Mint Hyderabad

Targeted ads could face new regulation

- Gireesh Chandra Prasad gireesh.p@livemint.com NEW DELHI

The way technology firms tap internet users’ data to flood them with advertisem­ents has become a focal point of the debate on India’s proposed law on regulating big tech firms. The draft Digital Competitio­n Bill prepared by the ministry of corporate affairs is open for public inputs now.

It bars “inter-mixing or cross-using” of data from different services offered by digital economy firms without user consent—a move aimed at ensuring a level playing field in the digital economy.

However, industry executives say this will come in the way of applicatio­n developers monetizing their platforms.

The bill lists “advertisin­g services” as a “core digital service” alongwithe­ightothers—online search engines, online social networking sites, interperso­nal communicat­ion services, operating systems, web browsers, video sharing platform service, cloud services, and online intermedia­tion services.

Using data of consumers from one service—search engines for instance—for using on another, such as advertisin­g, requires user consent.

Consumers denying consent would block applicatio­n developers like online gaming firms or payment applicatio­ns and social media networks from monetizing their business through ads, said an industry executive from a large digital economy firm who spoke on the condition of anonymity.

An email sent to the spokespers­on for the ministry of corporate affairs on Tuesday seeking comments for the story remained unanswered at the time of publishing. However, a person informed about discussion­s in the government said the ministry has extended the public feedback period on the draft bill that started midMarch by another month till 15 May.

“Once stakeholde­rs spell out any concern, the government will look into them,” the person said.

On Monday, 21 think tanks, industry associatio­ns, and several experts wrote to the ministry requesting an extension of the public consultati­on period by five months till 15 October, saying that the bill’s potentiall­y wide impact on the digital economy requires in-depth, evidence-based analysis.

FIRST India (Forum for Internet, Retailers, Sellers & Traders), a division of not-for profit organizati­on India SME Forum (ISF), wrote to the ministry on 11 April saying concerns were raised during its consultati­on with experts that the draft law, inspired by the EU’s Digital Markets Act, may stifle opportunit­ies for Indian MSMEs that are heavily reliant on digital platforms for targeted advertisin­g, identifica­tion, and discovery services.

Restrictin­g such practices could significan­tly impact customer acquisitio­n, cost savings, and accessibil­ity for MSMEs, the forum said.

Mint has seen a copy of the letter.

“Today, advertisem­ents have become more efficient, targeted and low cost as you need not show them in expensive broadcast platforms for niche products. Many small businesses today use online advertisem­ents to reach consumers,” the executive quoted above said.

The Digital Competitio­n bill bars “inter-mixing or cross-using” of data from services without user consent

 ?? PEXELS ?? The draft Digital Competitio­n Bill prepared by the ministry of corporate affairs is open for public inputs now.
PEXELS The draft Digital Competitio­n Bill prepared by the ministry of corporate affairs is open for public inputs now.

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