Google and the European Union’s GDPR: A Global Example of Policy Influence
In 2018, the European Union implemented one of the most ambitious and far-reaching privacy regulations in history—the General Data Protection Regulation (GDPR). While the regulation was designed to protect European citizens’ data from exploitation by companies, one of its key effects was the profound influence it had on major global tech giants like Google.
Google, which has vast access to personal data through its search engine, YouTube, and other services, was forced to dramatically alter its business practices to comply with GDPR. The regulation required companies to provide users with more control over their data, obtain explicit consent for its collection, and ensure better transparency regarding data processing. Google, the dominant player in the data economy, had to make significant changes to its user interface, revise its privacy policies, and implement more stringent data protection measures across Europe.
But this wasn’t merely about compliance. Google, one of the most influential tech companies globally, was actively involved in shaping the regulation from the outset. The company, along with other tech giants, lobbied the EU to ease some of the regulations, particularly around data storage and user consent. However, despite these lobbying efforts, the GDPR went into effect with robust protections, setting a global precedent for data privacy.
This regulatory shift didn’t just impact European users but reverberated worldwide, influencing how other countries—India, for example—began thinking about and drafting their own data protection laws. The GDPR highlighted the growing power of tech companies like Google, not only as market leaders but also as major stakeholders in the creation of public policy.
There are two sets of legislation applicable to an IPO process, the first being the legislation applicable before and during the IPO and the second being the legislation applicable after the IPO is concluded:
1. Companies Act, 2013 – Chapter III of the Act governs public issues and the listing process to be followed. It sets out the basic premise of going public for companies.
2. Securities Contracts (Regulation) Act, 1956
3. SEBI ICDR Regulations
4. SEBI (Merchant Bankers) Regulations, 1992
5. SEBI (Research Analyst) Regulations, 2014
6. SEBI (Bankers to an issue) Regulations, 1994
Legislation to be complied with after the IPO, i.e. post-listing:
7. Companies Act, 2013 – provisions relating to listed companies shall be additionally applicable.
8. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
9. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
10. SEBI (Prohibition of Insider Trading) Regulations, 2015
Facebook (Meta) and India’s Intermediary Guidelines: A Case of Domestic Policy Influence
Closer to home, in India, Facebook (now Meta) has had a direct hand in shaping public policy with its involvement in the creation of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These new rules were introduced by the Indian government in response to the rapidly growing influence of social media platforms like Facebook, WhatsApp, and Twitter, and the rise of fake news, hate speech, and misinformation.
India’s new regulations, aimed at ensuring greater accountability from social media platforms, require these companies to appoint a grievance officer, comply with a Code of Ethics for content moderation, and take steps to curb the spread of fake news. Platforms like Facebook were required to identify the “first originator” of any content flagged as problematic, a provision that raised privacy concerns for both users and the platforms themselves.
Meta, as one of the largest social media platforms in India, was at the center of the discussions and negotiations surrounding these new guidelines. The company was deeply involved in policy debates, actively engaging with the Indian government to discuss the implications of these rules on its operations. Meta argued that such stringent requirements might infringe upon user privacy and restrict freedom of expression. It also lobbied for more leniency, particularly on the rule that would require the platform to trace the origin of specific content.
Despite the lobbying efforts, the government pushed forward with the rules, which are now shaping the landscape of digital content regulation in India. This incident showcases how Facebook (Meta) is not only a player in the market but also a powerful influencer in shaping national policy. The company’s influence has been pivotal in molding the rules that govern how social media platforms operate in the country.
How Tech Giants Are Shaping Corporate Governance and Public Policy
These examples from Google and Meta show how tech giants are no longer just businesses focused on innovation and profit-making; they are now key players in the policy and regulatory landscapes, influencing how laws are created, reformed, and enforced. Through lobbying, compliance efforts, and active participation in policy formation, companies like Google, Meta, and Amazon are reshaping the frameworks within which both businesses and governments operate.
As these companies continue to expand and cement their positions in the global economy, their influence over public policy is becoming increasingly difficult to ignore. The line between corporate interests and public governance is blurring, and governments are finding themselves not only regulating these entities but also reacting to their lobbying and political power.
India’s Digital Data Policies
The Indian government has introduced a series of regulatory policies that directly impact tech giants operating in the country. The Digital Personal Data Protection Act (DPDPA) is one such example. This act is modeled after the European Union’s General Data Protection Regulation (GDPR) and is designed to regulate the collection, storage, and sharing of personal data by tech companies. The bill aims to hold companies like Google, Facebook, and Amazon accountable for how they handle user data and provide individuals with more control over their information.
The government’s recent push to promote “Atmanirbhar Bharat” (Self-reliant India) is also influencing tech policy. The idea behind this initiative is to reduce reliance on foreign companies and foster domestic alternatives. As a result, companies like Amazon and Google face growing pressure to comply with localization requirements and partner with Indian startups and tech businesses.
Global Policy Trends: Europe and the United States
Globally, governments have been taking various steps to regulate the power of tech giants. In the European Union, the GDPR has set a precedent for data privacy laws, which has influenced other countries, including India. The EU is also working on the Digital Markets Act (DMA) and Digital Services Act (DSA), which are aimed at regulating the behavior of dominant tech companies and ensuring fair competition.
In the United States, the debate over antitrust laws and tech monopolies has been intensifying. The U.S. government has pursued legal action against major tech firms like Google and Facebook to break up their monopolies and promote fair competition. These global regulatory trends are shaping how governments worldwide, including in India, approach tech policy.
Conclusion
The role of tech giants in shaping public policy in India is becoming more prominent with each passing year. Companies like Google, Facebook (Meta), and Amazon are not just market leaders; they are also powerful stakeholders influencing policy decisions in areas such as data privacy, competition law, and labor regulations. As these companies continue to grow in size and influence, their ability to shape policies will become increasingly important in determining how technology impacts society. For governments, the challenge lies in crafting policies that both encourage innovation and protect the public interest, ensuring that tech giants operate responsibly and contribute positively to societal development. As tech giants and governments navigate this new era of corporate governance, striking a balance between regulation and innovation will be key to ensuring that technology remains a force for good.
