Technology, Media and Telecommunications Industry Alerts

Whats the Buzz?

Zee and Sony merge to lead India’s second-largest entertainment network.

Recently, in a heavy merger deal, the two media giants: Zee Entertainment Enterprises and Sony Pictures Network India locked an agreement to form India’s second-largest entertainment network. The deal accepted Sony’s majority stake with 3.99% of the stakes to the Zee family (with an option to increase to 20% in the market). The said agreement boasts 75 TV channels, two video streaming services (ZEE5 and Sony LIV), two film studios (Zee Studios and Sony Pictures Films India), a digital content studio (Studio NXT), and programming libraries.

Thus, it can be safely presumed that the TMT business in India is taking the market by storm. All that is required by the business entities as well as the potential consumers is that they remain abreast with the latest compliance as directed by the concerned regulatory bodies.

How is TMT regulated in India?

The Telecom Regulatory Authority of India.

The main governing body responsible for regulating the TMT sector is the TRAI. TRAI came into being such an independent authority when the government of India released that with the incoming of private giants in the Indian technology sector, the same had to be regulated fairly. The major objectives/ functions of the TRAI Act 1997 are:

Some of the major re-commendatory, regulatory and tariff-setting functions of TRAI are to make recommendations on the need and timing for the introduction of a new service provider, on the terms and conditions of the license to a service provider, ensure compliance of terms and conditions of a license, effective management of spectrum, lay down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers to protect the interest of the consumers of telecommunication service, ensure effective compliance of Universal Service Obligations, notify the rates at which telecommunication services within India and outside India shall be provided under this Act etc.
The applicable sources of laws are; The Information Technology Act 2000, The TRAI Act 1947, The Cable TV Networks Act 1995, The Telegraph Act 1885 etc.

Contemporary Developments at a Glance

These are some of the many vital developments to be noted down:

1)The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Cryptocurrency is a matter of heated discussion in India right now. While the younger and more technologically adept youngsters are raging on legalising private cryptocurrencies in India, the government is trying to offer a middle ground through its 2021 Bill.

The objective of the Bill reads as to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.(Courtesy:http://loksabhadocs.nic.in/bull2mk/2021/23.11.21.pdf)

Hence it is certain that India is in no mood to let this virtual currency land into the private hands. Further, the Bill coins of something as official digital currency negates the basic understanding of a cryptocurrency being a decentralized form of money/ currency. Also, Priam faces the punishments prescribed in the Bill that seem not proportionate with the regular economic offences of the same kind. Though the Bill was set to be introduced in the winter session of December 2021, the same could not happen. All we can sit and do is speculate the market of crypts and the efficiency of blockchain technology in India supporting such crypts.

2) TRAI Recommendations on OTT and Cloud Services.

The TRAI Recommendations on OTT can be summarized as follows:

>  No regulatory interventions are required with respect of issues related to Privacy and security of OTT services at the moment.

> Also, there is no need for a comprehensive regulatory framework required presently for the OTT market and the same shall be monitored appropriately (IT Act 2000, CRPC 1973 and other applicable laws).

The TRAI Recommendations on Cloud Services can be summarized as follows:

> The Cloud Service Providers (CSP) under the TRAI recommendations have been brought under the radar of the TRAI for better consumer services.

> Also, the DoT may initiate the setting up of an industry body and require all CSPs to become members of the same. (The channel partners of CSP may not be required to seek membership if their principal bodies already have the membership).

> The scope of CSPs shall be initially limited to providers offering Infrastructure as a service Platform as a Service to India or to Indian customers.

3) The Information Technology Rules 2021.

In early 2021, the MEITY & MIB introduced Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (Intermediary Rules 2021) under Section 87 of the Information Technology Act, 2000 (IT Act). According to the Law minister Mr Ravi Shankar Prasad this move was more into self-regulation of the social & media platforms than any strict measures as to censorship.

The said guidelines emphasize on certain due diligence to be duly followed by a Social Media Intermediary (SMI) and a Significant Social Media Intermediary (SSMI). A detailed code of ethics is to be followed by the digital industry.

The SMI as a part of due diligence must abide by publishing of privacy policy, user agreements and not to publish any pornographic content, anything affecting the sovereignty & unity of India etc. It shall remove any objectionable content within 36 hours of being directed by the order of the Court or any relevant authority. It shall also agree to provide and give access to the government authority any information sought by it within 72 hours. Also, very importantly it shall publish the contact details of the Grievance Redress Officer who shall acknowledge the receipt of complaints and dispose them off within 15 days of such acknowledgement.

The SSMI as a part of due diligence must abide by appointing a Chief Nodal Officer who shall maintain compliance under the concerned Act as well as the appointment of Resident Grievance Officer who shall acknowledge and address any complaint filed against any app/ website. Also, the SSMI shall help enable in identification of the first origination of information thereby hinting at no end-to-end encryption for its users. It shall have to publish physical addresses in India for communication purposes and also maintain compliance reports (complaints received and action taken) monthly.

It is to be noted that these same Rules were imposed on the Digital News publishers too. The News Broadcasting Association (NBA) has opined that the said Rules are out rightly against their freedom of speech and expression and it excessively gives proportionate powers to the executives. NBA has stated that the Information Technology Rules, 2021, are ultra vires to the Information Technology Act, 2000 apart from being violation of Article 14 (equality before law) and 19(1)(g) (right to freedom to practice any profession, or to carry on any occupation, trade or business) of the Constitution. There has been an ongoing war wrt implementation of these rules on the news channels and the SC is yet to pronounce its views on it.

THE ASTREA LEGAL PREDICTIONS 2022

Astrea Legal expects that in 2022 the data shall be the new oil. India shall endeavor to promote the interests of millions of Indians by developing better laws centred towards creation of an Data Tank This data tank shall hopefully be protected from foreign attackers and require any confirmed foreign agency to first fulfil due diligence in acquiring non-personal data.

Though it might not be possible by 2022 to see a positive take to prevalence of private cryptocurrencies in India, fingers are crossed for what exactly would official digital currency bring to the economy. Hopefully, it should garner much interest in the general public and promise no inflation or reduction in its value over the years.

The corporate giants shall move towards more intelligible and sustainable making of smartphones and electronic gadgets that shall be safe for the environment. The mental health apps shall gain more ground given the overburdening stress and restrictions the human race is undergoing in the pandemic.
Also, the production and sale of Television sets might get impacted negatively since, now at least every 4th Indian has access to OTT platforms and smartphones.

It shall be interesting to observe judicial intervention on the question of how much executive control in the form of Grievance Redress and other compliance shall be acceptable in the media and technology.

This publication is provided for general information and does not constitute any legal opinion.This publication is protected by copyright. © 2022 Astrea Legal Associates LLP