The IAMAI-Kantar ICUBE 2020 report released by the Internet and Mobile Association of India predicted that the number of internet users in the country would grow to 900 million by 2025. Amidst the anticipation of this rapid growth, concerns regarding misinformation, lack of transparency and misuse of technologies continued to plague the existing legal framework. Taking note of the increasing online activity, the Government of India notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules in February 2021.
Today, the rules have been embroiled in legal disputes due to the alleged violation of fundamental rights, the unconstitutionality of the tracking and disclosure requirements and an excessive overreach that is beyond the scope and ambit of its parent Act. This, however, is no bar to its applicability and all intermediaries, social media intermediaries and significant social media intermediaries will still be required to abide by the comprehensive due-diligence requirements laid down under the rules.
This includes supervising and regulating content, mandatory data retention, assisting law-enforcement agencies, abiding by takedown requirements and maintaining a grievance redressal mechanism to name a few. For the digital news media and OTT platform intermediaries, additional compliance in terms of an extensive Code of Conduct, arduous takedown requirements and a three-tier grievance mechanism has been set out to regulate such content within the governments ambit.
Therefore, any entity with an online presence like e-commerce websites, social media platforms, online marketplaces, online-auction sites, blogging websites or one that facilities the use of the internet like network services providers, search engines, web-hosting service providers, cyber cafes and the like shall be required to comply by the intermediary rules.
The digital economy is expected to witness exponential growth in the upcoming years and will continue to be under the constant scrutiny and regulation of the Government. Accordingly, intermediaries ought to comply with the regulations or risk losing out on the safe harbour protection provided under Section 79 of the Information Technology Act, 2000.