The Indian government is considering changes to the legal framework that grants internet companies immunity from prosecution regarding user-generated content on their sites, including social media platforms. A draft of the Digital India Bill reveals that the current default exemption, as outlined in Section 79 of the Information Technology (IT) Act, may soon become a 'case-to-case basis' arrangement.

Government officials argue that platforms that influence content should not automatically enjoy legal immunity. This proposed change is anticipated to face resistance from the internet industry, potentially resulting in heightened content censorship and prompting smaller companies to invest in advanced content monitoring technologies and specialized teams.

Why does it matter?

This change, altering a long-standing understanding since 2004, will reshape the environment in which big tech companies operate in India. As noted by Rohit Kumar, a founding partner at the tech policy firm The Quantum Hub (TQH), companies may grow excessively cautious and potentially reduce or cease their services on platforms where problematic third-party content is a concern. However, with India's consumer market poised to become the world's third-largest by 2027, the pressure intensifies on big tech companies to adapt to the new regulation.