FACEBOOK & JIO PARTNERSHIP: THREAT TO PRIVACY? By Muskan Jain

India gets the highest Foreign Direct Investment in its technology sector as the founder of Facebook, the internet entrepreneur Mark Zuckerberg now holds about 9.99 per cent stake in JIO’s equity! And thus, has secured his seat at the Reliance JIO board.

The investment by Mr Mark is one of the largest investments made for the stake of a minority by a tech firm. The 43,574 crores of investment are not only about the money that Reliance digital will receive but also about how there might be an acceleration in Reliance new retail venture ‘JIOMart’.

As Facebook already owns WhatsApp and Instagram, JIO on this list would be quite interesting as well as threatening. By this investment, the entrepreneurs aim towards improving the local Kirana shops and make them digital-friendly.

  But is this digital-friendly step safe or this a surveillance Capitalism threat?

The ‘data elephants’ of the industry- Facebook and Reliance have huge dominance over the market. Facebook was alleged to use user data and now after its collaboration with Jio, there is a huge possibility of data manipulation over various social platforms which might lead to misuse of user data and other possible threats such as:

Blow to Net Neutrality- there is a field for everyone to play. But this partnership will have a monopolizing effect over data and will disturb the entire e-commerce network. Eventually, net neutrality will suffer a serious blow.

Payment Threats- WhatsApp has launched a payment feature which is alleged to cause disruption in digital payments. Since WhatsApp is interconnected with various other social media platforms, there is a huge probability that users’ confidential information, like a/c number, pin etc, might be in threat.

Lack of Competitiveness- the Competition Commission of India (CCI) scrutinizes the Acquisitions & Mergers, checks if there is a concentration of power within the market and takes suo-moto action to get over the cartelization. But the issues related to data are hard to identify and if identified becomes difficult to prove as, section 4 of CCI act talks only about ‘imposition of discriminatory practices, restricting the production of goods or provision of any services.’ In the case Taj Pharmaceuticals Ltd. v. Facebook and others 2015, the informant asserted the dominant position of Google and WhatsApp, but the ruling was refused as the assertion does not fall under the elements of section 4.

Also, the CCI is not equipped with the power to deal with cases related to user privacy, and digital markets and therefore various Tele companies are raising their concerns to Telecom Regulatory Authority of India (TRAI). The JIO- Facebook Partnership might push out several businesses.

  What can be the possible solutions?

In Matrimony.com Ltd v. Google 2012, the issue of ‘Big Data’ was recognised by CCI,  where the user data like device information, IP address etc is generated which can be used for malicious purposes. CCI might not be a data protection authority but are not oblivious to such rights.

It has become necessary to make codified laws related to the protection of user data like the data Protection bill, 2018. Clause 25 of this bill asks the companies to report in case they hold user data or Big Data. Section 43A of IT Act states that if any corporate body holds sensitive data of a user, it would be liable to pay damages to such users.

Laws can be interlinked so that companies will think twice before getting themselves near the private data of individuals, and thus protect the individuals from any harm. It is high time when making such laws has become crucial so that the data integrity can be maintained.

As the world is moving towards digitalization and the Prime Minister of India has a goal to make India digital. Digital desires an ‘ease in living’ and ease of doing business’ for each and every individual, it has also become important to bring laws and guard the individuals by making sure that their data is protected. Absence of such laws gives undue power to the companies and it becomes difficult to obstruct them.

If proper laws are enacted and the user data is in assured protection then this partnership between  Facebook from the United States of America and Reliance JIO of India will prove to be huge and  binding, where both the partners will get benefits in a great proportion. It will furthermore help India to develop digitally and will also bring new economic and financial opportunities. India will soon be much better than it is now, in terms of technology and growth, but only when the right steps are taken at the right time.