Your platform, our terms, Pg11.

Key Highlights:

• In June 2020, India banned TikTok and other Chinese apps due to border tensions with China, impacting over 200 million Indian users.
• Unlike its approach with American platforms like Facebook and Twitter, India did not attempt to negotiate localization or conditional approvals with TikTok.
• The US has adopted a "third track" approach with TikTok, allowing it to operate under strict conditions, including data storage on Oracle's servers and oversight by a domestic board of trustees.
• India's digital economy is primarily built as a global servicing infrastructure, lacking the necessary localization infrastructure for domestic oversight of global platforms.

Detailed Insights:

• India's approach to global tech platforms has varied; while it sought compliance from US-based platforms, it opted for a ban with TikTok, highlighting a gap in negotiating with non-US platforms.
• The US's deal with TikTok involves data residency, algorithm inspection, and operational trusteeship, showcasing a capacity for demanding adaptation that India currently lacks.
• Homegrown Indian platforms like ShareChat, Moj, and Koo have struggled with retention, monetization, and scaling, underscoring the imbalance in India's digital priorities.
• While WhatsApp Pay's phased launch after complying with data localization norms demonstrates India's ability to enforce certain regulations, this was possible due to the financial sector's strong regulatory framework.
• India's Information Technology Act and IT Rules are designed more for post-incident enforcement rather than proactive, negotiated localization with global platforms.
• To change its trajectory, India needs to build sovereign cloud and data systems, equip regulators with technological expertise, and create laws that allow conditional permissions and negotiated adaptation.

Key Concepts Involved:

• Data Residency: The requirement that data be stored within a country's borders.
• Algorithm Audits: Independent examinations of algorithms to ensure fairness and compliance.
• Sovereign Cloud: A cloud computing environment that provides data residency and complies with local regulations.