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4 September 2025

Tech Ticker Issue 69 — August 2025

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Ikigai Law

Contributor

Ikigai Law is an award-winning law firm with a sharp focus on technology and innovation-led businesses. We advise clients from high impact startups to mature market-leading companies and are often at the forefront of policy and regulatory debates for emerging business models. Our TMT practice is ranked by Chambers and we were named Boutique Law Firm of the Year in 2019 by Asian Law Business.
Welcome back! How was the Independence Day long weekend? Did you blast AR Rahman's Vande Mataram on loop, show up at your colony's flag hoisting, or gulp down samosas...
India Media, Telecoms, IT, Entertainment

Our latest TechTicker edition "Rains outside, ruckus inside?”, peeks into the splashes from the Parliament — including the online gaming and income tax bills, updates on dark patterns and data protection and two recently released Standing Committee reports.

Rains outside, ruckus inside?

Welcome back! How was the Independence Day long weekend? Did you blast AR Rahman's Vande Mataram on loop, show up at your colony's flag hoisting, or gulp down samosas and boondi ladoos like it was an Olympic sport? Maybe you headed out for a mini vacation and enjoyed the rain?

But now we're back and the blues this week have been bluer than the Ashok Chakra — we'd forgotten our passwords, job descriptions, and for those of us in good old Bengaluru, what the sun looks like.

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Source: Good old Instagram

But hey, the tech space didn't take a nap — it's been buzzing louder than your family's WhatsApp group. So, think of us as your friendly back-to-work reboot button: here to remind you what's happening in tech policy while you ease back into work (and muster the will to join those morning check-in calls).

Deep-dive

DCB getting ghosted? Not really.

On August 11, 2025, the Standing Committee on Finance (SCoF) released its twenty-fifth report, the “Evolving Role of Competition Commission of India (CCI) in the Economy, particularly the Digital Landscape”. The big takeaway? The CCI should stop being a post-crime detective and start acting like a neighbourhood watch. In policy-speak, that means moving from reactive enforcement to ex-ante regulation. In case you are wondering, no, ex-ante doesn't mean your ex's antics, or a new kind of pasta — it's the idea of setting rules preventing anti-competitive practices before they occur, rather than cleaning up afterward.

While the rumour mill say that the government may withdraw or dilute the draft Digital Competition Bill (DCB) (draft ex-ante framework to regulate large digital enterprises), others suggest that a revised draft of the DCB is in the works and this one may have a more consultative flavour (like looping in IT ministry on tech companies' related competition cases). Meanwhile, the SCoF report seems to continue backing the ex-ante approach and provisions.

Some of SCoF's key recommendations include:

  •  · Introduce ex-ante regulations:  SCoF wants CCI to be more proactive than reactive towards digital markets, hence the need for ex-ante rules — the idea is to use this framework to address complexities posed by practices like tying and bundling.
  • · Narrow the net:  When it comes to defining who qualifies as a “Systemically Significant Digital Enterprise” under the DCB, SCoF says: don't go overboard. The aim should be to capture real gatekeepers without dragging fast-growing Indian startups into the net.
  •  · CCI needs a makeover:  Recognising that the newly created Digital Markets Division is currently underfed and overworked, SCoF wants specialists in AI, data science, and digital economics to be quickly brought on board (even if it means through flexible contracts). The committee also recommends a funding boost to CCI and urges the regulator to invest in university and foreign watchdog collaborations to keep its toolkit sharp.
  •  · Cut the legal queue:  Building up legal capacity so CCI orders don't collapse in appellate courts; and tighten case timelines so that high-impact cases don't drag on forever.
  • Protect the small guys:Issue clear guidelines against predatory pricing and anti-competitive deep discounting, while ensuring that smaller market participants have fair access to data.
  • Play nice with regulators (in India and abroad):Expanding MoUs with foreign competition authorities to address cross-jurisdictional issues, while also institutionalising coordination with domestic regulators like TRAI, SEBI, as well as the upcoming Data Protection Authority.
  •  · Study the market Conduct proactive sector-specific market studies in emerging digital areas like AI, where new business models disrupt traditional competition dynamics.
  •  · Don't kill innovation: SCoF warns against over-regulating India's tech ecosystem. The DCB should roll out in phases, giving firms time to adapt, with rules tough enough to keep gatekeepers in line but light enough to let innovation breathe.

The Report highlights India's move toward ex-ante regulation of digital markets. With a strong emphasis on evidence-based and tailored legislation, it remains to be seen how the government translates these recommendations into law; and whether they strike the balance between keeping gatekeepers in check and ensuring India's innovation story continues to thrive.

Peeking into the Parliament

This year's Monsoon Session — the rain gods have been doing their bit to keep the name literal — kicked off on July 21, 2025. True to form, it didn't take long for tempers to flare: the opposition opened with sloganeering and staged walkouts, setting a stormy tone both inside and outside the House. Grab your umbrella and take a quick walk with us through some of this session's splashes:

  • Changing the rules of the game:Just as we thought the session was coming to an end, both houses of the Parliament passed The Promotion and Regulation of Online Gaming Bill, 2025 – which establishes India's first central framework on online gaming. The bill classifies online games into three categories: (i). online social games (games without stakes or wagers, played for entertainment or skill development — which may be offered through a subscription or entry fee), e-sports (competitive single or multiplayer games, not involving staking or wagering) and online money games (involving staking or wagering with the expectation of winnings). The central government will decide which game falls under which of these three categories. This classification is important because while online social games and e-sports are promoted, online money games are subject to a complete ban. The real money gaming (RMG) industry has called this move a death knell which would potentially wipe out 2 lakh jobs, 400 companies and put at risk an investment of over INR 20,000 crore. Many companies who offered RMG on their platforms are closing their operations. And this isn't the end of the backlash: Karnataka's IT minister Priyank Kharge called the bill a “knee-jerk” reaction which would hurt India's digital economy and startups are already preparing a Supreme Court challenge against the bill questioning its legislative competence. Want to know more? Read our analysis and FAQs here.
  • Report card on cybercrime?:  The Parliament's specialized committee on Home Affairs (they deal with internal security and conduct audits on issues like cybercrime, disaster management etc.) submitted its 254threport on “Cybercrime – Ramifications, Protection and Prevention” in the Rajya Sabha on August 20, 2025. The report takes stock of existing protection mechanisms, the role of key institutions, and outlines prevention strategies in cybersecurity — before setting out its recommendations. These recommendations broadly include unified cybercrime law, IT intermediary registration, stricter penalties for cyber offences and victim compensation for financial, psychological, or reputational harm; and other specific recommendations for ministries, regulators or law enforcement/ technical agencies. (Spoiler: More on this in the next edition!)
  • 3 minutes, 60-year-old law:The Lok Sabha speed-ran the Income Tax Bill, 2025 — passed in just three minutes (faster than we can make Maggi). The new law ditches the 60-year-old tax regime and hands tax authorities power in the “virtual digital space” enabling them to access your emails, socials and trading/ banking apps by bypassing passwords.
  • Govt v. fake news:Minister of State for Ministry of Information and Broadcasting (MIB), Dr. L. Murugan said that tackling misinformation is a “sovereign duty.” He spotlighted the IT Rules (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021) (with blocking powers under section 69A of the IT Act, 2000) and the Press Information Bureau's Fact Check Unit (FCU). Meant to verify government-related news and issue corrections on social media, the setting up of FCU was struck down by the Bombay High Court in 2024, however, an appeal is reportedly pending.
  • New tricks, old rules?:Acknowledging growing risks from AI-generated deepfakes, the Ministry of Home Affairs (responsible for the internal affairs of the country) has ruled out a standalone law. Instead, its doubling down on existing legal toolkits including the IT Act, IT Rules 2021, DPDP Act, and Bhartiya Nyaya Sanhita (successor to the Indian Penal Code, 1860) — which already address impersonation, privacy violations, and platform liability. At the same time, the IT ministry has said they are trying to stay future-ready with the multi-pronged strategy of these existing laws, CERT-In advisories, and research projects under the “Safe and Ethical AI” pillar of IndiaAI mission.
  • 7000 opinions in, no timelines out:The IT ministry told the Parliament it has received over 6,915 public responses on the digital personal data protection (DPDP) rules — the framework that will finally put India's privacy law into action. But the final rules and key detail everyone's waiting for — when the rules will kick in — is still missing. Notably, industry voices are growing louder. The Internet and Mobile Association of India (IAMAI) warns that vague provisions, especially regarding the exemption from the application of the law given to “publicly available” personal data, could force AI developers to verify every data source, throttling innovation and hit startups hardest. While the government won't amend the Act, it plans to issue clarifications via FAQs.

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Source Created by Vidushi (who is running out of ideas for DPDP memes)

  • 13 shades of manipulation:  Members of the parliamentgrilled the Consumer Affairs ministry about regulation of dark patterns (sneaky design strategies used to trick customers). The ministry reminded that the Guidelines for Prevention and Regulation of Dark Patterns, 2023 identify 13 manipulative designs; and a June 2025 advisory directed platforms to self-audit and file declarations. Enforcement highlights? Mass refunds for COVID flight cancellations, penalties, and product takedowns — basically, “don't mess with consumers” in action.
  • Tech bills, etc:Despite two days being allocated for private members' business, the planned tech-heavy slate never made it to introduction due to repeated adjournments. These included proposals like an AI Ethics & Accountability Bill, a Deepfake Regulation Bill, new frameworks for digital content and OTT, online gaming regulation and an ad-ban for online gambling, amendments to the IT Act and DPDP, a sectoral regulator-promoter for IT, and even a Machine-Created Intellectual Asset Bill.

Connecting the dots

RBI releases FREE-AI report

On August 13, 2025, the central bank of the country released its Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) committee report for the financial sector. It addresses risks such as algorithmic bias, decision explainability, and data privacy — aiming to harness AI's potential while safeguarding against misuse. Guided by 7 principles — Trust, People-First Approach, Innovation over Restraint, Fairness and Equity, Accountability, Understandable by Design, and Safety, Resilience & Sustainability, the committee proposed 26 actionable recommendations to balance innovation with safeguards. Bonus brag: our team members' op-ed got a shoutout in the report!

Misinformation about the misinformation bill?

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Source:  Pinterest

Karnataka IT Minister Priyank Kharge has refuted claims that the state government has released any version of the Karnataka Misinformation and Fake News (Prohibition) Bill. In an interview, the minister has said that the draft is undergoing interdepartmental consultations; and will be published for public comments once finalized. He also clarified that the draft circulating in the media is not from the government but appears to be based on a private member's Bill. So far, reports suggest that there have been at least two versions of the bill; but with the Minister's clarification, the bill we remain a wait and watch.

Andhra Pradesh is also now considering introducing its own misinformation bill, next state assembly session. This bill reportedly looks to prevent online abuse of women, especially in politics. This bill is likely to have stringent penalties for the spread of misinformation and a government set up a fact-finding committee to scrutinize social media content.

Block. Back. Block — repeat

The broadcasting ministry blocked 25+ OTT platforms — including Ullu, ALTT, Desiflix, and Big Shots—for hosting prohibited content, despite earlier warnings. The standing committtee on IT had noted that many of these platforms had resurfaced using new IPs, names, or even AI tricks.

AI-impact summit prep starts

The upcoming India AI Impact Summit, scheduled in February 2026, at Bharat Mandapam, will spotlight AI's impact on People, Planet, and Progress — through 7 themes: Human Capital, Inclusion, Safe and Trusted AI, Resilience, Science, Democratizing AI Resources, and Social Good. The government has released a global call for proposals inviting stakeholder groups, including governments, academia, multilateral bodies, the private sector, non-profits, think tanks, and civil society, to host affiliated pre-summit events on the sidelines of the Summit, between August 11, 2025, and January 31, 2026. Formats include workshops, panel discussions, conferences, hackathons, research presentations, and industry forums.

From the courtroom to your inbox

  •  · Pre-approval out, self-check in: Supreme Court dismissed the Indian Medical Association's (IMA) 2002 plea against Patanjali Ayurveda for allegedly running misleading ads, disparaging modern medicine. With Rule 170 of the Drugs and Cosmetics Rules repealed, Patanjali no longer needs prior approval to advertise AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, Sowa Rigpa, and Homoeopath) products. In parallel, to curb misleading ads, the broadcasting ministry has mandated self-declaration certification mechanism across print, broadcast and digital media platforms for food and health related ads.
  • News v. bots:  TheDigital News Publishers Association (including heavyweights like Indian Express, Hindustan Times, and NDTV) jumped into news agency ANI's lawsuit against OpenAI in Delhi HC. The claim? ChatGPT scraped, stored, and repurposed copyrighted content without a license, potentially turning AI into the sole news source while starving original publishers of traffic and ad revenue. The hearing on Aug 5, 2025 saw DNPA counsel warn that even temporary AI storage could crumble digital news and questioned the court's reach over US servers. This case could decide if AI needs a subscription to Indian news, or if bots get a free pass.In a separate matter, ANI challenged Unacademy to remove ANI's copyrighted videos from its YouTube channel — even if they were “just educational”; and the court asked for all infringing content to be removed, since such reproduction did not happen with the agency's prior authorization.
  •  · Teens and screens:  On July 24, 2025, the Allahabad High Court raised alarm on the disastrous” and “nefarious” effects of TV, internet, and social media on adolescents. The court noted even the government struggles to tame these digital beasts. While no concrete directions were issued, the commentary signals growing judicial concern—and could fuel future debates on age checks, content moderation, and parental controls.

Reading reccos

  • Shadma Sheikh reports behind-the-scenes of how India is building its own sovereign AI and its potential to be a replicable model for the Global South in theMint.
  • Break-down of myths surrounding the creator economy in theMint. 
  • Story on countries (Mexico, Malaysia and India) that want to be the next big semiconductor hubs inRest of World.

Shout-outs!

  • We got cited... by THE RBI!:  Our colleagues Aarya Aloke Pacchisia and Rutuja Pol'sop-ed on India's AI Safety Institute was cited by The Reserve Bank of India fresh release: the FREE-AI report. This is a really proud moment for us — showing how our ideas are shaping the country's top policy conversations!
  • DPDP workshop finale:After three cities, 250+ in-house counsels, and rich discussions across sectors from retail and telecom to pharma, health, education, manufacturing, automotive, payments, and media — we wrapped up our DPDP workshop series in Delhi on a high note.
  • Freshly backed op-ed on SEBI:Astha Srivastava and Bobby J. from our team broke down how SEBI is approaching the use of AI/ML in the securities market. 
  • Bonding over art:Vidushi from our team — who is the Her Forum Chapter Lead for Bengaluru — organized a session for women lawyers blending creativity, conversations and connections. If you're looking to connect with your peers in Bengaluru, feel free to reach out!

Signing off,

Ticker team for this edition:  Chikita  NehaaNirmalPallavi Vidushi

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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