Do you think that privacy law should disproportionately increase cost of business for start-ups in the country? Analyse in the context of establishment of Data protection authority. (200 Words)
Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· Access to high-quality data is enable entreprenerus to provide micro-credit to the under-banked, ed-tech solutions to students in the smallest towns, and cheaper forms of medical diagnostics to the most vulnerable.
· The Personal Data Protection Bill is meant to protect Indians’ rights over their data, and envisions a Data Protection Authority (DPA) that will enforce good data practices by public and private institutions. This is a timely and welcome move, since it will help minimise data-based harm to Indians.
· However, India has also set itself a goal of a $1-trillion digital economy. This ambitious target will require it to develop a thriving start-up ecosystem. It is therefore important that the privacy bill does not lead to an uneven playing field for them. This is not an unfounded risk, as evidence from other countries shows.
· Europe adopted General Data Protection Regulation its privacy law in 2018. This could be driven by many factors, including big tech’s ability to devote more resources to compliance and reduce data access for smaller firms. Investors have responded to these market signals as well.
· Therefore, India’s privacy law should not disproportionately increase the cost of business for start-ups vis-a-vis big tech and other large incumbents. We have four suggestions on how this level playing field can be achieved.
· To start with, the DPA could consider the differential impact on small businesses while formulating regulations under the law. This can be achieved by amending Section 94(1) of the Bill to require that the DPA conduct cost-benefit analysis while making rules, and explicitly consider the impact on small businesses, among other factors.
· Long legal battles are disproportionately expensive for small businesses. They might also hesitate to go to court against a DPA order for fear of retribution.
· The DPA would, therefore, benefit from listening to all stakeholders, including start-ups. One way to do this is through board representation. Currently, the board of the DPA consists of five of its senior employees.
· Data protection regulation is at a nascent stage around the world. Just as India is seen as a global leader in the design of its “digital infrastructure”, it has an opportunity to be a global leader in data protection.
Shivangi 5 years
Please review.
IAS Parliament 5 years
Good attempt. Keep Writing.
