Indian Start-Up Founders Accuse Industry Body IAMAI of Promoting “Pro-Foreign” Big Tech Views

Several Indian start-up founders have spoken out against the Internet and Mobile Association of India (IAMAI), accusing the industry body of promoting “pro-foreign” Big Tech views on government regulations and other contentious matters. IAMAI, a non-profit organization that aims to represent the digital services industry, has over 500 Indian and multinational corporations, including digital platforms, as its members.

Some Indian entrepreneurs have criticized IAMAI and accused it of promoting the interests of Big Tech companies such as Google and Meta.

IAMAI’s Leadership and Allegations of Bias

Rohan Verma, the Chief Executive Officer and Executive Director of MapmyIndia, recently took to Twitter to express his views on the leadership of the Internet and Mobile Association of India (IAMAI). He pointed out that the top positions within IAMAI are occupied by individuals from Google and Meta. The Chairperson and Vice Chairperson of the industry body are currently Sanjay Gupta, the Country Head and Vice President of Google India, and Shivnath Thukral, the Public Policy Director-India at WhatsApp Inc, respectively. Verma strongly criticized IAMAI for propagating false information and presenting views and submissions to the government and media on digital policies, regulations, and laws that are completely erroneous and contradictory to the needs of Indians, which include consumers, industry, and the government.

Disagreements with IAMAI’s Public Consultations

Several burgeoning firms have expressed their dissension with IAMAI regarding its submission in public consultations on government policies. The industry body had opined that the scope of the rules in the online gaming regulation was inadequately devised and demanded a re-examination of certain aspects. Nevertheless, the leading gaming enterprises had subsequently addressed the government that IAMAI’s statement did not conform to their perspectives and they were not approached before a pronouncement on this “momentous matter” was made. Furthermore, some of the startups have also censured the industry body for its preliminary feedback on the digital competition Bill. Media sources suggest that IAMAI is anticipated to state that the Digital Competition Act could adversely affect the start-ups by curbing innovation, competition, and investments.

Allegations of IAMAI Failing to Represent Start-Ups

The IAMAI has been accused by some startups of failing to adequately represent their interests in disputes with Google regarding in-app billing and the Play Store’s updated policy of charging up to 26% service fees on payments made through user choice billing systems. The Alliance of Digital India Foundation has initiated legal proceedings in the Delhi High Court on behalf of these startups, demanding the implementation of user choice billing. Verma, in particular, has urged the IAMAI to amend its policies immediately, or else lose its credibility.

Start-Ups Demand Strong Anti-Monopoly Digital Act

Anupam Mittal, the initiator and primary executive officer of People Group, took to social media to express his strong support for the adoption of a robust Digital Act that would counteract monopolistic practices by large corporations. He accused the Internet and Mobile Association of India (IAMAI) of being an unsuccessful group that promotes propaganda and incorrect information on behalf of large technology companies. He encouraged both the Competition Commission of India and the Office of the Prime Minister to take notice of this situation.

Trade Bodies Should Promote Domestic Companies

Verma has called for trade bodies in India to promote domestic companies in the domestic market and enable them internationally. He criticized various Indian trade bodies for being lured by and acting on behalf of the interests of foreign companies.

IAMAI’s Response

IAMAI did not respond to Business Standard’s requests for comment on the allegations made by Indian start-up founders. It remains to be seen how the industry body will respond to these criticisms and what actions it may take to address concerns raised by start-ups.