Paytm Joins Indian Startups In Opposing IAMAI’s Submission To Digital Competition Law Panel

SUMMARY

In a formal note sent to the Committee on Digital Competition Law, the IAMAI said that Paytm has “divergent views” from those expressed in the industry body’s submission

Earlier, the IAMAI submitted its final arguments to the CDCL opposing the need for ex-ante regulations

The latest development comes at a time when Indian startups have accused the IAMAI of batting for big tech players and working against the interests of homegrown players

At a time when Indian startups are up in arms against the Internet and Mobile Association of India (IAMAI), fintech giant Paytm has reportedly slammed the industry body’s stance opposing ex-ante regulations for digital markets.

In a formal note sent to the Committee on Digital Competition Law (CDCL), the IAMAI said that Paytm has “divergent views” from those expressed in the industry body’s submission, ET reported.

Recently, the IAMAI submitted its final arguments to the CDCL opposing the need for ex-ante regulations. It argued that such measures could limit growth in relevant markets, impacting the digital economy as a whole.

The industry body also said that its members were of the view that the existing rules were sufficiently adept at addressing competition concerns in the sector.

Ex-ante norms look to identify issues and suggest measures before any competition-related issues arise in a market.

The CDCL was established in February by the Ministry of Corporate Affairs (MCA) to evaluate if India requires a separate Digital Competition Act and to draft one.

The ET report quoted the founder of an Indian internet startup as saying that the IAMAI should reveal which companies other than tech giants like Google and Meta are supporting its views.

The latest development comes at a time when Indian startups have accused the IAMAI of batting for big tech players and working against the interests of homegrown players.

A startup cofounder told Inc42 earlier that the current leadership of the IAMAI was represented by foreign players and the submissions to the CDCL were nothing but masked opinions of the big tech players.

“Less than 10% of IAMAI members are non-Indian MNCs, yet, they occupy 100% of the key positions within the IAMAI. As a result, a lot of startup founders have come together to imbibe one philosophy — Indian interests should be first and foremost,” the cofounder said.

Earlier on May 15, the IAMAI announced that 83 members were in the fray for the polls to elect its 24-member council. Among these, the top three nominees would then form the executive council, comprising chairperson, vice-chairperson and treasurer of the association.

Of the total nominees, 65 are Indian startups while the rest comprises big tech players and other MNCs.