Policy Wrap: Google to pay $700 million to settle a lawsuit, DPDP rules may be released within a fortnight, Generative AI could add a total of $1.5 trillion to India's GDP by FY30, and more
Policy Wrap: Google to pay $700 million to settle a lawsuit, DPDP rules may be released within a fortnight, Generative AI could add a total of $1.5 trillion to India's GDP by FY30, and more
ANTITRUST
Google to pay $700 million to US consumers and states to settle a lawsuit accusing the Big tech of unfair practices in Play store
As part of an antitrust settlement with U.S. states and consumers, Google will reportedly pay $700 million and redesign its Play app store to promote greater competition, the firm announced in a federal court on Monday in San Francisco.
As per the settlement, Google is contributing $630 million to a consumer settlement fund and $70 million to a state-use fund.
Google was accused of overcharging customers by imposing unlawful restrictions on the Android app store's app distribution and charging exorbitant fees for in-app purchases.
"The changes Google is required to adopt will result in more innovation among app developers and lower prices for consumers, and that was always our number one goal," Attorney General Josh Stein stated on Tuesday.
He also mentioned that no other U.S. antitrust enforcer has yet been able to secure remedies of this magnitude from Google or another significant digital platform.
According to the lawsuit, Google suppressed rivalry with its Android app store in an effort to increase revenue.
The state solicitors general claimed that Google's practices unduly increased the cost of digital transactions within apps that users of Android smartphones downloaded from the Play Store.
Adobe, Figma withdraw $20 billion deal after hitting regulatory roadblocks
Due to antitrust issues in Europe and the UK, Adobe shelved its $20 billion deal with cloud-based designer platform Figma on Monday. This would have been one of the largest buyouts of a software business.
Announced in September of last year, the cash-and-stock deal was the most recent to come under intense scrutiny from authorities concerned about Big Tech acquisitions that involve startups viewed as potential competitors or threatens to increase the market dominance of dominant businesses.
Adobe has agreed to pay Figma a $1 billion termination fee.
The EU's concerns about potential reduction of competition were echoed by Britain's Competition and Markets Authority (CMA), which stated that the pact will hinder innovation for software used by a large majority of UK digital designers.
The CMA was in the news recently for opposing Microsoft's $69 billion acquisition of Activision-Blizzard.
DATA USAGE & PRIVACY
Digital Personal Data Protection (DPDP) rules may be released within a fortnight
The government may release the administrative rules under the Digital Personal Data Protection (DPDP) Rules within the next two weeks and announce the final version of the bill by the end of January 2024.
Senior representatives from the Ministry of Electronics and Information Technology (MeitY), Government of India, met with executives from social media and internet intermediaries on Wednesday. During the meeting, key topics like child gating, the consent architecture that needs to be framed, and the rights and responsibilities of data principals were covered.
The DPDP, which was passed in August of this year, requires that any business or individual that collects, manages, or uses data from other users, have their explicit consent by informing them of the reasons for which the data is being used.
Additionally, the DPDP Act requires that these businesses that gather, handle, or process data adhere to the commitment for which consent was received.
After five years of development, the Act came into effect in August earlier this year with the President's assent. The executive rules, which specify the guidelines for implementing the law, have not yet been released by the administration.
X, adult content websites under the scanner of the Digital Services Act in the EU
As part of its initial investigation under the Digital Services Act (DSA), the European Union is looking into social networking platform X for possible violations of duties.
Large online platforms and search engines are required by the DSA, which went into effect in November of last year, to take stronger action against unlawful content and threats to public safety.
The investigation will concentrate on preventing the spread of illicit content within the EU and evaluating the efficacy of steps taken to prevent the manipulation of information, such as the "community notes" system.
X's "Community Notes" function, which was released earlier this year, lets users flag erroneous or misleading content in posts by leaving comments. This effectively crowdsources fact-checking, eliminating the need for a dedicated crew of fact-checkers.
The investigation will also look into several facets of the business, such as the data access that X offers to researchers.
The European Union on Wednesday also added three adult content organisations to its list of businesses that will be subject to strict regulations under the DSA.
The Digital Services Act (DSA), which replaced the previous regulations, mandates that businesses manage risk, submit to external, independent audits, and exchange data with government agencies and academic researchers.
The EU had named 19 companies in April under the regulations, including two Meta Platforms divisions, two Microsoft companies, X, and Alibaba's AliExpress.
These corporations will be subject to fines of up to 6% of their worldwide sales if they don't take immediate action to combat misinformation, provide consumers with greater protection and choice, and guarantee better child safety.
ONDC
ONDC ties up with bigger players to facilitate seamless services
Meta launched a cooperation with Open Network for Digital Commerce (ONDC), a government-backed e-commerce network, to upskill small businesses and use Meta's business and technical solution providers for smooth, conversational buyer and seller experiences on Whatsapp.
ONDC will help the businesses become seller apps and onboard onto their network.
As part of the collaboration, Meta will also improve the services provided by Sahayak, the ONDC's Whatsapp chatbot for seller support.
As per ONDC’s CEO, T Koshy, big businesses have the engineering know-how to support individuals in enhancing their potential. Through this relationship, small firms will be able to take advantage of the robust technical tools that larger companies like Meta bring to the table in order to compete on an equal footing.
In addition to making the network possible, it will make small businesses aware of its existence in the market, be connected to it, and prepare them for the changes that come with digitalization.
In order to provide customers with a seamless end-to-end experience in open mobility, ONDC is also collaborating with Namma Yatri and Google Maps to integrate mobility alternatives like local trains, autorickshaws, taxis, and metro.
Developing an integrated cart is the goal. Any good or service that can be catalogued ought to be available on the network.
In the long run, ONDC's long-term goals of standardising ride-hailing and mobility app protocols and uniting them into a single ecosystem will enable businesses like Namma Yatri to construct public infrastructure at lower rates.
AI
Generative AI could add a total of $1.2-1.5 trillion to India's GDP by FY30
By FY2029–2030, generative artificial intelligence (Gen AI) could boost India's GDP by a total of $1.2–1.5 trillion over the course of the next 7 years.
The study released by EY India, titled 'The AIdea of India: Generative AI's potential to expedite India's digital transformation' offered valuable perspectives on the industry's readiness and obstacles in adopting Gen AI.
According to the analysis, India may possibly gain USD 359-438 billion in FY2029–30 alone by fully utilising Gen AI technology and its applications across sectors, representing a 5.9–7.2% growth over and above baseline GDP.
It is anticipated that industries like business services (including IT, legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services, education, retail, and healthcare will account for over 69% of the total contribution.
The expected outcome is likely to enhance work productivity, heighten operational effectiveness, and customise client interaction.
Organisations however, face two main challenges: skills gap (52%), and the availability of unclear use cases (47%). 36% of organisations also view data privacy as a threat associated with the use of Gen AI.
Use of Indian languages in AI essential, will bring down bias in technology: Meity secretary
According to Shri S Krishnan, the Secretary of the Ministry of Electronics and IT (MeitY), Government of India, Artificial intelligence (AI) programming in Indian languages will reduce biases in the future generation of technology that uses only a few or specialised languages.
He stated at an event that India will have leadership opportunities once basic models for AI around languages are built for widespread adoption in the nation.
The government is now developing artificial intelligence (AI) technologies to allow people all throughout the nation to converse easily with one another through digital translation tools created as part of the Bhashini programme.
According to Shri S Krishan, the significance of developing technologies—whether they take the shape of language or other aspects—is growing.
The inherent biases that arises when using data that is obtained only from specific segments or certain languages do go down as more content that is available in Indian languages and as more Indian languages are included into large language models (LLMs) and other forms.
Shri S Krishan also stated that it is imperative that we use local languages if we want to democratise it, increase engagement, and make people feel as though they are part of the process.
It is impossible to overstate the importance of a multilingual internet in this multicultural nation with 22 official languages and dialects beyond counting.