Saturday, January 30, 2021

Internet Shutdowns in India: From Kashmir to Haryana

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Vaishnavi Krishna Mohan

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Internet Shutdowns in India: From Kashmir to Haryana

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Global Views 360

Publication Date

January 30, 2021

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Representative Image no Internet

Representative Image no Internet

India has one of the world’s largest internet user base and also has the maximum number of internet shutdowns. In 2018, India recorded 134 shutdowns which is the highest the country has seen yet. The article delineates the implications of Internet shut-down—while looking at specific cases of Kashmir, CAA-NRC, and Farm Bill Protests—and the legal procedures associated with the same.

The internet shutdown imposed in Kashmir on 4th August 2019, when Article 370 of the Constitution was abrogated by the Parliament of India recorded the longest shutdown in India.  In the initial days, landline and mobile services were restricted as well. While the ban on landline and mobiles was lifted soon, 2G services were restored for “verified users” on 25th January 2020. Only whitelisted websites could be accessed and social media remained prohibited. A new order was passed on 4th of March 2020, by the administration of J&K, according to which the whitelist was removed but internet could only be accessed using 2G on verified SIM's. As Kashmir is still languishing without high-speed internet, at least 7 million have been affected due to the shutdown.

Anti CAA-NRC Protests in Lucknow | Source: Youtube

In December, 2019, during the notable protests against the Citizenship Amendment Act, the authorities in the states of Assam, Meghalaya and Tripura severed internet connection as they supposedly cited a threat of violence and false rumors. Parts of West Bengal and Uttar Pradesh were also under a digital lockdown. Internet shutdowns come with a great cost. Every time the central or state government decides to cut the internet, a large number of students, businesses, travelers, online journalists and influencers are affected resulting in a huge monetary loss. According to a report by TopVPN, India has lost nearly $2.7 billion due to all the 83 internet shutdowns in 2020 alone. This loss is greater than the combined loss of the next 10 countries in the list. The report also revealed that India also stayed offline for longer than any other country, at 8,927 hours last year. The largest contributor to this figure is the 213-day shutdown in Kashmir.

The Kashmir Chamber of Commerce reported that the cumulative loss due to the internet shutdown and restriction in the region was $5.3 billion. The authorities say that these shutdowns are simply to stop the spread of dangerous misinformation which they believe moves faster in social media like Facebook and messaging apps like WhatsApp. However, the internet shutdowns are usually enforced after a piece of misinformation has been spread widely. In 2018, 33 of the shutdowns were justified by the government claiming that they wanted to curb dis/misinformation. The problem is that, when you cut people off from being able to access information, the only access they have is to previous misinformation. In fact, cutting off the internet can turn a previously predictable situation into a highly volatile one. A study conducted by Stanford suggested that mass mobilization in India can occur even in the absence of social media and digital platforms. Another report published by Stanford stated, “Rumours and disinformation continue to spread with or without access to digital communication networks, whose primary role is that of accelerators of information diffusion.” In addition to this, the study found that internet shutdowns force protesters to substitute non-violent tactics for violent ones which are less reliant on effective communication and coordination. In April 2019, Sri Lankan government shutdown all social media platforms as a result of the Easter Suicide Bombings. The IFCN (International Fact-Checking Network) reported that fake news was rampant despite the shutdown. IFCN also noticed an increase in false reports on Facebook from that area. However, the above mentioned facts did not have the potential to stop India from once again disregarding the negative implications of Internet shut-down. India continues to be indifferent.

Protesting farmers at Singhu Border | Source: Harvinder Chandigarh via Wikimedia

The ongoing farmers’ protest in India against the three farm bills (now acts) passed in the parliament turned violent on 26th of January. A group of the protesting farmers who were on a tractor rally, deviated from their route and entered the Red Fort. The Union Ministry of Home Affairs temporarily suspended internet in Singhu border, Ghazipur border, Tikri border, Mukarba Chowk and Nangloi for 24 hours. On 29th of January, the State government of Haryana ordered telecom operators to shut down all mobile internet services, all SMS services, and all dongle services in 17 of the 22 districts of the state until 5 pm on January 30, 2020.

The shutdown was based on the grounds of preventing protestors from mobilising through social media and to constrain the plague of disinformation, which was spread due to the tensions at farmer camps between unidentified miscreants, farmers and later the police. But there was a lack of media coverage of the police violence while they highlighted the protestors’ response to it, essentially disseminating biased disinformation which they ‘intended’ to curb with an internet shutdown.

The Indian Telegraph Act, 1885 permits the government to block internet access in case of a public emergency. After 2017, Temporary Suspension of Telecom Services (Public Emergency or Public Safety) Rules was deployed in cases of internet shutdowns. The Rule 2(1) describes the protocol and powers for the ‘competent authority’ to issue a direction for the suspension of Internet.  The ‘competent authority’ here refers to the Home Secretary of the Union government or the State government. If obtaining prior directions from either of these authorities is not feasible, the order may be issued by an officer, not below the rank of a Joint Secretary to the Government of India. This officer should be duly authorized by the competent authority to issue suspension order and must receive confirmation from the competent authority within 24 hours of issuing such order. In January 2020, the Supreme Court directed that in addition to the Telecom suspension rules, all internet shutdowns must be made public and the orders must be a committee must review all internet shutdown orders once every seven working days to ensure if it is in accordance with the Telecom suspension rules. In November 2020, a new rule was introduced stating that a single order cannot authorize a shutdown for a period exceeding 15 days. Despite several regulations, the Internet Freedom foundation found out that there is low compliance by state governments. Even in 2019, in multiple cities, including the national capital, the suspension orders were issued by the State Police. The New York times reported there were instances where local authorities of India ordered the shutdown with just a few phone calls to the local service providers.

In addition to repression of dissent, telecom shutdowns also have an impact on healthcare services, doctors and ambulances especially in the cases of violence when they certainly have a harder time communicating with people on the ground hence creating a vacuum of information.

Arbitrarily shutting down the internet is a fundamental right violation. The frequencies of internet shutdowns in India are highly alarming. Besides, it is ironic that in 2020, the government announced its plan to bring high-speed fibre-optic based broadband to all Indian villages in the next three years. While it is most certainly beneficial to those living in these villages and to those wanting to spread propaganda, all the effort would be insignificant if the nation continues to shut down the internet at this rate of recurrence.

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April 13, 2021 7:47 AM

Are India's Antitrust laws effective at controlling monopolies?

On 15th of July 2020, Reliance Industries Ltd (RIL) held its annual general meeting of the shareholders. The chairman and managing director Mukesh Ambani, announced that global tech giant Google would be investing $4.5 billion in Jio Platforms. Facebook also has acquired a 9.99% stake in Jio Platforms. This is the first time in the world that both the global tech giants have invested in the same entity. These investments have boosted the confidence for Jio Platforms and also for India’s growth but there have been questions and speculations about the potential anti-competitive makeup of these deals.

The objective of this article is to explore the interpretation and the effectuality of Antitrust laws in India.

Anti-competitive practices are those business practices which firms engage in to emerge as the or one of the few dominant firms, who will then be able to restrict inter firm competition in the industry in a bid to preserve their dominant status. The Collins English dictionary defines antitrust laws as those laws that are intended to stop large firms taking over their competitors by fixing prices with their competitors, or interfering with free competition in any way. These laws focus on protecting consumer interests and promoting a competitive market. The word ‘Antitrust’ is derived from the word ‘trust’. A trust was an agreement by which stakeholders in several companies transferred their shares to a single set of trustees.

In present-day India, talking about market dominance Reliance Industries Ltd (RIL), resembles American company—John D Rockefeller's Standard Oil Company—of the early 20th century. Mukesh Ambani holds the highest ability to influence markets and policy in every sector in which RIL is present—petrochemicals, oil, telecom, and retail. Many industry experts and critics suggest that Ambani has used his political clout to twist the regulatory framework in his favor.

Gautam Adani, founder of Adani Group | Source: Twitter

Furthermore, economic power in aviation infrastructure is clustering into a few hands as well. In 2019, the Adani Group bagged the 50-year concession to operate all the six Airports Authority of India-operated airports—Lucknow, Jaipur, Guwahati, Ahmedabad, Trivandrum, and Mangaluru—which were put up for auction. The company also obtained a controlling stake in ‘The Chhatrapati Shivaji Maharaj International Airport, Mumbai’ from GVK Airports. Moreover, Adani Group is now set to construct the Navi Mumbai International Airport. The group is now eyeing Indian Railways while they have already established an alarming monopoly in green energy and sea ports. While Airports are natural monopolies, one private company controlling more than 8 important airports is not good news to airlines.

India has established antitrust laws to promote competition. For 40 years, India followed the Monopolies and Restrictive Trade Practices Act 1969 (MRTP). This act was based on principles of import substitution and a command-and-control economy. However, over time several amendments had to be made to the act. In 2002, the Indian approved a new comprehensive competition legislation. This is called the Competition Act 2002. The act focused on regulating business practices in order to prevent practices having an appreciable adverse effect on competition (AAEC) in India. The act primarily regulates three types of conduct: anti-competitive agreements (vertical and horizontal agreements), abuse of a dominant position, and combinations such as mergers and acquisitions. The act lists out the cartel agreements that it intends to prevent. This list includes price-fixing agreements, agreements between competitors seeking to limit or control production, market-sharing agreements between competitors and bid-rigging agreements. These agreements are called “cartel” arrangements.

The competition Act is enacted by the Competition Commission of India (CCI), which is exclusively responsible for the administration and enforcement of the Act. It comprises a team of 2 to 6 people appointed by the government of India. The CCI has previously handled high-profile cases. In 2018, CCI imposed a fine of Rs135.86 crore on Google on the grounds that Google misused its dominant position and powers to create a search bias. In another important case, the CCI, ordered a probe into Idea, Vodafone and Airtel when Reliance Jio owner Mukesh Ambani lodged a complaint against the three for forming a cartel and denying Jio the POI required for network connection, causing multiple call failures. The Cellular Operator Association of India was also probed for encouraging the same.

In some cases, the Competition Commission has been successful in tackling activities that are against the free competitive market. However, critics and economists believe that the act is now unable to adapt to the changing business environment in e-commerce, telecom, technology and the government’s role in distorting competition. Demonetization and GST drove the formalization of the economy. One consequence of them was that bigger, better organized players gained at the cost of smaller ones with lesser resources. The Insolvency and Bankruptcy Code (IBC) was designed to solve the problem of non-performing assets (NPAs) of banks. But consequentially, it has also led to a consolidation in many sectors.  

However, CCI has expressed inability to consistently adjudicate punitive measures due to obligation in several cases. This points to the loopholes in the very provisions of the Competition Act 2002. In an Economic and Political Weekly (EPW) article, Aditya Bhattacharjea—an Economist—argues that even though the 2002 Act represents an improvement from the MRTP Act which was extremely restrictive, the present act also remains riddled with loopholes and ambiguities. According to Bhattacharjea, this creates unnecessary legal uncertainty, which acts in advantage of lawyers and law firms. For instance, the act allows the CCI to leave some scope of flexibility for “relative advantage, by way of contribution to the economic development.” Bhattacharjea argues that this may allow large firms to justify their anti-competitive practices in the name of development.

Mark Zuckerberg and Mukesh Ambani having online interaction after Facebook invested in Jio Platforms | Source: NDTV

Data portability plays a significant role in determining market power of certain firms. In 2017, the CCI closed cases against both WhatsApp and Jio involving allegations of predatory pricing and privacy violations. In both these decisions, the regulator did not consider the restrictions around data portability as a competitive advantage. The possible data leveraging advantage for the attempted monopolization could be the ‘portfolio effect’. Portfolio effect refers to increasing the range of brands, by bundling of telecom or messaging service and other service offerings or illegal vertical restraints, even predatory pricing. This in turn may lead to greater ability of further leveraging, deterring innovation and results in degradation of quality. Another possible advantage is explained as the theory of leveraging. The best example of leveraging is when Microsoft entered the media-player market by extending its quasi-monopoly on the operating systems market by taking advantage of the indirect network effects. In case of Facebook acquiring 10% of Jio’s shares, it is a concern that both entities could potentially use WhatsApp’s market dominance in telecom and social networking services and establish dominance in e-commerce market through anticompetitive acts.

There was a consensus among Indian policymakers at the time of the 1991 economic reforms that economic liberalization would eliminate the nexus between the business elites and the policymakers. On the contrary, the relationship between these two groups got further strengthened.

On the other hand, few critics and industrialists argue that extreme restrictions on growing companies hampers the progressive growth of the national economy. While RIL’s Jio looks like a cause for concern, the company has also saved Rs. 60,000 crores for annual savings in India. In addition to that, the entry of Jio to the telecom industry has led to a rise in data consumption and improved accessibility and affordability of the internet across the nation.

However, the concern still lingers as the question of whether this growth is a result of actual innovation or crony capitalism remains unsolved.

However, the fact that telecom, organized retail, ports and airports have two or three players controlling the bulk of the sector needs to be addressed. A healthy competition is quintessential for long-term growth and innovation. Harmful trade practices and cartelization does not only affect small manufacturers but also the general public.

The government, CCI and other lawmakers must closely examine the present laws and provisions and need to see if they are required to amend the act.

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