The Bill is India’s fourth effort to enact a data protection law and comes in response to the Supreme Court of India’s historic KS Puttaswamy decision from 2017, which identified privacy as a fundamental right.
Source: Current Affairs- Adda 247
The Bill outlines, among other things, the responsibilities of businesses that have access to personal data as well as the rights and obligations of individuals. There is no question that personal data protection laws are necessary. We must be aware of the rights and duties under the Bill as well as how they could affect the competitiveness of Indian enterprises as we get closer to legislative approval of the Bill and its implementation.
The cost of complying with the Bill will be high. It is likely to take a lot of time and money to implement the security and technological protections required by the Bill for some types of businesses. The much-discussed Bill clause that allows the government to impose regulations outlining the Bill will likely be left to determine what this means in practise for businesses.
The European experience also implies that larger and more prosperous businesses have an advantage in compliance since they already have the resources and expertise necessary to put data protection laws into effect. This indicates that newer, smaller businesses spend a disproportionately high amount of money on compliance.
The Bill’s emphasis on user permission might be used as a weapon. Consider how data is used to provide tailored adverts. Companies that have access to huge amounts of customer data may make it more difficult for their rivals to get data, allowing them to deliver customised marketing that benefit consumers.
Source: CNBC- TV 18
There are several ways they can accomplish this. One strategy is to withhold the same data from its rivals while limiting their access to it by invoking user permission and privacy concerns. In reality, Apple enforces this policy, requiring rival companies who sell apps for its iOS operating system to question users for permission to access their personal data. Apple claims that this action protects user privacy. This appears like a strong argument at first glance. Apple hides the fact that its apps do not always present users with the same prompt.
Naturally, businesses are free to use this tactic even in the absence of a data protection regulation. However, with the advent of this regulation, it becomes even more crucial to make sure that businesses don’t use privacy/data protection frameworks to defend actions intended just for their own profit. India is at a turning point. The government has taken several steps in the past year alone to guarantee that the digital economy, particularly smaller Indian firms, continues to develop and that player competition is fostered.
It is crucial to make sure that the various rules complement one another and that new regulations do not increase the gap between participants of various sizes and strengths but instead allow for fair and contestable marketplaces in the coming days as the Bill receives more attention and is discussed.
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