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Government Revises IT Rules Amendments Amid Industry Concerns

The Ministry of Electronics and IT (MeitY) is considering revising the draft IT Rules amendments to address concerns raised by stakeholders. According to sources, the ministry may relax compliance requirements for intermediaries under Rule 14 and reissue past advisories with clearer scope. The deadline for consultation has also been extended to April 14.

Industry stakeholders have expressed concerns that the proposed changes could blur the line between platforms and content creators, expanding executive powers through binding advisories. Major social media companies have raised concerns around the treatment of advisories, which the draft proposes to make part of mandatory due diligence. They argue that many advisories are reiterative in nature and should not automatically trigger compliance obligations tied to safe harbour protections.

MeitY is examining feedback on Rule 14, particularly around the role of intermediaries within the oversight framework. The ministry held two meetings on April 7, one with industry and industry bodies, and the other with civil society organisations. Attendees included social media companies such as Meta, Google, YouTube, Snapchat, and Sharechat, as well as industry bodies such as IAMAI, NASSCOM, and the Broadband India Forum.

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Comparison of Key Provisions

ProvisionCurrent StatusProposed Change
Intermediaries' roleNeutral platformsDirectly accountable entities
Advisory bindingNon-bindingMandatory due diligence
Safe harbour protectionsSeparate from advisoriesTied to advisory compliance

The government's intent is not to expand liability, but rather to clarify the scope of advisories. Officials have indicated that the language may need to be tightened, particularly around the role of intermediaries and the division of regulatory oversight between MeitY and the Ministry of Information and Broadcasting (MIB).

The MIB's role in news content has also been a key theme in consultations. Government officials have stated that news and current affairs content falls within the MIB's domain, but stakeholders have flagged the lack of clear definitions for terms such as "news" and "current affairs." This ambiguity could lead to overbroad enforcement, raising questions about the potential FDI implications if platforms are seen as taking on publisher-like responsibilities.

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The proposal to make advisories binding has drawn particular scrutiny. Under the draft, compliance with government-issued communications, including advisories and guidelines, would be tied to safe harbour protections under Section 79 of the IT Act. Officials have explained that these provisions were brought in to ensure that advisories are complied with in full extent. The draft amendments are currently under consultation, with further rounds of stakeholder engagement.

Investor Takeaway

The government may ease intermediary obligations under Rule 14, potentially benefiting social media companies.

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