India Business Law Journal – March 2024

Google not so frugal

Tech giant faces ire for delisting apps

As per figures from the World Bank, there has been a steady increase in the number of internet users in India, with 2021 data putting the number at 46%. And with the average Indian accessing the internet with his/her phone, Google’s Android mobile operating system with its clear dominance globally plays a ubiquitous role. From search queries to email services, from educational tools to digital payments, Google’s suite of products and services has become integral to the daily lives of millions of Indians, shaping India’s digital landscape.

However, Google’s ability to call the shots was recently called into question by the government when it delisted a number of popular domestic apps, including Shaadi.com and Naukri.com.

Our Cover story highlights how the government intervened to prevent Google from delisting these apps from its Play Store, aiming to safeguard local startups, given Google’s dominant market share. Prompted by complaints by the aggrieved app developers, the Competition Commission of India (CCI) initiated an investigation into Google’s alleged unfair in-app pricing policy.

The CCI found Google’s service fee policy unfair and discriminatory, prompting scrutiny over charges levied on app developers. The story explores the powers and the relief the government and competition regulator can provide to the apps.

Close on its heels comes another tech-driven spotlight story, Embracing artificial intelligence, which reflects on the potential of AI in the legal domain. The article emphasises that AI holds the promise of increasing accuracy and reducing manual labour across various functions such as contract generation, analysis and legal research.

The authors explain how initially, despite rigorous testing, the responses generated by the AI GPT system lacked legal nuance and were not reliable. But through a refinement process that took eight months, and the efforts of five senior data scientists and four lawyers, they were able to create a robust AI-driven legal contract analysis tool with an 85% accuracy.

The article anticipates the disruptive potential of AI in the legal industry and suggests that augmentation of existing legal services with AI might be a more appropriate approach than a complete overhaul and outright replacement.

In A call to action, we delve into the dilemma of counterfeiting, which affects various industries leading to loss of sales, brand dilution and often serious consequences for consumers’ health and safety.

India has robust legal frameworks to protect intellectual property from counterfeiters, but faces challenges given the inordinate delays in obtaining protective orders, as well as unnecessary documentation by authorities, overburdened courts and further difficulties in prosecuting perpetrators.

A comprehensive and proactive approach to combat counterfeiting involves legal, technological and collaborative strategies to protect brands and consumers.

In Any hangups? we look at India’s booming telecoms sector. India’s Telecommunications Act of 2023 promises radical reforms to modernise the country’s outdated telecoms regime.

While aiming to streamline activities and regulate evolving technologies, it faces criticism for potential privacy breaches, regulatory overreach, lack of specificity and safeguards against misuse. Concerns include government powers to intercept messages and suspend services, prompting worries over privacy invasion.

However, the act introduces dispute resolution mechanisms and regulatory sandboxes for innovation. Spectrum allocation methods and impacts on over-the-top (OTT) players also stir debate. Despite challenges, the act signifies a long-overdue step towards modernising India’s telecoms landscape.

In our Expert briefing, experts from Obhan & Associates, Spice Route Legal, Remfry and Sagar, Kaizen Law, and Shivadass & Shivadass Law Chambers come together to discuss facets of data privacy in India, including the challenges businesses face in complying with disparate data protection laws across multiple jurisdictions globally. Key considerations such as data inventories, legal bases for processing, individual rights, security measures, and international data transfers are highlighted.

Emphasising the need for tailored compliance strategies, the importance of ongoing adaptation to evolving regulatory frameworks is underscored amid the increasing use of personal data in an ever-changing technological landscape.

The authors call on technology companies to prepare by integrating industry-certified measures to monitor unauthorised data leaks, carrying out regular data checks, and having grievance mechanisms in place that are quick and responsive.