Times report, the IAMAI, which represents companies like Google, Meta, Microsoft, as well as Indian tech firms such as Paytm, Ola, PhonePe, Unacademy, and Byjus, has acknowledged Paytm’s contrasting views in its note to the CDCL.
Furthermore, other Indian startups have also shown disagreement with the IAMAI’s perspectives on digital competition law. This dissent among member companies points to a potential divide between homegrown startups and global tech giants.
The IAMAI, in its submissions to the CDCL, opposed the idea of prescribing ex-ante regulations for digital companies. The association claimed that such measures could stifle the growth of the market and the digital economy overall. It suggested assessing the suitability of ex-ante provisions in the proposed digital competition law after evaluating their impact on investment, innovation, business model diversity, and consumer welfare.
However, many Indian startups stood against the IAMAI’s initial draft views. Consequently, in its final submission, the IAMAI omitted its objections to the recommendations made by the Parliamentary Standing Committee on Finance regarding Big Tech regulation.
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The CDCL was established by the corporate affairs ministry on Feb. 6 to determine if a separate Digital Competition Act is necessary and to draft such legislation.
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