India requires a whole of government approach to rule-making to address institutional challenges raised by technology. Explain (200 Words)
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IAS Parliament 4 years
KEY POINTS
· Digital businesses in India are staring at the prospect of control by no less than six regulators, as the state attempts to govern new technology.
· Central Consumer Protection Authority (CCPA) whose remit would grant it oversight of digital businesses, and the current government’s proposals to create a regulator for personal data as well as e-commerce. India also has a sector- agnostic anti-trust regulator, the Competition Commission of India (CCI), and a telecom regulator that seems to see itself as a future licensor of digital applications.
· The principle of a level-playing field between large and small businesses is a common feature of calls for regulation. Kris Gopalakrishnan, chairman of the committee on non-personal data, has stated that “the most important thing is making this data available for many people to innovate and create new businesses".
· Jurisdictional overlaps are seen elsewhere in regulation too. The CCPA will oversee misleading advertisements online, as well as the disclosure of personal information to third parties.
· Our executive rules that demarcate supervisory boundaries of government departments also remain ambiguous. For instance, the department for promotion of industry and internal trade is entrusted with all matters related to e-commerce, as per an amendment to the allocation of business rules in 2018.
· If jurisdictional confusion persists, disputes are likely to follow. Illustratively, the Supreme Court had to settle a high-profile conflict between the Telecom Regulatory Authority of India and CCI in 2018. Such disputes are problematic because they erode economic value and trust in the supervisory capacity of the state.
· According to the Economic Survey of 2018-19, an increase in policy uncertainty could reduce investment growth in India for about five quarters.
· Multi-stakeholder consultations and the promotion of self-regulation by the industry are equally necessary for light-touch governance that incentivizes innovation. Other good practices include regulatory impact assessments and international cooperation to address the cross-border dimensions of technology.
