India's Digital Regulation Gap: What It Means for Consumers & Innovation
India's Digital Regulation Gap: Impact on Consumers

India currently operates without a specific law to govern digital services, a situation that became more pronounced after the government withdrew the draft Digital Competition Bill in August 2024. This regulatory vacuum raises critical questions about the future of fair competition, consumer choice, and innovation in the country's rapidly growing digital economy.

The High Stakes of Unchecked Digital Dominance

According to Mozilla, which has advocated for a competitive web for 25 years, a handful of powerful companies now dominate our online experiences. This concentration of power limits user options, stifles new competitors, and hampers innovation. The integration of large language models (LLMs) into core services is set to intensify this trend. Well-crafted competition regulation, however, can boost consumer choice, economic growth, and value by lowering barriers to entry and encouraging investment from both domestic and international players.

The positive impact of such regulation is not just theoretical. Mozilla points to the European Union's Digital Markets Act (DMA) as a real-world success. Following the DMA's enforcement, which mandated genuine browser choice for users, Mozilla saw its daily active users double within a single year. Inspired by this, the UK, Japan, and others have moved to create their own frameworks, recognizing that targeted intervention is needed to level the digital playing field for startups and improve citizen choice.

Dispelling the Myth: Regulation vs. Innovation

A common argument against regulation is that it could stifle innovation. Mozilla counters this, stating that the idea of 'regulation as the enemy of innovation' is often a public relations narrative pushed by incumbent giants who benefit from the status quo. The organization clarifies that it advocates for smart, well-designed regulation—not poorly conceived or heavy-handed laws.

Good regulation provides a clear framework and certainty for businesses, citizens, and the government. It should be efficient, proportionate so as not to overwhelm startups, and responsive. Crucially, it requires a knowledgeable regulator to oversee it. Drawing a parallel, Mozilla questions why the digital economy should be exempt from rules when sectors like finance and healthcare are regulated for public good.

Firefox's Strategy in a Market Dominated by Defaults

When asked about its strategy to increase Firefox's adoption in India amidst Google's market dominance, Mozilla highlighted its focus on providing superior user choice and control. In 2025, Firefox rolled out numerous updates aimed at making browsing faster, more secure, and more useful. Its real edge, it claims, is putting user agency first.

The challenge remains significant. Unlike some competitors, Firefox does not have its own operating system to pre-install its browser, meaning users must make an active choice to download it—a choice 200 million people globally have made. Barriers like hard-to-change defaults, platforms that override user settings, and maze-like configuration menus continue to hinder smaller browsers. Yet, Mozilla remains optimistic due to growing global momentum to address these anti-competitive practices.

AI, Choice, and India's Role on the Global Stage

Addressing Firefox's approach to AI, the company stated that control and choice remain central to its philosophy. As dominant firms merge browsers, search engines, and AI into closed ecosystems, Mozilla is thoughtfully developing an opt-in AI assistant feature called 'AI Window', set for release in the coming months. This dedicated space within Firefox will allow focused interaction with AI without disrupting the main browsing experience, ensuring user agency is built-in from the start.

Looking ahead to the global AI Summit India will host next year, Mozilla expressed hope for a broad conversation. It praised the Paris Summit's focus on openness across the AI stack as a path to transparency and hopes the Indian Summit will foster a robust debate on the role of well-crafted regulation in shaping a safe and innovative AI future.

The insights were shared by Himanshi Dhawan, a Senior Editor with The Times of India with 25 years of experience reporting on politics, social issues, and gender. An award-winning journalist, she has received the UNFPA-Population First Laadli award and the Edward Murrow Fellowship.