With immense competition from Chinese mobile manufacturers, LG has not been able to reclaim its lost market share in India. Despite its recent stance of looking to tap into the growing anti-Chinese sentiments and manufacture affordable India specific mobile phones under the PLI scheme, LG seems to have not actioned it. Given the low market share that LG had, the impact of LG pulling out of the smartphone business should not be substantial. Moreover, since LG did not have a dedicated factory for manufacturing mobiles in India, disruption in the labour market is also expected to be minimal. We have seen Nokia, Blackberry and other brands come back to India through a licensing route and LG may also go that way in case it indeed pulls out of the smartphone business.
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The FM's speech briefly touched upon aspects of MSME, entrepreneurship and innovation. The allocation of funds for MSMEs has doubled to INR 15,700 and the incorporation of small companies and one-person companies will be aided by the amendments in the requirement of paid-up capital and turnover. This will provide a boost to innovators, entrepreneurs and MSMEs. The budget did not specifically talk about strengthening aspects of technology, communication, financial inclusion, AI/ML etc. - but these will definitely be positively impacted by some of the other announcements made today. Increasing the FDI cap in the insurance sector from 49% to 74% will make it more lucrative for foreign companies to setup shop and also have ownership of the business. This will provide a boost to the insurance tech sector in the country. The allocation of INR 3000 crore for the country's first "digital census" will generate goodwill among those who are betting big on digitalization and tech. The consolidation of provisions of the SEBI Act, Depositories Act, Securities Contracts Regulation Act and other similar acts will also impact the ease of doing business positively - making it more lucrative for businesses to open up and aim towards going public.
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The Hon'ble FM mentioned about the staggering GST collections. This swelling GST collection will certainly help the Government to meet various expenditures as well as reduce the fiscal deficit.
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The law governing data protection in India is prescribed in the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (“Rules”). The Rules broadly regulate (a) the collection, receipt, possession, use, storage, dealing in and handling of sensitive personal data or information (SPDI); (b) the transferor disclosure of SPDI; and (c) the security procedures to be adopted for protecting SPDI. SPDI or personal information is defined as any information that relates to a natural person, which, either directly or indirectly, in combination with other information available or likely to be available with a body corporate, is capable of identifying such person and inter-alia includes (i) password; (ii) financial information such as bank account or credit card or debit card or other payment instrument details; (iii) physical, physiological and mental health condition; (iv) sexual orientation; (v) medical records and history; (vi) biometric information. In terms of the Rules, in India, a body corporate (such as Whatsapp in this case) is required to obtain prior consent in writing from the provider of the sensitive personal data or information (in this case its users) regarding the purpose of usage before collection or transfer of such information which we understand is being obtained by clickwrap agreement by Whatsapp. In the present case, the data privacy rights of the Users is not being compromised (by Whatsapp) so long as the other body corporate / Facebook company (whether located in India or outside) to which the data is proposed to be shared/transferred by Whatsapp maintains the 2 same level of data protection as provided in these Rules, and where such User has consented to data transfer. Having said that, it is incumbent on each User to check what the revised privacy policy of Whatsapp encapsulates and what kind of data (of its Users) is Whatsapp proposing to share / transfer with other Facebook companies. In the event the User is not agreeable to the sharing of its data, he/she is free to delete the account by using the “in-app delete account” feature ensuring that all saved data is also deleted thereby withdrawing consent to use/ process/transfer such Users’ data. So long as Whatsapp is in compliance of the Rules, the rights of the Users are being safeguarded within the ambit of the legislation of data protection in India. Prima facie, in India, there is no embargo on transfer/ disclosure of personal data of an individual so long as consent is obtained for the same and the processes mentioned in the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 are adhered to by Whatsapp. However, we are not in a position to comment on this aspect vis-à-vis global privacy and data policy regulations. While India presently does not have any express legislation governing data protection or privacy, the relevant laws in India dealing with data protection are the Information Technology Act, 2000 and the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules. However, the ever-changing legal and regulatory landscape within India has given rise to the need for having a robust law for the protection of personal data in India. This has paved the way for the birth of the Personal Data Protection Bill, 2019 (“Bill”) which emphasises on the need for increased safeguards vis-à-vis personal data along with stringent penalties. In terms of the Bill, there is increased accountability on the part of the person processing, collecting or using the data, which in turn, increases its risk and exposure to liability unless complied with the provisions of this upcoming law. The Bill is yet to be passed by the Parliament and become a law and it is to be seen in what form and shape it will be enacted.
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“The draft report on pre-packaged insolvency is a step in the right direction but falls short of clear criteria on many vital concepts. For instance, the select committee has suggested that the trigger for the initiation of a pre-pack scheme should occur on subjective criteria such as ‘covid defaults’ or ‘pre-default stress’. While it is clear that a successful pre-pack insolvency scheme will need to attract debtors to resolve impending credit issues even before a default has occurred, terms such as above need definitional precision for any uptake by prospective users.”
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Changes such as storing of undelivered messages and media files on its servers may be a concern for users, although these will be stored in encrypted form. The major takeaway is that WhatsApp is letting users know about how it shares data with businesses that use WhatsApp and its parent company Facebook. So in terms of user rights, we are better informed about WhatsApp’s ongoing practices. While this is a global update, there are some items which differ for the EU because the privacy law there is significantly different. Interestingly, users have no option but to accept the Privacy Policy as it is, or stop using the app altogether. Most global privacy laws require companies to take staggered consent based on the type of data they are collecting. Take the example of cookies, this Privacy Policies does not give you the option of disallowing cookies being placed on your device - something which you must have seen on many websites. This is a clear confirmation that data about you that is collected on Facebook, Instagram and WhatsApp is fast becoming one dataset. This Privacy Policy is a good insight into how WhatsApp will operate as we see it expand further into payments, e-commerce, and even insurance going forward. We find repeated mention of user data being shared for marketing and survey purposes, over and above the many reminders that Facebook companies also have access to your information. As WhatsApp’s operations grow, all of these interlinkages will become more relevant and data from one type of service will feed into another, as we have already been noticing. This policy will also have to be re-looked after the Personal Data Protection Bill is implemented, which is aligned to global regulations in many respects.
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WhatsApp has been the most chosen messaging platform in India, largely for two reasons, first – it’s end-to-end encryption model, and second - it’s a free app with no advertisements. But, the company’s recent decision to share the users information and data with their parent company Facebook and other third-parties can be seen in outright conflict with their earlier policy stand that ‘Respect for your privacy is coded into our DNA’. They fail to understand, that why would any user consent to share his chat and other critical information with any third party, to his detriment. It has become even more alarming, since now the platform has introduced an in-app payment option as well, which means giving our banking and financial information to WhatsApp, with a rider that it can also be shared with third parties. Is this in contravention of any of the global consumer privacy and data policy regulations? Triggering from the 2018 Cambridge Analytica episode to Facebook’s recent Privacy Tracking Lawsuit in the United Sates, it can be deduced that the company has used the user data towards unauthorized and shady activities. In this era of information age, Facebook owns four of the most downloaded apps of the decade, i.e. – Facebook’s own app, Messenger, WhatsApp and Instagram. Any steps towards compromising with the user data (of which, recent WhatsApp privacy policy update is a leading example) will lead to Facebook abusing it’s dominant position. Very recently, an anti-trust case has been opened up against Facebook for abusing its dominance in the digital marketplace and engaging in anti-competitive behavior. Further, an Indian Parliamentary panel has also been set up since there were complaints of political bias, content regulation and data safety over it’s platform, to which Facebook is yet to answer. Hence, it’s not only the recent WhatsApp update that’s worrisome, but Facebook’s history with user’s privacy. . In June of 2020, Apple released their new privacy labels rules, through which, developers were required to disclose what all kinds of data they were collecting through any app. Not so surprising, WhatsApp and Facebook climbed to top of the list collecting most information, while apps like Signal and iMessage collected least. On top of it, WhatsApp recent decision to give the users one-month ultimatum to either accept their new policy terms or quit the platform has set the alarm bell ringing. Hence, it can be presumed if WhatsApp doesn’t amend their policy update soon, people will be forced to move to other more secured platforms.
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“The announcements, when viewed in a holistic manner, are clearly focused on creating short term employment and encouraging long term infrastructure and manufacturing. These will boost both the formal and informal sectors. While the stressed sectors benefit from credit schemes, businesses that rely on close human interactions, such as travel & hospitality, are likely to remain depressed till Covid19 situation improves.”
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The Ministry of Information and Broadcasting (Ministry of I&B) is a ministerial-level agency of the Government of India responsible for the formulation and administration of rules, regulations and laws in the areas of information, broadcasting, the press and the Cinema of India. Generally, Press and Films enjoy the same constitutional freedom related to expression, with Article 19(1) of the Constitution of India guaranteeing freedom of speech and expression. Such a right is not absolute and has certain limitations, including matters that are against foreign relations, public policy, integrity and sovereignty of the State, decency and morality, public order, etc., as mentioned in the Article 19(2). COVID-19 has come at a time where digitisation was rising in India and the common man was getting greater access to affordable internet. In the last 8 months, OTT or digital media and entertainment platforms, have all but replaced television. Yes, digital content is not subject to censor certification applicable to films and television programs. Other than a Universal Self-Regulation Code for OCCPs, OTT platforms enjoy ample creative freedom. The Self-Regulatory Code is yet to become fully functional (August 15, 2021) and its application is based on a best-effort basis. The Ministry of I&B realised the minimal regulation and uncensored content, being freely made available on OTT platforms, to take this step. Jurisprudence on pre-censorship of films in India has historically been tested on the basis of freedom of speech and expression. The rationale being that such freedom was at the heart of any artistic expression. Censorship of films in India is undertaken by the Central Board of Film Certification (CBFC) set up under the Cinematographic Act, 1952 (Act). The Act along with the Cinematographic (Certification) Rules, 1983 and the Central Government's guidelines dated December 6, 1991, issued pursuant to Section 5B of the Act (Censorship Laws), set out the manner in which films are to be certified for exhibition in India. On the other hand, television networks, television broadcasters and related matters are governed by the Cable Television Networks (Regulation) Act, 1995 and Cable Television Networks Rules, 1994, which among other things, restrict transmission through a cable service, of any program that is not in conformity with the program code, and of any advertisement that is not in conformity with the advertising code set out in the Cable Television Networks Rules, 1994. There was debate that OTT platforms were intermediaries under the Information Technology (Intermediary Guidelines) Rules, 2011. Thus, they were required to create a due diligence framework with respect to the information being hosted or published by the intermediary. Now with this move, curated content on OTT platforms will also warrant a level of certification, censorship and care that other avenues for content consumption attract. If self-censorship under the Self-Regulatory Code is unacceptable to the Ministry of I&B, then our hope is that the Ministry of I&B will also consider the recommendations made by the expert committee, chaired by Mr. Shyam Benegal, while trying to formulating guidelines and procedure for certification of content on OTT platforms. One key differentiator of this digital medium is the lack of public exhibition of content; rather, a pull factor wherein the consumer decides what content s/he wants to consume, at what time and after paying a transaction value for the same. Thus, the impact risk may be at variance from that of motion pictures which were available in theatres for public exhibition. In any event, it is imperative that the industry is allowed to flourish and grow in a uniform, non–discriminatory and non–discretionary manner
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“The Government is constantly making efforts towards ease of doing business and the labour codes are another step in this direction and a welcome one. The labour codes provide for fixed-term employment which will generate employment with better provisions such as payment of applicable gratuity and at same time impart flexibility to industry, introduction of concept of “Negotiating Trade Union” or “Negotiating Trade Councils which will assist the employees to voice their concerns and the industry dealing with a single trade union or trade council for negotiation which may lead to speedy resolution, making necessary changes in wage structure so as to bring uniformity as well as capping the exclusions and increasing the social security net for employees. Bearing in mind the requirements, the threshold for layoff and retrenchment provisions has been appropriately increased. The rules as well as the manner in which implementation is done, will be equally important. The codes strive to achieve a balancing act to protect the interests of both employers and employees and to encourage investments in India.”
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