Policy Wrap: Regulations and stances of Governments around the world regarding Generative AI, India's app economy to contribute 12% to the country’s GDP by 2030, and more

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GENERATIVE AI

Regulations and stances of Governments around the world regarding Generative AI

Rapid progress in the generative AI in recent times have forced Governments around the world to work towards regulations. Here is a summary of some of the latest developments in the world of AI regulations.

Australia

The Australian Communications and Media Authority would be seeking suggestions for rules from stakeholders. The premier science advisory council for Australia is being consulted by the government as it decides what to do next.

EU

EU are among the frontrunners in working towards AI regulations. On June 14, EU legislators approved amendments to a draft of the bloc's AI Act. Before the proposed guidelines become law, the legislators will negotiate specifics with EU nations. While new rules are being established, the U.S. and EU are pressuring the AI industry to adopt a voluntary code of conduct within the next few months.

UN

On June 12, U.N. endorsed a suggestion made by some AI executives for the establishment of a watchdog organisation for AI similar to the International Atomic Energy Agency. A high-level AI advisory council that will routinely examine AI governance arrangements and make recommendations is something the organisation expects to start working on by the end of the year.

US

The head of the U.S. Federal Trade Commission declared in May that the agency was dedicated to using current rules to restrain some of the risks of AI, including the strengthening of the position of powerful companies and the "turbocharging" of fraud. The Federal Trade Commission is focusing heavily on generative AI because it raises concerns about competitiveness.

China

In April, China's cyberspace regulator issued draft regulations to control generative AI services, stating that it wants businesses to submit security reports to the government before making such services available to the general public. Beijing will assist significant businesses in developing AI models that can compete with ChatGPT.

Britain

The Alan Turing Institute and other academic and legal organisations are engaging with the Financial Conduct Authority to better its grasp of the technology. The Financial Conduct Authority is one of several state regulators entrusted with developing new rules governing AI. The competition watchdog in Britain is investigating the effects of AI on consumers, businesses, and the economy to determine whether any new regulations are required.

France

After the ChatGPT chatbox was temporarily banned in Italy due to a potential violation of privacy laws, France's privacy authority CNIL announced in April that it was looking into a number of complaints regarding the chatbox.

Japan

According to a report on June 2 by the nation's privacy watchdog, OpenAI has been cautioned not to gather sensitive data without people's consent and to limit the amount of sensitive data it does collect.

ECONOMY

India's app economy to contribute 12% to the country’s GDP by 2030

According to a survey commissioned by the Broadband India Forum, India's app economy is touted to reach $791.98 billion by 2030 and contribute 12% to the country's estimated $6.59 trillion GDP.

According to the researchers, the term "app economy" refers to a broad range of economic activities related to mobile applications, including the creation and sale of apps as well as in-app purchases, subscriptions, advertisements, publicity gained from free apps, and the development and sale of hardware and software needed to run apps.

The major finding is that by 2030, app-related spending would probably total $800 billion. Given that the Indian economy is projected to be worth $6,590 billion, app spending will probably account for 12% of GDP. In 2023, when the GDP is estimated to be about $3,820 billion at current prices, it is predicted that app economy spending is worth a total of about $145.46 billion.

ONDC

ONDC has completely automated grievance redressal system for handling online disputes and resolutions

According to ONDC CEO T Koshy last Tuesday, the government-sponsored Open Network for Digital Commerce has a fully automated system for handling complaints, and an online dispute resolution tool is also being made available. The ONDC is not an intermediary, platform, application, or piece of software, but a set of specifications created to promote open, unbundled, and interoperable open networks.

Similar to how ONDC makes it possible to look for products and buy them, it also makes it possible to file complaints. From the buying to the selling sides, the complaints flow smoothly. Along with the fully automated grievance redressal, creating an online dispute resolution system is currently in development.

The number of vendors and service providers on the network has risen to over one lakh, and there are now more than 50 network participants, indicating that ONDC has achieved substantial progress in recent months.

ANTITRUST

Australia working towards norms for BigTechs which proposes high penalties for Bigtechs failing to tackle disinformation

Under new Australian regulations, tech firms may be fined billions of dollars for failing to combat disinformation, as the laws would introduce "mandatory" norms to the sparsely regulated industry.

The proprietors of platforms like Facebook, Google, Twitter, TikTok, and podcasting services would be subject to fines of up to 5% of annual global revenue under the proposed legislation, among the highest suggested anywhere in the world.

A government watchdog, the Australian Communications and Media Authority, would be given a number of powers to compel businesses to stop the spread of false information and prevent it from being commercialised.

Additionally, it would give the ACMA a number of additional authorities, including the ability to register and enforce necessary industry norms, demand information from digital platforms, and establish industry standards.

Canada voices concerns that Microsoft-Activision deal likely to affect competition landscape

According to a court document filed last Thursday, the Canadian Department of Justice has determined that Microsoft's acquisition of "Call of Duty" creator Activision Blizzard is likely to result in reduced competition in various gaming-related industries.

The government claimed in a letter dated Wednesday that it had informed Microsoft and Activision's Canadian lawyers that the agreement would probably result in less competition in gaming consoles and multigame subscription services, as well as cloud gaming.

The letter, in which the U.S. Federal Trade Commission is pleading with a judge to temporarily halt the proposed transaction so that an FTC judge can evaluate it, was added to the docket of a U.S. federal court trial last week.

British competition regulators are also opposed to Microsoft's acquisition proposal of the videogame maker. The Competition case Tribunal in Britain will hear Microsoft's case on July 28.

UK regulator criticize Adobe's $20 billion Figma deal citing fears of limiting innovation

The acquisition of Figma by Adobe Inc. for $20 billion on Friday was criticised by Britain's competition watchdog as having the potential to "limit innovation" and may warrant further inquiry.

The deal would be subject to a phase 2 inquiry, according to the Competition and Markets Authority (CMA), "unless the parties offer acceptable undertakings to address these competition concerns."

Companies that rely on Figma and Adobe's digital tools may see greater prices as a result of this agreement, which could hinder innovation. Figma, however, is adamant that the proposed merger with Adobe won't lessen competition in their respective industries because they are constantly in contact with the CMA.