Taxes and Takedowns: an Assessment of India’s Key Policy Tools for Virtual Digital Asset Markets

Description: This report examines the ecosystem impact of the blocking of the Uniform Resource Locator (URL) of nine foreign virtual digital asset (VDA) exchanges in January 2024. These exchanges saw large increases in trading volumes following the changes in the VDA tax architecture announced in the 2022-23 Union Budget. This report therefore examine whether the blocking managed to stem this offshoring, to assess its effectiveness as a policy lever to ensure compliance with local laws for areas like taxation and anti-money laundering.

Attribution: Dr. Vikash Gautam and Tamanna Sharma. Taxes And Takedowns: An Assessment Of India’s Key Policy Tools For Virtual Digital Asset Markets. Issue No. 042, May 2024, Esya Centre.

Literature Review on Gender Bias in Generative AI: Implications for India and Recommendations for the Way Forward

Description: Generative AI, known for its ability to generate new content and insights, is reshaping the landscape of human-computer interaction and decision making. Alongside its many benefits, however, generative AI presents unique challenges, particularly in terms of its differentiated impact on people of different genders. This paper seeks to understand how gender bias manifests across the value chain of generative AI, through a comprehensive review of academic work and reports by international organizations. It makes recommendations for policymakers, developers, and deployers for mitigating gender bias and reducing the bias-related harms that emanate from generative AI.

Attribution: Meghna Bal, Mohit Chawdhry and Noyanika Batta. A Literature Review on Gender Bias in Generative AI: Implications for India and Recommendations for the Way Forward. April 2024, Esya Centre.

A Survey-Based Assessment of the Impact of the Draft Digital Competition Bill, 2024 on MSMEs in India

Description: This paper seeks to understand the extent to which micro, small and medium-sized enterprises (MSMEs) rely on large digital platforms to advertise to and attract customers, and the impact on MSMEs when regulation or legislation restricts them from doing do so. The triggers for this research paper are developments in some countries to enact ex ante antitrust regulations that seek to limit the ability of digital platforms to provide effective advertising and other services. These rules ignore the well-recognised benefits that MSMEs derive from accessing them.

Attribution: Meghna Bal and Dr Vikash Gautam. A Survey-Based Assessment of the Impact of the Draft Digital Competition Bill, 2024 on MSMEs in India. March 2024, Esya Centre.

Comments on the “Draft Omnibus Framework for Recognizing Self-Regulatory Organisations (SROs) for Regulated Entities (REs) of the Reserve Bank of India”

The Reserve Bank of India (RBI) released the Draft Omnibus Framework for recognizing Self- Regulatory Organisations for Regulated Entities of the Reserve Bank of India (Draft Framework) for public comments on December 21, 2023. The Esya Centre is pleased to be afforded an opportunity to respond to the Draft Regulations. Our response is divided into two parts. Part I provides a preliminary overview of our response and Part II delves deeper into specific aspects of the regulations, such as the need for precise definitions of regulated entity categories, clarity on the number of self-regulatory organisations per category, necessity of defined timelines for RBI decisions, and the inclusion of civil society organisations in the framework's functioning.

Attribution: Comments on the “Draft Omnibus Framework for Recognizing Self-Regulatory Organisations (SROs) for Regulated Entities (REs) of the Reserve Bank of India”. Issue No. 114, January 2024, Esya Centre.

Response to the Public Consultation on “The Competition Commission of India (Determination of Turnover and Income) Regulations, 2023”

The Competition Commission of India (CCI) opened public consultations on the Draft (Determination of Turnover and Income) Regulations, 2023 (“Draft Regulations”) on December 22, 2023. The Esya Centre is pleased to be afforded an opportunity to respond to the Draft Regulations. The Draft Regulations clarify how turnover and income are to be determined for calculating penalties for anti-competitive agreements (s.3) and abuse of dominant position (s.4) under s. 27 of the Competition Act, 2002, or contraventions of the Act under s. 48. The response is divided into two parts, with Part I providing a general overview and Part II delving deeper into each submission.

Attribution: Response to the Public Consultation on “The Competition Commission of India (Determination of Turnover and Income) Regulations, 2023”. Issue No. 113, January 2024, Esya Centre.

Response to the Draft Broadcasting Services (Regulation) Bill 2023

Description: The Ministry of Information and Broadcasting (MIB) initiated public consultations for the Draft Broadcasting Services (Regulation) Bill, 2023 on November 10, 2023. The Esya Centre is pleased to be afforded an opportunity to respond to the Draft Bill. Our analysis, which examines each clause in detail, aims to unravel the complexities in the Bill. In doing so, we provide in-depth insights, particularly focused on the proposed inclusion of OTT services and news and current affairs publishers under the same regulatory framework as traditional broadcasters such as cable TV and radio. 

Attribution: Response to the Draft Broadcasting Services (Regulation) Bill 2023; Issue No. 112, January 2024, Esya Centre.

An Empirical Evaluation of the Implementation Challenges of the Digital Personal Data Protection Act, 2023

Description: This report examines the challenges to implementing India’s Digital Personal Data Protection Act, 2023 (DPDPA). Seeking to understand the operational and technical hurdles faced by organisations to the Act’s enforcement, the report delves into aspects related to the implementation of consent mechanisms, provisions for children and persons with disabilities, and the intricacies of appointing data protection officers. Specifically, it explores the internal processes required for compliance and establishes the timelines necessary for meeting the DPDPA’s obligations.

Attribution: Meghna Bal. An Empirical Evaluation of the Implementation Challenges of the Digital Personal Data Protection Act, 2023: Insights and Recommendations for the Way Forward. January 2024, Esya Centre.

The Pitfalls of Regulating M2M Communication Services under Telecom Law

Description: This primer questions the effect of regulating machine-to-machine (M2M) communication services by using telecom law in India. It responds to the Draft Indian Telecommunication Bill 2022, on which comments have been sought by the Department of Telecommunications (DoT), which defines a ‘telecommunication service’ to include ‘machine-to-machine communication services’ – suggesting that telecom style regulation may be applied to M2M communications as well. It outlines the technology that underpins M2M services, the regulatory issues that may arise as they gain use, asks whether telecom law is suited to redressing these concerns, and concludes with recommendations.

Attribution: Mohit Chawdhry, The Pitfalls of Regulating M2M Communication Services under Telecom Law, October 2023, Esya Centre.

Response to the Public Consultation on the “Competition Commission of India (Commitment) Regulations and the Competition Commission Of India (Settlement) Regulations 2023"

Description: The Competition Commission of India (CCI) opened public consultations on two new draft regulations, namely the Competition Commission of India (Commitment) and the Competition Commission of India (Settlement) Regulations 2023 (hereinafter the Draft S&C Regulations), on August 28, 2023. The Esya Centre1 lauds the CCI for publicly consulting on draft versions of these two important regulations and is pleased to be afforded an opportunity to respond to both. Our response is divided into two parts. Part I provides a preliminary overview of our response, with Part II delving deeper into specific aspects of the regulations, such as timelines and confidentiality.

Attribution: Response to the Public Consultation on the “Competition Commission of India (Commitment) Regulations and the Competition Commission Of India (Settlement) Regulations 2023”. Issue No. 109, September 2023, Esya Centre.

Navigating Approaches to AI Governance: Charting a Pathway for India

Description: The clarion call for the regulation of artificial intelligence (AI) is growing louder across the world. Different jurisdictions have either introduced legislation to regulate the technology or are in the process of doing so. Aside from hard-coded laws, a bevy of voluntary standards have emerged around trust and safety concepts surrounding the deployment and development of AI. This paper presents a roundup of different approaches to AI regulation and governance, as well as the intersection of existing legal doctrines and AI. The purpose of this paper is to put forth considerations for Indian policymakers to take into account when deciding on AI governance down the road.

Attribution: Meghna Bal and Vivan Sharan. Navigating Approaches to AI Governance: Charting a Pathway for India. August 2023, Esya Centre.

New-Age Digital Consumption in India: A Survey of Social Media, OTT Content and Online Gaming

Description: This report examines the consumption and engagement patterns of users in India’s digital market. Three services from the digital consumption basket – social media, over the top (OTT) content services and online gaming – are in focus here. Each of these has witnessed sharp growth in its user base, revenues and innovation in recent years. The three services have also had a significant impact on users’ time-use for skill development, networking, and leisure/entertainment.

Attribution: Professor Rajat Sharma and Dr Vikash Gautam. New Age Digital Consumption in India: A Survey of Social Media, OTT Content and Online Gaming. July 2023, Esya Centre.

Why India Needs an Intermediary Liability Framework for Web3 and What it Should Look Like

Description: The World Economic Forum defines Web3 as a growing segment of decentralised technologies that help “establish provenance, veracity, and value of data.” Web3 technologies, which include cryptography, distributed ledger systems, smart contracts and fungible and non-fungible digital assets, aim to redress the centralisation of data, with large Web2 internet companies, by returning ownership and control to users. This paper argues that the digital product aspect of Web3 should be regulated under a specialised intermediary liability framework targeting centralised Web3 or Web2.5 entities. Such a framework would ensure Web3 digital product risk redressal, while still enabling entrepreneurs to innovate.

Attribution: Meghna Bal and Mohit Chawdhry. Why India Needs an Intermediary Liability Framework for Web3 and What it Should Look Like. August 2023, Esya Centre.

Unbundling the demand for a Network Usage Fee

Description: Major telecom service providers (telecom operators or telcos) in India are arguing for the introduction of a network usage fee for over-the-top (OTT) applications. They contend that there is currently a structural imbalance as OTT platforms allegedly benefit from telecom operator funded networks but do not invest in creating, operating, maintaining or expanding them. Relying on secondary research, this report evaluates the merits of their assertions. Broadly, the literature available indicates that contentions in favour of network usage fees may be incorrect.

Attribution: Noyanika Batta & Meghna Bal. Unbundling the demand for a Network Usage Fee. July 2023, Esya Centre.

Assigning Spectrum for Satellite Services in India

Description: The release of the Telecom Regulatory Authority of India’s consultation paper on “Assignment of Spectrum for Space-based Communication Services” in April 2023, triggered a debate on whether or not spectrum should be assigned across satcom services via auctions. It has also sparked concerns regarding access to sufficient satellite spectrum amongst global satellite operators such as Amazon (Project Kuiper) and OneWeb who want to enter the Indian market. The paper comes at a time when TRAI is consulting with stakeholders on spectrum assignment for space-based communication services. It presents a comprehensive analysis of technical, regulatory, and economic arguments on this issue and echoes the view of majority stakeholders.

Attribution: Tamanna Sharma and Niharika. Assigning Spectrum for Satellite Services in India. June 2023,Esya Centre.