21 March 2025: PIB Summary For UPSC

1. The challenge of policing digital giants

(Source – The Hindu, International Edition – Page No. – 8)

CCI’s Order Against Meta

• The CCI ruled that WhatsApp’s 2021 privacy policy update forced users to share their data, which was an abuse of dominant position in two markets:
  • OTT messaging services for smartphones
  • Online display advertising
• Meta appealed the decision to the National Company Law Appellate Tribunal (NCLAT), which on January 23, 2025, stayed the five-year ban and the penalty but required Meta to deposit 50% of the fine.

The Role of Data in Digital Markets

• Data is the new oil, but unlike oil, it is limitless and reusable.
• Digital platforms use vast data pools to refine algorithms, personalize services, and target advertisements, creating a competitive advantage.
• Data-driven network effects increase market dominance, as more users generate more valuable data, making it harder for competitors to challenge established platforms.

Global Regulatory Actions

• Regulatory bodies worldwide have taken steps to address digital market dominance:
  • United States:
    • Antitrust litigation against major tech firms for restricting competition through acquisitions.
    • In 2024, a U.S. court found a major company guilty of violating antitrust laws due to exclusive agreements in search and advertising.
  • Europe:
    • The Facebook-Germany case ruled that Meta’s data-sharing without explicit consent was a violation of EU competition law and the GDPR.
    • The European Union is investigating Meta’s ad-supported subscription model.
  • Australia:
    • Implemented laws to regulate dominant digital platforms and ensure fair market competition.
• These cases highlight the growing concerns of data exploitation and monopolistic practices worldwide.

Lessons from Past Antitrust Cases

• The U.S. has a history of dismantling monopolies:
  • AT&T was forced to divest 22 companies due to its market dominance.
  • Microsoft was placed under regulatory oversight to ensure fair competition.
• The CCI’s actions against digital platforms reflect the broader global challenge of regulating tech monopolies in areas like advertising, e-commerce, and smartphone services.

India’s Competition Law and Future Amendments

• India’s Competition Act, 2002 does not explicitly address data-centric monopolies, focusing mainly on price-based dominance.
• Proposed changes to strengthen the Act include:
  • Introducing “data monopolization” as a factor in defining market dominance.
  • Mandating interoperability and data-sharing agreements to prevent anti-competitive practices.
  • Implementing separation of integrated services to ensure fair competition.

Complementary Role of Data Protection Laws

• The Digital Personal Data Protection Act, 2023 regulates data collection, consent, and usage.
• However, there is no clear coordination between the CCI and the Data Protection Board of India, limiting enforcement effectiveness.
• India could adopt best practices from the European Union, which integrates competition law with data protection regulations like the Digital Markets Act (DMA) and GDPR.

Regulating the Digital Economy for Future Growth

• The Economic Survey 2024-25 highlights India’s digital transformation and the growing role of artificial intelligence (AI) in the economy.
• As digital markets evolve, India’s regulatory frameworks must adapt to address the challenges of:
  • Data-driven monopolies
  • Anti-competitive practices
  • The influence of global tech giants
• The CCI’s order on Meta marks a key moment in India’s digital market regulation, but long-term solutions require stronger competition laws, better enforcement, and future-ready policies. 

2. The assault on multilateralism and international law

(Source – The Hindu, International Edition – Page No. – 8)

U.S. Shift Away from Multilateralism

• The U.S. administration has adopted an isolationist approach, moving away from international agreements and institutions.
• Steps taken include withdrawal from the World Health Organization (WHO), the United Nations Human Rights Council (UNHRC), and the Paris Climate Agreement.
• Sanctions have been imposed on international institutions, including the International Criminal Court (ICC).
• A proposed law, the DEFUND Act, seeks to completely withdraw the U.S. from the United Nations (UN).

Threat to the United Nations

• The DEFUND Act, if passed, would repeal key legislation that governs U.S. participation in the UN.
• It would halt U.S. financial contributions and end its participation in UN peacekeeping missions.
• UN officials in the U.S. would lose their legal immunity, making their work more difficult.
• These actions could weaken the UN, which has been a major platform for global cooperation since the Second World War.

Actions Against the International Criminal Court (ICC)

• The U.S. has imposed sanctions on the ICC, accusing it of taking unjust actions against the country and its allies.
• The ICC was established to hold individuals accountable for crimes such as genocide and war crimes.
• Historically, the U.S. supported war crime trials after the Second World War, but it has not ratified the treaty that established the ICC.
• These measures undermine efforts to ensure justice for serious human rights violations.

Trade Protectionism and Its Consequences

• The U.S. has implemented high tariffs, citing national security concerns.
• A similar approach in the 1930s, through the Smoot-Hawley Tariff Act, worsened the global economic crisis and contributed to tensions leading to the Second World War.
• The World Trade Organization (WTO), which promotes fair trade, is facing a crisis due to U.S. opposition to its dispute settlement system.
• There is also a possibility of the U.S. withdrawing from the WTO, which would disrupt the global trade system.

Impact on Global Cooperation

• The U.S.’s actions could weaken institutions that maintain international law and order.
• Global challenges like climate change, public health, and economic stability require collective efforts, but U.S. withdrawal could hinder progress.
• The shift towards unilateral decisions may also lead to retaliatory actions from other countries.
• Economic nationalism and isolation may not lead to long-term prosperity without international cooperation.

Opportunities for Other Nations

• The U.S.’s declining role in global institutions presents an opportunity for other nations to take leadership roles.
• Some countries, including India, have emphasized the importance of multilateralism and peaceful international cooperation.
• India has called for reforms in global institutions such as the UN Security Council (UNSC) to better reflect the changing world order.
• Recent international meetings have highlighted the need for collective solutions to global problems.