Welcome to The Esya Dispatch, a weekly snapshot of the policy debates shaping India’s digital economy. Each edition brings together key developments in technology policy, from platform governance and AI regulation to data protection and competition — along with the Esya Centre’s perspective on what they mean for innovation, businesses, and users.
Here’s a quick recap of two key tech policy developments from the past week:
EU Digital Networks Act’s voluntary conciliation mechanism resurrects concerns regarding network usage fees
The European Commission has adopted the proposal for the Digital Networks Act (“DNA”), which aims to simplify, modify and harmonize EU rules on connectivity networks. Broadly, it enables network and service providers to offer EU-wide services while registering only in one country, mandates national transition plans from copper to high-fibre networks, introduces an EU Preparedness Plan for disaster-resilient digital infrastructure, and reduces businesses’ administrative and reporting burdens.
One contentious proposals under the DNA is a “voluntary conciliation” mechanism for disputes related to network costs. Under the DNA, national regulatory authorities may facilitate a meeting between network operators and content providers regarding “technical and commercial arrangements” related to the provision of their services. After consulting the Body of European Regulators for Electronic Communications (“BEREC”) for its opinion, the national regulatory authority concerned may provide a written account of the possible next steps, any elements of agreement between the two entities and suggested options for effective cooperation. Further, the European Commission will review the functioning of this conciliation mechanism three years from the date of the DNA’s enforcement.
ESYA’S TAKE: The DNA’s voluntary conciliation mechanism may indirectly subject content and application providers to a network usage fee (“NUF”). Although the conciliation mechanism is not binding, telecom operators may leverage it to file repeated conciliation requests and portray any content or application provider’s (CAP’s) refusal to pay an NUF as evidence of their non-cooperation. This raises two concerns. Firstly, there is no principled justification for imposing an NUF on CAPs. CAPs and telecom operators share a symbiotic relationship: CAPs drive data demand and telecom revenues, while bundled CAP subscriptions enhance telcos’ customer retention and revenues. CAPs have also made significant investments in network infrastructure, improving service quality and reducing costs for both telecom operators and consumers.
Secondly, imposing an NUF will harm both consumer welfare and competition. According to our 2026 study, 68 percent of experts surveyed believed that an NUF would decrease consumer welfare. Meanwhile, 74 percent of experts stated that an NUF would lead to consumers paying a similar price for internet services as before, while 21 percent noted that prices may increase. This suggests that users would bear the increased costs of an NUF, while telecom operators are unlikely to pass on any surpluses through lower prices. Further, 74 percent of experts were apprehensive that an NUF could favour established CAPs over start-ups and 79 percent predicted a moderate to extreme decline in efficiency in the CAP industry. Thus, an NUF is unlikely to generate meaningful competitive or efficiency benefits, while posing significant risks to consumer welfare.
DigiYatra pivots towards expansion to international travel
DigiYatra, India’s facial recognition-based airport entry system, is pivoting toward international expansion. Currently operational at 24 domestic airports, the system allows passengers to enroll via Aadhaar-linked biometrics, effectively turning their face into a boarding pass. The DigiYatra Foundation (DYF) is now transitioning to support electronic passports, a move designed to accommodate both Indian citizens and foreign nationals. Trials have already been conducted on the Bengaluru-Doha route. The DYF has also signed a pilot agreement with the International Civil Aviation Organisation (ICAO), which sets global passport standards.
ESYA’S TAKE: The DigiYatra app is reportedly audited for compliance with data protection norms. However, its expansion to international travel may still conflict with global privacy laws. For instance, the EU’s GDPR does not permit processing of biometric data, outside of a few exceptions. Further, the GDPR generally permits transfers of personal data to third countries only where they ensure an “adequate level of protection”, and India currently does not have adequacy status with the EU. In fact, in 2024, the European Data Protection Supervisor reportedly refused a data transfer request to India, indicating that the Digital Personal Data Protection Act, 2023 does not meet the EU’s adequacy threshold. In this context, it remains unclear how DigiYatra’s international expansion can be operationalised.
Additionally, while DigiYatra claims alignment with international digital identity standards such as Europe’s Digital Identity Wallet framework, even that framework has been criticized by the European Data Protection Supervisor for potentially compromising the integrity of personal data, risking its over-disclosure to relying parties and enabling user profiling, in violation of the GDPR’s principles of data minimization and purpose limitation.
It is also unclear whether DigiYatra is truly effective in making domestic or international air travel more efficient and easier for passengers. Earlier this year, passengers at the Delhi, Mumbai and Bengaluru airports faced issues due to technical glitches with the DigiYatra app, which reportedly caused confusion and delays. Reports also indicate that a majority of consumers in India use DigiYatra not due to convenience, but under compulsion by ground staff. Further, since DigiYatra’s pilot expansion excluded immigration processes, which require separate regulatory approvals and bilateral and agreements between countries, its ultimate utility in saving time for international travel is questionable.