Leading with purpose creates wins for consumers, community and country: Hina Nagarajan of Diageo India

'Largest employer in the world is inefficiency': CRED's Kunal Shah at Storyboard18 Global Pioneers Summit

Unheard tales of Maggi’s redemption: How poetry and nostalgia revived an iconic brand

Content creator Raj Shamani’s journey: Prioritizing substance over virality

MIB’s Ashwini Vaishnaw at Storyboard18 DNPA Conclave: Govt working for fair compensation for media houses

Nobody’s Perfect Retro Porsche Ad

In Conversation With Raja Rajamannar, Mastercard

Shahid Kapoor And Varun Ganjoo Speaks On PokerBaazi's Campaign

In conversation with IHCL’s Puneet Chhatwal & GroupM’s Kate Scott-Dawkins

Why are brands including e-sports in their sports marketing itinerary?

Storyboard18 x The English Nut: How to pronounce these 10 brand names

Experts' Take On Reinvention Of Ad Campaigns Through Technology

Experts Speak On Key Emerging Trends In Cannes Lions Entries

Leaders of the future have to be outstanding human beings: Nestle MD

In conversation with VMLY&R’s Hari Ramanathan

The Ministry of Electronics and Information Technology (MeitY) recently released draft regulations to implement the digital privacy law, bringing about a change in how companies and government agencies handle personal data. Children's data privacy is a rather important aspect of this, and has been emphasised several times in the Didigtal Personal Protection Data (DPDP) Act .

A report by Moneycontrol quoted a government official saying that among steps to escalate security for the youngsters, emerging digital identity frameworks such as the Apaar ID — a unified national digital ID for students — and state-level family IDs can be used to verify parents or guardians for processing children's data under the draft Digital Personal Data Protection Rules.

The Automated Permanent Academic Account Registry (APAAR) ID is a student identification system that is part of the "One Nation, One Student ID" programme.

While a centralised family ID system does not yet exist at the national level, several states, including Haryana, Andhra Pradesh, Tamil Nadu and Rajasthan have already implemented state level local identification systems for families. These frameworks can be integrated into the verification process for parental consent under the DPDP Rules.

Adopting verifiable parental consent mechanisms to safeguard children's personal data is an important aspect of the draft of the DPDP Act. Data fiduciaries store, collect and process personal data, and are now responsible for ensuring its protection under the DPDP Act. The draft says that the data fiduciaries must implement technical and organisational measures to verify the identity of parents or guardians. This also includes checks using government-issued IDs or digital tokens linked to trusted services such as digital locker providers. 

There are still questions about how state-level systems will share data and protect privacy. The DPDP Rules aim to tackle these issues by requiring strong security measures and appointing consent managers to oversee data handling and ensure compliance with audit standards.

Union Minister Ashwini Vaishnaw assured on January 7, that privacy will remain central to the rules of the Act. He said that virtual tokens used for verifying children's data will be temporary and deleted after a single use. The DPDP rules draft was released for consultation on January 3, and is open for people to send their feedback and suggestions till February 18.

Guardian Verification for Children’s Data Under DPDP May Involve Apaar IDs

By Vivan Sharan

Last week, the Ministry of Information and Broadcasting (MIB) initiated discussions on the potential regulation of user-generated content (UGC) under the Broadcasting Services (Regulation) Bill. This move follows recent meetings between social media and content companies and the MIB, sparking widespread concern about the impact on creative and free expression online. While it's crucial to address these concerns, the developments thus far reveal two surprising facets.

Firstly, it’s surprising that the conversation around the impact on UGC has gained momentum six months after the broadcasting bill was introduced for consultation. The public draft already contained broad provisions that threatened to subject UGC to TV-style content regulations. 

<a href="https://www.storyboard18.com/digital/govt-mulls-new-proposal-to-regulate-ugc-on-social-media-in-broadcast-services-bill-34426.htm">Read more: Storyboard18 Exclusive: Govt mulls new proposal to regulate UGC on social media under broadcast services bill</a>

Content creators who “systematically” produce “news and current affairs” for social media and other UGC services could find themselves bound by the same stringent adverting and programme “codes” as traditional TV broadcasters. These codes are content standards that go well beyond the restrictions on speech in the Indian Constitution. For instance, they prescribe that TV content should not “offend good taste or decency”. The vague definition of news and current affairs could also encompass a wide range of online commentary, stifling diverse voices and innovation.

More surprising still, is lack of discussion on the significant commercial implications of such content regulation for India’s app landscape. The true benefits of digitisation lie in the democratisation of content creation and distribution. Today, anyone can become a creator and reach a national audience at minimal cost, with most content consumed for free. Indians downloaded a whopping 26 billion apps on their smartphones last year, but revenues of the main app stores still added up only to around 25th in the world -- illustrating consumption preferences. 

The low cost of creation and consumption, coupled with the proliferation of apps, has sparked a Cambrian explosion in India’s digital market. Imposing TV-style content regulations will stifle this creative surge, leading to formulaic content akin to TV’s current landscape, dominated by shrill news anchors and formulaic soap operas.

Secondly, India risks undermining digital product development, which thrives on low-cost, high-volume dynamics. Few premium consumer-driven apps have achieved significant scale. Consider the largest Initial Public Offerings of tech stocks like Paytm that commoditised payments, or even upcoming listings of companies like Meesho which operates a zero-commission, ad-driven marketplace. Similarly, in the content sector, scaling hinges on UGC.

In fact, the compression of digital economy margins in the years following the COVID-19 digital consumption boom has led global companies to adopt a broader approach to capture users and transactions, transforming specialised apps into "everything" apps. Twitter's (now X) rebranding under Elon Musk, with its new focus on audio, video, messaging, payments, and banking services, exemplifies this trend. In India, this aspiration is evident as giants like Tata and Jio vigorously pursue the superapp model. App diversification is here to stay, and nothing facilitates this better than UGC, which enables hosting diverse content at minimal cost.

Historically, online media has undergone cycles of bundling and unbundling, driven by individual creators and aggregators. Blogs and podcasts, once highly individualised, have found new life through platforms like Substack and Spotify. Similarly, YouTube’s UGC bundles benefit creators by leveraging established distribution channels. With close to three billion monthly active users globally and nearly 500 million in India alone, YouTube’s success highlights the potential of UGC. Imposing new liabilities on UGC services could disrupt this seamless cyclicality, stifling app innovation and growth.

The potential regulations also pose a threat to the evolution of next-generation digital products and devices that leverage UGC. Modern gaming and emerging technologies like metaverses already depend heavily on UGC for scaling. Meta’s expanding Quest universe leads this trend. 

<a href="https://www.storyboard18.com/special-coverage/the-importance-of-ashwini-vaishnaw-heading-so-many-ministries-34777.htm">Read more: The Importance of Ashwini Vaishnaw heading three ministries</a>

Constraining Indian content production online would also be inherently discriminatory, as it would be impossible to enforce these regulations on global creators, putting Indian creators and app markets at a disadvantage.

India has around three million content creators, with 1,50,000 able to monetise their content. Earnings vary, with micro-influencers earning around Rs. 20,000 per post and celebrity influencers earning up to 15 lakhs. UGC creators also have a discernible social impact. For instance, “Khan Sir” helps his 23 million followers prepare for exams through YouTube, while Instagram Reels enabled Bhagpat’s Nancy Tyagi to support her family and attend the 2024 Cannes Film Festival.

Global apps with vast content libraries will have an advantage over Indian players, who may be pushed out of the market, if they are liable for offending the “good taste” of the establishment of the day. Services with diverse slates and global content offerings will withstand greater scrutiny, but smaller, niche, India-focused services will suffer. 

India’s content and app economy is at a critical juncture. Policymakers have the opportunity to cultivate a digital market that leverages creativity, supports product development, and is globally competitive. They must recognise the unacceptable risks that overregulating UGC poses to each of these goals. Simultaneously, organised industry groups should engage more actively with government to ensure better sense prevails. They owe individual creators.

Vivan Sharan is Partner at Koan Advisory Group. Views expressed are personal.

<a href="https://www.storyboard18.com/special-coverage/indias-2024-general-election-a-tech-policy-outlook-33707.htm">Read more: India’s 2024 General Election: A tech policy outlook</a>

The unintended consequences of regulating User-Generated Content

The 2024 General Election results have revealed a divided mandate suggesting a period of adjustment for the tech industry. With the dynamics of coalition politics, BJP allies and state governments will now have a greater say in policymaking. And this new paradigm is grounds for policymakers and stakeholders to engage in more dialogue. 

Here's a quick outlook on the implications for the tech sector:

Industrial schemes

Schemes such as the next phase of Performance Linked Incentives (PLI) for smartphones and the demand-side subsidies for electric vehicles may face some uncertainties. The continuation of such incentive schemes requires industry advocates to push intently, because they require a whole of government consensus. 

Ministry consolidation in limbo

Any future attempts to consolidate line ministries in the spirit of ‘minimum government’ (sic) might falter as alliance partners are accommodated across all tiers of government. The BJP had done away with seven appellate tribunals citing similar grounds via the Finance Act of 2017, and merged them with others. 

A more decentralised scenario provides tech companies more flexibility, allowing them to navigate between the sometimes-competing agendas of different line ministries and regulators. This is arguably also in the public interest since domain specialisation takes time to cultivate within government bodies. 

More voices to join discussion on gaming regulation 

The new government will need to pack in many different voices before wide consensus on legal online betting and gaming may be reached. Regional parties will play a key role in the new government, and there will be healthy competition among them to weigh in on tech laws. This includes laws that impact the gaming ecosystem indirectly, such as the regulation of betting and gambling, a state subject. 

The Prime Minister’s Office previously held the reins on gaming regulation, but now the field may open up to broader stakeholder involvement. Gaming companies, new cabinet ministers, and freshly-appointed bureaucrats will hold sway, and a united front from the gaming industry could lead to effective self-regulation or co-regulation.

Crypto regulation to follow international trends

The Ministry of Finance is leading inter-ministerial efforts to create a template for crypto regulation, an activity that is likely to continue despite changes in government. This is because India is a key stakeholder in the G20 process on crypto regulation, and the new G20 president, Brazil, is proactive in its push to drive international consensus on the issue. 

Smooth sailing for data protection rules

Initially part of the 100-day agenda, the data protection rules are likely to pass unchallenged. However, implementation might be delayed due to a natural reordering of priorities within the Ministry of Electronics and Information Technology, based on the next cabinet minister’s vision for digital markets. Tech companies may advocate against technical challenges that may arise via the rules, such as the inclusion of electronic records and dashboards to manage user consent and data breach notifications. 

Key bills and regulations remain unfinished business

The BJP used its majority to swiftly pass critical tech laws in Parliament. In 2023, the Modi government passed the Digital Personal Data Protection (DPDP) Bill in 53 minutes. Similarly, the Telecommunications Bill was passed when two-thirds of the Opposition was missing in Parliament. The incoming government will have to adopt more deliberative methods.

The contentious Broadcast Services (Regulation) Bill, 2023, which errantly clubs streaming services with television within the definition of broadcasting, may face more resistance in parliament if not reformed.

Similarly, the finalisation and passage of the draft Digital Competition bill, seems unlikely without a clearer justification rooted in the public interest. It remains controversial due to its broad and prescriptive nature, garnering support from narrow protectionist lobbies only. 

The proposed Digital India act (DIA), still a work in progress, championed by the erstwhile Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, is already delayed due to design challenges. Without a strong internal champion, the DIA may not resurface for another year or two. 

Meanwhile, we can expect amendments to the Information Technology Rules 2021, especially since tougher social media regulation has wide political support.

And finally, content blocking procedures and other aspects of telecom rules need thorough deliberation and parliamentary sanction to avoid overreach and ensure all checks and balances. 

On the whole, the next phase of public policy making promises to be exciting and consultative – an excellent time to tune in to the twists and turns and map technology’s real-world impact. 

Vivan Sharan is Partner at Koan Advisory Group. Views expressed are personal. 

<a href="https://storyboard18.com/special-coverage/pm-narendra-modi-took-oath-for-record-third-term-see-full-list-of-members-of-his-council-of-ministers-33700.htm">Read more: PM Narendra Modi took oath for record third term; See full list of members of Council of Ministers</a>

POLICY