Digital India Bill 2023: Key Provisions, Stakeholder Perspectives

The Digital India Bill 2023 aims to replace India’s existing Information Technology Act of 2000 and provide comprehensive oversight of the digital landscape. It seeks to address modern challenges like cybercrime, data protection, deepfakes, and online safety. The Bill introduces a classification system for intermediaries based on risk and size, allowing tailored regulations. It proposes a dedicated internet regulatory authority for effective governance. However, debates have arisen with respect to certain provisions, particularly regarding safe harbor, granting legal immunity to intermediaries for user-generated content, with stakeholders having different views on the Bill’s scope and applicability.

The upcoming Digital India Bill 2023 is set to replace India’s existing Information Technology Act (IT Act) of 2000. This new legislation has been designed to establish comprehensive oversight over India’s digital landscape, effectively tackling contemporary challenges like cybercrime, data protection, deepfakes, competition among internet platforms, online safety, and the negative impact of artificial intelligence (AI).

Find Business Support

Gain the Intelligence Needed to Make Informed Decisions for Your Asia Business

This move is expected to have significant implications for businesses operating in India’s digital landscape.

Aligned with India’s goal of achieving a US$1 trillion digital economy by 2025-26, the Digital India Bill aims to foster global innovation, entrepreneurship, and establish India as a trusted player in the global digital value chains.

Recent reports suggest that the draft of the Digital India Bill will soon be released for public consultation by the federal government.

What is the Digital India Bill 2023?

The primary objective of the Digital India Bill is to streamline and unify existing laws concerning the digital domain. It must be noted that this Bill will work in conjunction with other notable legislation and policies, such as the Digital Personal Data Protection Act, the National Data Governance Policy, the Indian Penal Code amendments for cybercrime, etc. Together, these laws and policies are set to establish a comprehensive framework aimed at governing different facets of the digital sphere in India.

Key provisions under the Digital India Bill

The Digital India Bill encompasses the following key provisions:

• Classification of intermediaries: The Digital India Bill introduces a classification system for intermediaries, categorizing them into various groups based on their risk and size. These intermediaries include social media platforms, e-commerce platforms, AI platforms, and fact-checking platforms.
  By implementing this classification, the Bill allows for customized regulations that are specifically tailored to each category of intermediaries. This approach ensures that appropriate and relevant rules are applied to different types of intermediaries, taking into account their specific characteristics and potential impact on the digital ecosystem.

• Risk assessment for intermediaries: As per the Digital India Bill, intermediaries are mandated to perform risk assessments, which are then utilized to classify them based on their respective levels of risk. This classification system ensures that intermediaries are subject to appropriate regulations that match the level of risk they may pose in the digital space. By conducting these risk assessments, the Bill aims to implement targeted and effective measures for each category of intermediaries, promoting a balanced and secure digital environment.
• Establishing a dedicated internet regulatory authority: The Bill introduces the establishment of a dedicated internet regulator, akin to existing regulatory bodies, such as the Telecom Regulatory Authority of India (TRAI) or the Securities and Exchange Board of India (SEBI).
  This new regulator will be responsible for overseeing and managing internet-related matters, ensuring effective governance and compliance in the digital domain.
  Just like other regulatory bodies, the internet regulator’s primary focus will be to address and regulate various aspects of the online space, promoting fair practices, safeguarding user interests, and maintaining a well-regulated digital environment.
• Designating punishable offences: Under the Digital India Bill, the Ministry of Electronics and Information Technology (MeitY) is empowered to designate certain activities as punishable offences. These may include deliberate dissemination of misinformation, identity theft, cyberbullying targeting children, and other similar activities. By classifying these actions as offences, the Bill aims to address and combat the negative consequences of such misconduct in the digital space. This provision enables MeitY to take appropriate measures and establish legal frameworks to prevent and penalize individuals or entities involved in these harmful activities, promoting a safer and more responsible digital environment.
• Penalties for violations and user harms in emerging technologies: The Digital India Bill introduces penal provisions to tackle violations and user harm that may arise from emerging technologies, including generative AI platforms like ChatGPT. These provisions are designed to address any potential misuse, breaches of regulations, or negative consequences that may occur in the context of these technologies.
• Modifications to existing internet platform rules: As part of the provisions in the Digital India Bill, certain fundamental rules that currently apply to internet platforms, such as safe harbor norms, may undergo revisions or modifications. These changes aim to adapt the existing rules to the evolving digital landscape and address emerging challenges related to content moderation, liability, and user safety.
• Ensuring platform accountability: The Digital India Bill will legally empower the government to ensure that platforms are held accountable for hosting prohibited content. This includes content such as pornography, harmful material for children, copyright infringement, misleading information, impersonation, content that undermines India’s unity and integrity, computer malware, banned online games, and any other illegal material.

Why India needs a new legislation to regulate its digital landscape

With India’s internet user base reaching a substantial 850 million and expected to grow further to 1.2 billion by 2025, the digital landscape presents significant opportunities and challenges. As the online community expands, there is a growing concern over certain negative aspects, such as cyber trolling, gaslighting, hate speech, and the spread of misinformation, which have seen an increase. Addressing these issues in a constructive manner is crucial to foster a safe and conducive environment for all internet users.

To address these challenges and keep up with advancing technology, a new legislation is needed that will achieve the following:

• Revolutionize global technology regulation: Introduce a regulatory framework that is adaptable to the evolving digital landscape and capable of addressing global technological advancements.
• Introduce classification framework with clear risk assessment: Establish a classification framework that incorporates regular reviews with industry experts to ensure accurate risk assessment and appropriate regulations for different types of intermediaries.
• Provide in-house grievance appellate mechanisms: Mandate the development of in-house grievance appellate mechanisms within platforms, allowing users to seek recourse for issues they encounter online.
• Introduce circuit breakers: Circuit breakers to be introduced as a measure to handle issues of rapid virality, helping to mitigate the spread of harmful content or misinformation.
• Address the nuances of the cybersecurity landscape: Account for the complexities and nuances of the current cybersecurity landscape, strengthening measures to combat cyber threats and ensuring the protection of user data.
• Data privacy rights: Prioritize addressing data privacy rights, establishing guidelines and regulations to safeguard personal information in the digital space.

Find Business Support

How we can help companies leverage growth in the trade and e-commerce industry

The existing IT Act, 2000 has broad definition of social media intermediaries (SMIs), encompassing various services like video communication and matrimonial websites. However, all intermediaries, including ISPs, websites, e-commerce platforms, and cloud services, face strict obligations that require them to respond to law enforcement requests for content takedowns within 72 hours. This increases operational costs and exposes intermediaries to greater legal liability, without effectively reducing internet-related risks.

Controversial aspects and stakeholder perspectives

The Digital India Bill has sparked considerable attention and debate among stakeholders due to several noteworthy provisions, including:

• Safe harbor: The concept of safe harbor, provided by Section 79 of the IT Act, 2000, grants legal immunity to online intermediaries for user-generated content on their platforms. This protection has played a vital role in enabling the success of platforms like Facebook, Twitter, Instagram, YouTube, and WhatsApp in India. However, there are differing opinions regarding whether safe harbor should exist as it is currently defined.
  Stakeholders have suggested retaining safe harbor for classic intermediaries that do not engage in content moderation, while others argue for a more nuanced approach considering the evolving nature of online platforms and the diverse participants on the internet. Technology experts emphasize that safe harbor is essential for preserving freedom of speech on the internet, as it allows platforms to take action against illegal content while maintaining a balance. These differing perspectives highlight the complexities surrounding the safe harbor provision and the need for careful deliberation on its scope and applicability in the current digital landscape.
• Transparency in data processing: The Bill may require companies to provide clear information to consumers regarding the processing of their personal data. This provision aims to enhance transparency and grant individuals more control over their personal information.
  Stakeholders have expressed diverse views on this aspect, with some advocating for stronger data protection measures and others raising concerns about potential compliance burdens for businesses.
• No-go areas for AI and machine learning: The legislation might define specific “no-go areas” for companies and internet intermediaries utilizing AI and machine learning in consumer-facing applications. The intention behind this provision is to prevent potential harm to users, and it proposes severe penalties for violations.
  Stakeholders have expressed varying opinions on the scope and implementation of these restrictions, with some emphasizing the importance of responsible AI use and others highlighting the need for clarity and proportionality in defining these boundaries.
• Curbing big tech influence: Provisions may be included in the Bill to address the influence of major tech companies, such as Google, Apple, and Meta, in order to prevent potential misuse of their market dominance.
  Stakeholders have divergent viewpoints on this matter, with some supporting measures to promote competition and protect smaller players, while others emphasize the need for balanced regulations that encourage innovation and maintain a competitive digital ecosystem.
• Misinformation: The Bill recognizes the issue of misinformation and proposes measures to combat its spread, safeguarding the public from false or harmful content.
  However, finding the right balance between curbing misinformation and preserving freedom of speech has become a critical point of contention among stakeholders. Striking the appropriate balance is challenging, as it requires distinguishing between harmful misinformation and legitimate expression of ideas.

Also read

• India’s Global Capability Centers Market Estimated to Reach US$110 Billion by 2030
• Investing in India’s IT Sector: Opportunities for Foreign Companies

• Previous Article PM Modi’s Official Visit to the US: Technology Cooperation, Clean Energy Transition, and Strategic Goals
• Next Article Selling to the Indian Market – New Issue of India Briefing Magazine Out Now