ADIF update: Representation before Parliamentary Standing Committee on Finance, urging better regulation against online fraud through search ads, and more
ADIF’s work and latest activities
We released a detailed landscape study of the App Store policies of Big Tech… and their adverse effects on Indian developers and users. The study included detailed information on regulatory actions and proposed legislation worldwide targeting the control of these big techs that control the mobile app ecosystem globally.
Titled ‘Towards Regulating App Stores,’ the report had been prepared by ADIF and The Quantum Hub, a leading public policy consulting firm.
Read or download the full report here.
… and shared it with the Parliamentary Standing Committee on Finance. In a letter to the committee, we summarized the anti-competitive behaviour of big tech companies running app stores and requested an opportunity to depose before the committee to share our collective concerns and learnings.
Following the representation, ADIF was invited to depose before the committee on May 19, 2022.
Jayant Sinha @jayantsinhaChaired meeting of the Parliamentary Standing Committee on Finance, wherein we heard views on competitive conduct of Big Tech companies. Representatives from many industries participated: - Hospitality - Restaurants - Traders - Digital Media & Newspapers - Startups (1/3) https://t.co/lr9vH4NFqM
We became a party to the CCI’s probe against Apple. The complaint was originally filed by Jaipur-based non-profit ‘Together We Fight Society’ arguing that Apple’s imposition of a high in-app fee and other restrictions hurt competition by raising costs for app developers and customers, while also acting as a barrier to market entry.
Read the full press release here.
ADIF offered support for Match Group's legal battle against Google. The company’s complaint against Google is that the giant is misusing its monopoly by requiring app developers to use Google's billing system and then taking up to a 30% cut on any in-app purchases.
Through their antitrust battle against the tech giant, Match Group has garnered a temporary agreement so that any in-app payments made in their apps Tinder and Hinge will be made using a third-party system.
Read ADIF’s full statement here.
ADIF urged MeitY for better regulation to prevent online fraud through search ads… There have been several incidents of false advertising on Google where searches for the helpline numbers of certain companies throw up false and misleading ads at the top of the search results. Some of the instances we could identify where a search of a company on Google leads to fraud ads are Mobikwik, Paytm, and Bajaj Finserv.
We highlighted another major concern: tech firms, such as Google, charge hefty fees to host these ads and make profits from them.
Calling attention to the fact that the problem is not simply financial losses but also of mental stress and trauma inflicted yearly on Indians, our letter to MeitY noted that these fraudulent ads contribute a significant part of the revenue of these tech firms all the while exposing users to high risks.
Read the full letter here.
… and voiced support for govt’s focus on ease of exit. Union minister Piyush Goyal during his address at the Global Unicorn Summit focused on making it easier for businesses to exit. The Indian government’s shifting focus to making it easier for businesses to exit is extremely heartening and would greatly help build the industry’s confidence.
Sijo Kuruvilla George, the Executive Director of ADIF, said:
“Our founders should be able to build in India for the world. There is a need for indexing the options and opportunities available in India on par with the global ecosystems.”
ADIF in the news
Mohammed Shafeeq of IANS wrote about the current challenging situation in the startup ecosystem where ADIF’s view that the slowdown is a short-term pause as investors are evaluating the global evolving situation made the news.
"Early-stage dealmaking is robust still. If you are an early-stage company or a founder looking to start afresh, all you need to do is stay focussed on generating customer traction and building value.
Funding disruptions, if at all, are most likely to happen only with late-stage rounds. As a guidance note to founders, in the early stages, it's more important to get the right terms than to chase valuations. Good people on your cap table are your biggest asset and leverage.”
Latest from our blog
What India must do to unlock the next phase of its digital economy
Reaping the benefits of a digital economy will not only require ease of creating, scaling and exiting businesses but also policies that can facilitate new jobs and retrain workers.
Read the full post here.
SaaS Sector: Potential and Prominence in India
A key requirement for the sector to reach its potential is a sufficient level of investment in growth.
Read the full post here.
That’s all for this week, thank you for reading!
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Content & Editorial, ADIF