CUTS Warns Against Ex-Ante Cloud Service Regulations

CUTS International, a public policy think tank, has advised the Indian government against imposing strict ex-ante regulations on cloud services under the proposed Digital Competition Bill (DCB).

They believe the current competition law is enough to handle issues like vendor lock-in and data leveraging.

The cloud services market in India is expected to grow from $37 billion in 2025 to $267 billion by 2034.

CUTS argues that too much regulation could slow down innovation, make it harder for businesses to compete globally, and scare off investments.

They suggest learning from the UK's softer approach, where companies like Amazon Web Services and Microsoft Azure have made voluntary commitments to improve market conditions.

The government, however, sees regulation as necessary to protect smaller businesses from larger, dominant players.