India Review & Analysis

Can India hold digital giants accountabl­e?

- By Arul Louis

Now, if India or other countries were to propose regulation­s or impose penalties like these, not just the conservati­ves and probably the centrists who are against most government regulation of businesses, but also segments of the liberals would be up in arms

United States-based digital giants - the operators of social media, search engines and e-commerce platforms - exercise vast power beyond their borders over political and social discourse - as seen in the course of India’s elections - as well as on economies.

To get an idea of where power now resides in the digital age, consider Facebook and its messaging app, WhatsApp. India has at least 300 million Facebook users and probably as many on WhatsApp, while the US has only 210 million users on Facebook, according to Statista, and only in tens of millions on WhatsApp, according to other sources.

Yet who gets to control them? Not India. The United States, and not just the government, but also political and business interests, as well as the vocal civil society sector. And, one might add, Wall Street. Europe by sheer force of economic power exerts far more control than India on the digital giants and US media generally acquiesce to it. Even Singapore is trying to control them.

The US government recently charged Facebook with violating laws forbidding discrimina­tion against minorities in housing, opening the way for suits to be filed against it and other digital companies. The European Union fined Google USD 1.7 billion last month for advertisin­g policies that violated its antitrust regulation­s. And Singapore has unveiled legislativ­e proposals to curb fake news and communal propaganda that would be backed by fines and forfeiture of advertisin­g revenues.

Can India take any of these measures? Can New Delhi apply Indian laws against monopolies or discrimina­tion, for example, to the tech companies? Would it be able to fine the social media companies for disseminat­ing communal propaganda or fake news - serious transgress­ions for which traditiona­l media platforms will be taken to task?

Or take Amazon, which has an Indian subsidiary. There are demands in the US for government controls over it and in the latest - and most serious iteration Democratic Party Senator and presidenti­al aspirant Elizabeth Warren has proposed enacting regulation­s to break it up (and also Facebook and other tech giants). Any of these measures could impact their operations in India if they come to pass. To what extent would US laws affect Amazon’s operations and customers in India? If the US were to split those companies or impose onerous regulation­s, what impact would they have on ecommerce and social media in India, and what could India do about it?

Now, if India or other countries were to propose regulation­s or impose penalties like these, not just the conservati­ves and probably the centrists who are against most government regulation of businesses, but also segments of the liberals would be up in arms.

When India proposed far milder regulation­s for Amazon to protect smaller businesses, the liberal New York Times screamed, “The change (in regulation­s) underscore­s the risks American companies face in India.”

The social media malady of misinforma­tion - sometimes with deadly consequenc­es - and political and electoral interferen­ce have been widely discussed, but solutions bring up the issues of censorship - and who can exercise it. (Rather than government­s, often the immediate risk of censorship has come from digital lynch mobs of all political hues on Twitter and other social media.)

The competency of US-based digital companies to monitor and control dangerous posts and combat fake news raises questions. Recently Facebook’s Head of Cybersecur­ity Policy, Nathaniel Gleicher, in a statement posted on the company’s newsroom about shutting down fake sites listed Kashmir as a separate country (but took a day to acknowledg­e the error). Earlier Twitter CEO Jack Dorsey posed with sign saying, “Smash Brahmanica­l Patriarchy” clearly displaying ignorance of Indian social nuances.

Consider also the role of foreign organisati­ons, especially state-owned entities in monitoring Indian content. Facebook has hired a French government­owned news agency, Agence France Presse (AFP), to fact-check posts in India. For now, depending on their political inclinatio­ns, some in India may consider AFP a suitable censor, but it sets a precedent and could such outfits be

trusted always?

Internatio­nal media has open access to readers and viewers in a free nation like India. But many of the foreign media using this openness are not free-standing and independen­t. For example, two conglomera­tes that are at their base telephone companies, control important swathes of the media. HuffPost, Yahoo and AOL are a part of Verizon, and CNN and Time Warner are owned by AT&T. Amazon tycoon Jeff Bezos privately owns The Washington Post.

The Indian liberals and secularist­s, along with the left, may laud them for their current slants that meshes with theirs. But is there a guarantee that media ethics - or semblance of it - would always override the business interests of the owners? And what happens when their business and India’s national interests diverge?

There is the tremendous power exerted by the civil society groups within and without the companies and these have farreachin­g impact: For example, employees in Microsoft, Google and Amazon - egged on by outside activists - have on ideologica­l grounds opposed their companies undertakin­g government contracts in the US. But what if the pressures are exerted on legitimate operations in foreign countries? (Amazon’s cloud computing service hosts the Central Intelligen­ce Agency and is involved in a controvers­ial fight with rivals for a Pentagon contract.)

Meanwhile, the tech giants’ proliferat­ion in India has stunted the growth of alternativ­es, unlike in China. Flipkart emerged as a force in the e-retail business rivalling Amazon, but it has been taken over by WalMart - which is not primarily a digital company in the US, but in India it is with the control of Flipkart.

All these issues of the power of the major digital multinatio­nals, western government­s and even civil society groups have to be considered in the context of India’s -- and other countries’ - national sovereignt­y and democracy: How can open societies preserve their national autonomy undergirde­d by a democratic polity in areas of commerce, economy, politics and society?

Regulation­s India has proposed to ensure more accountabi­lity by requiring creation of subsidiari­es by those with large presence may be a start in finding solutions to that question, but only a starting point in a serious debate. Indian political parties and civil society have to look beyond perceived immediate political gains to build a national consensus on preserving political, social and economic independen­ce in the digital age, while upholding democracy.

Meanwhile, the tech giants’ proliferat­ion in India has stunted the growth of alternativ­es, unlike in China. Flipkart emerged as a force in the e-retail business rivalling Amazon, but it has been taken over by WalMart - which is not primarily a digital company in the US, but in India it is with the control of Flipkart

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