Karnataka Governor Promulgates Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025
On May 27, 2025, the Governor of Karnataka promulgated the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 ("Ordinance"), to safeguard the rights of platform-based gig workers and to institute a comprehensive legal framework for the provision of social security and welfare benefits to platform-based gig workers.
Applicability and Scope
Importantly, while the Ordinance is primarily applicable to and aimed at safeguarding the rights of Gig Workers (as defined below), it also extends its applicability to Aggregators (as defined below) and Platforms (as defined below). By doing so, the Ordinance establishes a comprehensive legal framework that enables effective regulation of the gig work ecosystem, ensuring accountability across all stakeholders.
Importantly, the Ordinance defines 'Platform' as any arrangement providing services through an electronic means, including organizing work at a particular location in return for payment, involving (automatic or human) decision-making systems. The Ordinance defines 'Aggregators' as a a digital intermediary for a buyer of goods or user of a service to connect with the seller or the service provider. The Ordinance specifically covers all Platform and Aggregators providing services, including (but not limited to) ride-sharing, food and grocery delivery, logistics, healthcare, and content or media services.
Furthermore, the Ordinance defines 'Gig-Workers' as individuals who perform work or participate in a work arrangement for a fixed rate of pay under contract terms, and includes all piece-rate work.
Key Features of the Ordinance
- Establishment of Welfare Board: Under the Ordinance, the Karnataka state government must establish the Karnataka Platform-Based Gig Workers Welfare Board ("Board"). The Board will include representatives of both Gig Workers and Aggregators/Platforms.
- Establishment of Welfare Fund: The Karnataka government shall also constitute the 'Karnataka Gig Worker's Social Security and Welfare Fund' ("Fund"), which shall, inter alia, receive individual contributions from Gig Workers and contribution in the from of welfare fee (between 1 to 5% of the total payout to the platform based gig-worker) imposed by the Platform in accordance with this Ordinance. The Fund shall be utilized in accordance with the rules as may be notified by the state government.
- Registration of Aggregators/Platform and Gig Workers: The Ordinance requires all Gig Workers operating in Karnataka, regardless of their domicile or the Platform, to register with the Board. In this regard, every Aggregator and Platform is required to register with the Board and submit a database of its Gig Workers within 45 days of the Ordinance's commencement. Upon receipt of such database, the Board will register the Gig Workers and issue each one a unique ID.
- Grievance Redressal Mechanism: The Ordinance further requires for Aggregators and Platforms to establish a grievance redressal mechanism to address any internal grievances raised by Gig Workers. The grievance raised by the Gig Worker is required to be closed within 45 days of the initial filing of such grievance. Further, if the Gig Worker is not satisfied with the internal grievance redressal as offered by the Platform, the Gig Worker is entitled to also approach the Board.
Read morehere.
Ministry of Information and Broadcasting Issues Executive Order Blocking Pakistan Based Content
On May 08, 2025, the Ministry of Information and Broadcasting ("MIB") issued an executive order ("MIB Order") directing the discontinuation of Pakistan-based content on OTT platforms, media streaming platforms and intermediaries. In a similar vein, the Indian government issued an executive order to X (formerly Twitter) to block over 8,000 accounts.
Legal Basis for Blocking Orders
The MIB Order advising the blocking of Pakistan-origin content cited the Code of Ethics under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 ("IT Rules") which mandates that all publishers of news and current-affairs material or curated online content to exercise rigorous discretion and restraint when publishing, transmitting, or featuring material that could affect India's sovereignty, integrity, or public security. The MIB Order further relied on Rule 3(1)(b) (vii) of the IT Rules, which requires intermediaries to make reasonable efforts to prevent their users from uploading, modifying, or disseminating content that, inter alia, threatens the unity, integrity, sovereignty, or public order of the State. Considering the same and citing heightened tensions between India and Pakistan and the recent terror attack, the MIB deemed an executive prohibition of Pakistan-origin content on OTT and streaming platforms necessary in the interest of national security.
With respect to the Government of India's directive to X (formerly Twitter) on blocking numerous accounts, X stated that the Ministry's executive order did not highlight any specific posts that contravened Indian law, nor did it furnish evidentiary support or legal justification for the blocking of the 8,000 accounts.
Read morehere.
RBI Introduces Digital Lending Directions, 2025
On May 08, 2025, the Reserve Bank of India ("RBI") released the Reserve Bank of India (Digital Lending) Directions, 2025 ("Directions"). The Directions seek to consolidate the digital lending framework and effectuate responsible lending, safeguard borrowers, enhance financial transparency, and uphold ethical standards in the digital lending space.
Key Features and New Additions
- Consolidated Framework: The Directions supersede and replace earlier directions issued by the RBI including the Guidelines on Digital Lending ("2022 Guidelines"), Guidelines on Default Loss Guarantee ("DLG Guidelines") and Loans Sourced by Banks and NBFCs over Digital Lending Platforms: Adherence to Fair Practices Code and Outsourcing Guidelines, 2020. The Directions ostensibly seek to create a consolidated framework for digital lending as opposed to a hitherto dispersed framework.
- Directory of Digital Lending Apps: By June 15,
2025, all Regulated Entities ("REs")
must report to the Centralised Information Management System Portal
("Portal") of the RBI, providing details
of all the Digital Lending App ("DLA")
deployed or joined by them, whether self-operated or operated by
the Lending Service Provider ("LSP"). In
this regard, the RE are required to, inter alia, certify
the following:
- DLAs have a link to the REs website containing, inter alia, the requisite details of the LSP, lender, and further information about the loan products;
- DLAs have appointed a grievance redressal officer, the details of which are prominently available on the DLA; and
- that the data collection and storage requirements are in compliance with the Directions.
- Data Processing: Previously, under the 2022 Guidelines, the RBI required for all lending data to be stored within India. However, the Directions now expressly permit the offshore processing of data, subject to the condition that such data must be deleted from foreign servers and brought back to India within 24 hours of processing.
- Due Diligence Obligations: Under the
Directions, REs must conduct rigorous due diligence prior to
engaging any LSP, assessing inter alia:
- technical capabilities;
- data privacy and practices and security systems;
- fairness in conduct with borrowers;
- historical conduct; and
- compliance with applicable regulations and statutes.
Furthermore, REs are required to periodically review the LSPs performance against their contractual obligations and take corrective action as and when required. Importantly, REs remain fully responsible for acts and omission by the LSP.
- Intimation of recovery agent details: In the case of a loan default, the details of the recovery agent authorised to approach the borrower (or change in thereof) are required to be intimated to the borrower, prior to the recovery agent establishing contact with such borrower.
Read more here.
European Commission Releases Preliminary Findings on Breach of Digital Services Act by Tik Tok
On May 15, 2025, the European Commission ("Commission") issued a press release recording its preliminary findings that TikTok Technology Limited's social media application "TikTok" failed to fulfil its obligations under Article 39 of the Digital Services Act ("DSA"). Importantly, Article 39 requires entities to maintain a publicly accessible repository of advertisements that includes key information, such as each advertisement's content and the demographic profile of the targeted user group, and to ensure that this repository is accompanied by a reliable, multi-criteria search functionality.
Background: TikTok's Designation as a VLOP and Ongoing DSA Investigation
In April 2023, TikTok was formally designated as a Very Large Online Platform ("VLOP") (i.e. platforms with more than 45 million users in the EU) under the DSA, as a consequence of which it was subjected to enhanced obligations concerning transparency and risk mitigation. Subsequently, on February 19, 2024, based on preliminary investigations conducted by the Commission and analysis of the risk assessment report sent by TikTok in September 2023, the Commission initiated formal proceedings to determine whether TikTok had contravened the DSA.
The Commission's inquiry focused on, inter alia:
- negative foreseeable effects of TikTok's algorithm leading to addictive algorithmic content spirals;
- measures to ensure minors' privacy, safety, and security; and
- provision of a searchable, reliable repository for advertisements.
Preliminary Findings of the Commission
Under Article 39 of the DSA, every VLOP that displays advertisements is required to compile and make publicly available a repository containing, inter alia, the following information:
- the content of the advertisement;
- the natural or legal person paying for the advertisement and on whose behalf, it was advertised; and
- the demographic of the user group targeted.
Importantly, such online repository must be accompanied by a search functionality that enables multi-criteria queries, thereby facilitating meaningful access to, and analysis of, the advertisements stored therein.
In this regard, the Commission in its preliminary findings, observed that the advertisement repository maintained by TikTok, falls short of the core requirements mandated under Article 39 as elaborated above. Moreover, TikTok's advertisement repository did not provide for a search mechanism capable of comprehensively searching through advertisements, thereby limiting the usefulness of the tool.
As a VLOP, TikTok is entitled under Article 79(1) of the DSA to be heard in response to the Commission's preliminary findings. If the Commission's preliminary findings are ultimately confirmed, TikTok Technology Limited may be subject to a fine of up to 6% of its total global annual turnover, in addition to being placed under an enhanced period of supervisory oversight to ensure compliance with the remedial measures imposed.
Read more here.
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