Policy Wrap: ADIF lauds Epic’s victory over Google, India drives discussions on ethical AI use in the GPAI summit, Indian consumer tech market could reach $300 billion by 2027, and more

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ANTITRUST

ADIF, along with the Indian startup ecosystem, see Epic’s victory over Google in the antitrust case as a big positive

Epic Games gained victory over Google in the hugely popular antitrust dispute, a decision that might have significant effects on the app store economy. In the dispute, Epic Games claimed that Google was acting as a monopoly in its Play store.

In its case, Epic Games claimed that Google intentionally killed competition by charging developers exorbitant fees of upto 30% for in-app purchases.

According to Epic Games, Google unlawfully links its Play store and billing services, so in order for developers' products to be listed in the store, they had to use both.

Additionally, attorneys representing Epic Games demonstrated that Google engaged in anti-competitive behaviour. One of the more dramatic claims was that Google has a mechanism in place to remove internal messages and texts in order to hide its anticompetitive actions.

The court will start deliberating over potential remedies in January next year. Should the decision stand, developers might have more control over how their apps are marketed and how much money they can generate from them.

The decision may also serve as a model for future antitrust trials involving Big Tech firms globally, including Google's own.

Indian software developers and startup owners are celebrating Epic Games' victory over Google, citing a sense of "vindication" and anticipating "positive ripple effects" on cases akin to theirs in India and other countries.

The judgement aligns perfectly with ADIF's steadfast commitment to fostering equitable competition in the business ecosystem. ADIF acknowledges the pivotal role of startups in propelling economic growth and actively promotes innovation, creating an environment conducive to the growth of startups, which the Epic Games verdict will definitely facilitate.

India has been actively fighting against dominant entities resorting to unfair and discriminatory practices, especially in the last few years. This is effectively illustrated by the judgements passed by the CCI in recent times against Bigtechs abusing their dominance

ADIF has been working assiduously against the exorbitant commissions charged by Google for in-app purchases. ADIF believes that this will go a long way in promoting a fair, transparent, and contestable digital ecosystem, which will be beneficial for our nation and our developing start-up industry.

Apple maybe handed a huge penalty by EU antitrust order in its fight with Spotify

EU regulators are finalising a ruling that would ban Apple's practice of preventing music providers from discouraging its customers from using the App Store in favour of other subscription services. Apple may also face a significant fine from EU authorities.

The decision is expected to be made early in the following year, and Apple may be fined up to 10% of its annual sales.

The investigation was initiated by a complaint filed by Sweden's Spotify Technology about four years ago. The company said that it was compelled to increase the monthly subscription price in order to pay for expenses related to Apple's App Store regulations.

Earlier this year, the European Commission filed a chargesheet against Apple, claiming that the conditions are baseless and could result in higher costs for customers.

Apple attempts to resolve further antitrust woes as it offers to let rivals access tap-and-go tech in EU antitrust case

According to reports, Apple has offered to let competitors access to its tap-and-go mobile payment systems, which are used for mobile wallets. This might resolve EU antitrust allegations and avert a potentially large fine.

Last year, the EU competition watchdog accused Apple of restricting competitors' use of its tap-and-go Near-Field Communication (NFC) technology, which made it harder for competitors to create competing services on Apple products.

The European Commission will probably wait until next month to get input from competitors and consumers before determining whether to accept Apple's offer.

In Europe, nearly 2,500 institutions as well as over 250 fintechs and challenger banks accept Apple Pay. Tap-and-go payments on iPhones and iPads are made possible via the NFC chip.

POLICY & REGULATIONS

India drives discussions on ethical AI use and guardrails in the recently concluded GPAI Summit 2023

Global Partnership on Artificial Intelligence (GPAI), aimed at guiding the responsible development and use of artificial intelligence, grounded in human rights, inclusion, diversity, innovation, and economic growth, constitutes 29 nations including the US, UK, EU, Germany, Israel, Singapore, Australia, Belgium, France, and others.

In the recently concluded GPAI meet, the New Delhi Declaration was unanimously adopted by all the 29 nations. The proclamation committed to developing AI applications in healthcare and agriculture jointly and taking the needs of the Global South into account when developing AI.

Participating countries also agreed in the declaration to use the GPAI platform to develop a worldwide framework for AI trust and safety as well as to make AI benefits and solutions accessible to everyone. In order to complete the suggested framework in six months, India also submitted a proposal to host a GPAI Global Governance Summit.

During the next few months, as India assumes the presidency of GPAI, the focus will be on combining expert resources with those of the Organisation for Economic Co-operation and Development (OECD) to broaden the scope and improve the capacity to identify the most effective approaches to the governance and application of AI for the benefit of society.

On January 10, the Centre will present its official AI policy as part of the India AI Programme. The Korea Safety Summit, scheduled for mid-2024, will serve as a platform for additional global debates on the creation of AI rules.

INDIAN ECONOMY

Indian consumer tech market likely to see a threefold increase to $300 billion by 2027

According to a recently published report, the size of the Indian consumer internet segment will almost triple to $300 billion by 2027 from its current level, with the fashion, mobility, and media sectors leading the way.

The report also mentions that the online retail market is expected to reach $160 billion by 2028 and grow at a rate of somewhere between 23% and 25% annually.

By the end of 2023, the online retail market is predicted to be worth $57–60 billion, up 17%–20% from the previous year. In Indian online shopping, this translates to 240 million to 260 million annual transacting shoppers. However, online purchasing will still account for only 5 to 6 percent of total retail spending. By contrast, internet retail accounts for about 35% of retail spending in China and roughly 24% of total retail spending in the US.

By 2028, 60–70 million families in India are expected to fall into the upper-middle and upper-income categories, which will then likely make up at least 80% of e-retail expenditure.

Quick commerce currently drives about 50% of online grocery shopping. Although metros and tier-1 cities account for 80% of quick commerce volume, more and more shoppers are coming from non-metropolitan areas, with 70% of them originating from tier-2 cities and beyond. Additionally, over 30% of shoppers are younger, having been born in 1997 or later, according to the report. Around 30 percent of internet buyers were from low- to low-middle-class backgrounds.