Tech giants namely Google, Amazon, and Apple have asked India to reconsider its proposed EU-style law through a letter.

The group has denoted that prohibiting data use and giving partners exclusive service have the chances of increasing costs for users.

Certain large tech companies in India could be subject to duties under a new antitrust law, which could supplement current restrictions, as per a government panel’s suggestion in February, as the enforcement of which the panel claimed is "time-consuming," due to the growing market dominance of these companies.

Since the EU’s Digital Markets Act 2022 is claimed to be an adaptation of India's "Digital Competition Bill”, some of the big companies in the world will fall under its purview. Large companies, with a global turnover of over $30 billion and whose digital services have at least 10 million local customers, are said to fall under this.

Likewise, tech giants have suggested doing away with the limitations particularly on downloading third-party apps and forbidding businesses from using their users' private information to promote their own services over competitors.

Dated May 15, the letter states that the US-India Business Council (USIBC), a division of the US Chamber of Commerce suggested companies use these methods to introduce new product features and improve user security, and that restricting them would negatively impact their plans. The Ministry of Corporate Affairs in India is responsible for the legislation.

India, home to 1.4 billion people, presents a sizable opportunity for big tech companies due to its expanding middle class. In spite of a four percent fall in overall global revenue for the March quarter, Apple CEO Tim Cook announced this month that the business had set a "revenue record" in India.

A few big digital companies "wield immense control over the market," according to the Indian panel, which is why a new regulation is required. Similar to the EU, it suggests that infractions carry a fine of up to 10 percent of a company's yearly worldwide turnover.

The Competition Commission of India (CCI) has been looking into big tech companies for a number of years.

In 2022, the CCI penalized Google $161 million and mandated that it cease preventing users from uninstalling its pre-installed programs and permit downloads outside of its app store. Google disputes any wrongdoing and claims that these limitations improve user security.

Also, Amazon is being investigated for antitrust violations after it was allegedly found to have favored certain vendors on its Indian platform. Although Apple is under investigation for allegedly abusing its dominating position in the apps market, the company also disputes the accusations.

However, a group of forty Indian entrepreneurs has come out in favor of the new law, claiming that it can help level the playing field for smaller businesses and address the monopolistic tactics of large digital platforms.

The Indian government will next consider input on the idea before requesting parliament approval, either with or without modifications. There is no set timeframe for this process.