Regulation

We must guard against the casual disregard of science

Trofim Lysenko’s misguided agricultural practices led to famines in the Soviet Union and China, killing millions. This is no different from the modern-day denial of climate science. We need to learn from the past and try not to ignore scientific evidence for political or economic reasons. Else we risk devastating global consequences.

A blueprint for an effective data protection authority

India’s Data Protection Authority (DPA) must adopt technology to manage the high volume of privacy violation complaints and data-breach notifications. The DPA needs experts in technology, law, and privacy to balance privacy protection with technological innovation, requiring members beyond the traditional pool of bureaucrats and retired judges.

A three-point plan to improve tech policy formulation

Regulating technology is challenging due to its rapid evolution, leading to a disjointed patchwork of rules. Governments often react to technology’s harmful impacts rather than proactively anticipating them. Regulatory entrepreneurship, where changing laws is part of the business strategy, complicates this further. To improve technology regulation, the government should focus on real objectives, adopt principle-based laws, and seek expertise from various fields. This approach would ensure more effective, adaptable, and comprehensive technology regulation.

Policy advocacy is really an exercise in compromise

Despite a 2014 initiative by the ministry of law and justice that mandated pre-legislative consultation, in most instances the process is largely superficial. We need a more genuine and constructive engagement from both the government and stakeholders, emphasizing compromise and understanding. The government should actively facilitate pre-legislative consultation, evaluate competing suggestions, and align decisions with democratic values to ensure more meaningful participation in policy-making.

Time to redo FDI in e-commerce in India

India’s restriction on foreign investment in retail, extended to e-commerce, led to complex structures to navigate the limitation. The government’s recent regulations, instead of simplifying the policy, have endorsed the marketplace model, potentially leading to ongoing convoluted practices that may hinder consumer benefits and business ease.

The Highway Ban

The Supreme Court of India’s ban on liquor sales along highways led to the closure of bars and pubs on Bengaluru’s MG Road and Brigade Road, mistakenly identified as part of NH-4 and NH-7. The excise department’s order, based on outdated map information, ignored the city’s changed highway network, reflecting a broader issue with government map coordination. The Supreme Court later clarified that the ban should not

Path Dependence

The QWERTY keyboard layout was designed to slow down typing to prevent mechanical jams. This design has persisted despite alternatives that could improve typing speeds. Path dependence like this is reflected in the legislative process in India, where outdated laws still govern modern technology. We need to break free from path dependence, especially in the context of enacting a new privacy law, to create regulations that are responsive to modern technology.

FOMO and the Law

Lawmaking, fraught with the challenge of foreseeing unintended consequences, often leads to statutes filled with broad, catch-all provisions. These residuary clauses, while providing regulatory flexibility, create uncertainty and potential for overreach. The Other Service Providers (OSPs) regulations in telecom exemplify this, with vague definitions extending regulatory reach to unintended sectors. Precise, purpose-built legislation is advocated over open-ended definitions to avoid such regulatory ambiguities.

Regulatory Sandbox

The Indian government’s approach to using imprecise language in law-making - particularly in technology regulation - can lead to unintended consequences. If we can use regulatory “sandboxes” to safely test new technologies to be tested within controlled environments it would foster innovation and create more precise and effective regulations.

Regtech Will Change the Way We Regulate

Since the 2008 financial crisis, increased regulatory measures have led to higher compliance costs for financial institutions. Many banks’ legacy systems are struggling with these demands. Emerging RegTech start-ups are addressing this by using modern cloud-based technologies to simplify compliance. This field promises to transform regulation through efficient data processing, real-time API-driven compliance, and a shift from prescriptive legislation to principle-based algorithms.