The implementation of the Digital India Act is unlikely to happen before the upcoming general election. While Minister of State for Electronics and IT, Rajeev Chandrasekhar, attributed the delay to time constraints, stakeholders link it to emerging threats like generative AI and deep fakes. The postponement prompts worries about multiple issues such as cybersecurity, stalling the growth of digital businesses or dominance of big tech.
“The delay in the Digital India Act could be attributed to the rapid changes and advancements in the technology sector, particularly in generative AI,” said Adhvith Dhuddu, angel investor and CEO of creative tech agency, AliveNow.
According to Dhuddu, the government may be taking the time to ensure robust regulations, drawing parallels with Europe’s GDPR framework and emphasising the need for a solid redressal mechanism.
“The focus on regulations around AI-generated content, including voices and videos, reflects the government’s concern about potential misuse, especially in the context of deep fakes. While there might be disappointment in the industry’s desire for quick implementation, as an industry we acknowledge the gravity of the consequences and the necessity for a comprehensive and well-thought-out approach,” he added.
The proposed Digital India Act aims to establish a dynamic and updatable legal framework, focusing on key principles of Digital India. These include ensuring an open internet, fostering online safety and trust, ensuring accountability and service quality, and introducing adjudicatory mechanisms to address cyber offences promptly. The law emphasises the need for a dedicated and accessible adjudicatory mechanism, providing timely remedies, resolving disputes, and contributing to unified cyber jurisprudence for effective online rule of law.
While awaiting a holistic regulatory framework, stakeholders have their share of apprehensions.
Nikhil Varma, Managing Partner, MVAC Advocates and Consultants said that a delay in enacting a Digital India Act could impact the establishment of robust cybersecurity measures.
“This delay might leave digital infrastructure and systems exposed to cyber threats, putting both public and private entities at risk of cyberattacks and data breaches. It could further lead to uncertainties, vulnerabilities, and missed opportunities for both individuals and businesses in the digital landscape. Clear and timely regulations are essential to ensure the responsible and secure integration of digital technologies into various aspects of daily life,’ he said.
Digital news publishers are also disappointed about the delay. Businesses in the space were looking forward to the Digital India Bill 2023 to establish a system that ensures a fair revenue-sharing mechanism with big tech companies, a law that aligns with international best practices, such as Australia’s News Media Bargaining Code.
Prolonging the supremacy of big tech is an area of concern not just for digital news businesses but other stakeholders as well.
“The Act is designed to limit the supremacy of major tech corporations such as Google and Facebook by providing the government with regulatory control. Its postponement allows these corporations to maintain their unchecked influence, potentially continuing anti-competitive practices and obstructing the growth of a dynamic digital ecosystem,” said Kunal Sharma, policy expert and Partner at Singhania & Co.
This delay, while appearing to be procedural, has far-reaching legal and practical implications across various sectors, said some experts.
Some said that the postponement of the act obstructs the progress of India’s digital economy, which is dependent on a consistent and predictable regulatory framework. According to them, the delay would deter investments in this sector, potentially inhibiting its expansion and affecting its global competitiveness.
“The act enhances online safety measures with stipulations like age restrictions for addictive technology and regulation of emerging technologies. The postponement compromises the safeguarding of children and vulnerable groups from online threats, leaving them susceptible to potential exploitation and manipulation,” said Sharma.
The delay also risks breaching international commitments according to some.
According to Sharma, India’s adherence to international agreements like the World Trade Organization’s Agreement on E-Commerce necessitates a transparent and predictable regulatory environment and the postponement of the Act raises questions about potential breaches of these agreements, possibly affecting India’s global reputation and inviting legal disputes.
Despite the challenges faced by related industries, legal experts find merit in the delay. They argue that the process is meticulous and time-consuming. It necessitates extensive discussions and multiple rounds of debate to incorporate information necessary for addressing various scenarios that may arise and need to be addressed by the bill.
”Moreover, the firm stance of the Prime Minister, insisting on comprehensive consultations for every digital legislation, adds to the complexity, making it challenging to release the Bill before the next general elections,” said Aviral Kapoor, Partner, Alagh & Kapoor Law Offices.