Parliamentary panel on finance discusses information use insurance policies of Big Tech firms

NEW DELHI : The Parliamentary standing committee on finance, led by Bharatiya Janata Party’s Jayant Sinha, on Tuesday met representatives of digital financial system companies and mentioned enterprise fashions as a part of its examine on the aggressive practices within the sector.

The panel had a “constructive and congenial” discussion about digital economy, opportunities created for small businesses, investments by these new age companies and their revenue streams with the representatives of the companies, said a person familiar with the discussions, seeking anonymity. The companies will have to submit written answers to specific queries later, he added.

The interaction with representatives of Big Tech companies will help the panel find out about ‘anti-competitive practices by Big Tech companies,’ according to information on the Lok Sabha website, and is one of the 12 key economic subjects taken up by the committee for a detailed study.

The extensive and detailed recommendations submitted by the Sinha-led panel on bankruptcy reforms last year formed the basis for proposals to amend the Insolvency and Bankruptcy Code, which are being finalized.

An email query sent to the panel seeking comments for the story remained unanswered till press time.

Meta Platforms Inc, Microsoft Corp., Google LLC and Apple Inc. declined to comment for the story.

The committee discussed issues such as the profitability of e-commerce platforms, extent of investments, data collected by social media networks from users, advertisement on social media platforms and types of business opportunities being created for small businesses by e-commerce platforms, the person said.

“The revenue model and ad business of big tech have been at the centre of a number of CCI investigations,” mentioned Prasanto Okay. Roy, a expertise coverage marketing consultant.

Many large tech firms are underneath Competition Commission of India (CCI)‘s lens for alleged anti-competitive practices. Investigations embody alleged advert bias and abuse of dominance by a search engine, promotion of manufacturers owned by an e-commerce platform that’s purported to be impartial, and a telephone maker allegedly abusing its dominant place as an app market supplier and forcing builders to make use of its proprietary fee system.

When large tech firms are taken to regulators, issues haven’t gone properly for them, mentioned Roy. “The parliamentary panel might assist present some stability. This may even assist the Parliament look into competitors regulation by way of adequacy and implementation,” he mentioned.

Policymakers are exploring the necessity for a brand new Digital Markets Act, or to introduce sure tips on information assortment and utilization within the Competition Act to control companies, Mint reported on 18 August.

gireesh.p@livemint.com

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