Date : 27/06/2023

Relevance –

• GS Paper 2 – Government policies and Interventions,
• GS Paper 3 – Recent Technological Advancement – Digitalization

Key Words – Keywords: Digital India Bill, Regulatory framework, Intermediaries, Risk assessment, Online safety

Context

The Ministry of Electronics and IT in India has initiated consultations on the proposed "Digital India Bill" to revamp the existing Information Technology (IT) Act, which has been in place for over two decades. This new legislation aims to address emerging challenges in the digital space, including user harm, competition, and misinformation. The Union Minister of State for Electronics and Technology, Rajeev Chandrasekhar, has stated that the first draft of the Bill is expected to be released by the end of June. The implementation of this Bill has significant implications not only for India but also globally, as it could reshape how technology is regulated.

Inadequacy of the Current Regulatory Regime:

The current IT Act defines "intermediaries" as entities that mediate between users and the Internet. However, the classification of intermediaries under the IT Rules lacks specificity and includes a broad range of services such as social media platforms, video communications, matrimonial websites, and even online comment sections. The obligations imposed on these intermediaries, including stringent timelines for responding to law enforcement requests and content takedown requests, are similar across the board. This one-size-fits-all approach fails to account for the varying degrees of risk and harm associated with different types of intermediaries.

International Frameworks and Lessons:

Several countries have taken steps towards proportionate regulation of intermediaries. The European Union's Digital Services Act presents a well-developed framework with exemptions and three tiers of intermediaries, each carrying different legal obligations. Australia has also implemented an eight-fold classification system, with industry-drafted codes governing social media platforms and search engines. These countries require intermediaries to conduct risk assessments based on potential exposure to harmful content. The Indian government can draw insights from these frameworks while formulating its own regulatory approach.

Focus Areas for India:

To ensure a future-proof regulatory framework, India should adopt a classification system that allows for flexibility as technology evolves. Instead of highly specific categories, a few defined categories should be established, with intermediaries required to undertake risk assessments. Micro and small enterprises, as well as caching and conduit services, could be exempted from major obligations, while distinguishing communication services from other forms of intermediaries such as search engines and online marketplaces. Non-communication service intermediaries could still be mandated to appoint a grievance officer, cooperate with law enforcement, identify advertising, and remove problematic content within reasonable timelines.

For communication service intermediaries, risk assessments should be conducted based on active user numbers, the risk of harm, and the potential virality of harmful content. Larger communication service platforms, like Twitter, could be subjected to additional obligations such as appointing India-based officers and establishing in-house grievance appellate mechanisms. Implementing circuit breakers to slow down content propagation may also be considered as a means to curb virality.

Implementation and Industry Collaboration:

To ensure the effectiveness of the proposed approach, clear metrics for risk assessment and appropriate thresholds should be defined. These metrics should be regularly reviewed in consultation with industry stakeholders. By establishing a framework that promotes accountability and online safety while reducing the burden on a large number of intermediaries, India can create a regulatory environment that aligns with the government's objective of fostering a safer internet ecosystem and supporting business growth.

Conclusion:

The introduction of the proposed Digital India Bill presents an opportunity to upgrade the existing legal regime and redefine the regulation of technology in India. By adopting a classification framework that considers evolving technological landscapes, the government can create a flexible and future-proof regulatory environment. Such an environment would enhance accountability and online safety while reducing undue legal obligations for intermediaries. By striking the right balance, India can lay the foundation for a digital future that promotes innovation, supports business growth, and ensures a safer internet ecosystem.

Source – The Hindu