UPSC CURRENT AFFAIRS – 18 May 2024

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

Table of Contents:

GS Paper 2:

• Key Provisions of India’s Digital Competition Bill, 2024

Content for Mains Enrichment (CME)

• World Telecommunication and Information Society Day

Facts for Prelims (FFP)

• Nor’westers

• Supreme Court Orders in News

• De-recognition or De-Registration of Political parties

• Co-Lending Loans

• Mitogenome

• Plunging regions

• Lunar Polar Exploration Mission (LUPEX)

• AI in drug development

Key Provisions of India’s Digital Competition Bill, 2024

#### GS Paper 2

Syllabus: Government Policies and Interventions

Source: IE

Context: India’s proposed Digital Competition Bill, 2024, draws inspiration from European regulations to address concerns regarding big tech companies like Google, Facebook, and Amazon

What is Digital Competition?

Digital competition refers to the competitive landscape within the digital sector, encompassing industries such as technology, internet services, e-commerce, and digital platforms. It involves the rivalry among companies offering digital products, services, or platforms, as well as the dynamics of market entry, innovation, pricing, and consumer choice within these sectors.

What is Digital Competition Bill (DCB) 2024?

The Digital Competition Bill (DCB) is a proposed bill which aims to regulate Systemically Significant Digital Enterprises (SSDE) and their Associate Digital Enterprises (ADEs) to prevent Anti-Competitive Practices (ACPs). It draws inspiration from the Digital Markets Act (DMA) of the European Union, which was introduced to address ACPs of tech giants such as Google, Facebook, and Amazon. The Ministry of Corporate Affairs (MCA) is handling the draft.

Need for the Digital Competition Bill (DCB) arises from several factors:

• Ineffectiveness of Current Framework: The existing ex-post framework under the Competition Act, 2002, lacks the ability to promptly address anti-competitive behaviour by digital enterprises.

• Market dominance Concerns: The current framework may not adequately tackle the dominance of markets in favor of large digital enterprises, leading to their permanent dominance.

• Arbitrary Pricing:Big Tech’s influence on pricing rules in the digital space, leads to concerns about fairness and competition.

• Anti-Competitive Practices: Big tech giants have been observed engaging in practices such as data collection and self-preferencing (which can stifle competition and innovation) and Google’s tweaking of its Android ecosystem to favour itself.

• Ensuring Orderly Expansion: DCB aims to support the orderly expansion of the digital ecosystem by promoting fair competition and preventing monopolistic tendencies.

• Remove barriers for new players: The dominance of a few companies creates barriers for new entrants, limiting innovation within the sector.

Key provision of the DCB Bill:

Provisions | Description

Ex-Ante Regulation | The bill proposes a preventive (ex ante) approach instead of the current post-incident (ex post) regulation. It aims to anticipate and prevent potential anti-competitive practices. It allows the Competition Commission of India (CCI) to intervene preemptively

Core Digital Services (CDS) | The list of core digital services (susceptible to market concentration) has been mentioned under Schedule I of the bill.

It covers various digital services like search engines, social networks, video-sharing platforms, communication services, operating systems, web browsers, cloud services, advertising platforms, and online marketplaces.

SSDE (Systematically Significant Digital Enterprises) | The Bill proposes to designate certain enterprises as SSDEs. CCI designates SSDEs based on quantitative (turnover, market cap) and qualitative (user base) parameters

SSDEs are those enterprises that provide core digital services in India and have a significant presence and significant financial strength in the country.

Parameters to determine whether the enterprise may be designated as SSDE | To determine SSDE designation, the Bill proposes financial strength and spread tests.

Qualifying parameters include India turnover, global turnover, gross merchandise value, and market capitalization.

Additionally, a core digital service must have at least 1 crore end users or 10,000 business users. Entities falling short may still be designated based on their significant presence in a core digital service.

Obligations of SSDEs | SSDEs are barred from self-preferencing, anti-steering, and limiting third-party apps. Violations could lead to fines of up to 10% of their global turnover.

Coverage of Enterprises Outside India | CCI is empowered to inquire into non-compliant enterprises.

Associate Digital Enterprises (ADEs) | Entities benefiting from data shared by major tech groups. They are subject to the same obligations as SSDEs.

Issues with the Bill:

• Compliance Burden: Big tech firms argue that strict regulations may shift focus from innovation to compliance, citing the EU’s DMA increasing search time on Google by 4,000%.

• Broad Definitions: Concerns exist about overbroad criteria for designating significant platforms, with India’s law leaving decisions to the CCI’s discretion.

• Impact on Smaller Businesses: Changes and reduced data sharing could negatively affect smaller businesses reliant on tech giants’ services.

• Potential Arbitrary Decisions: CCI discretion could lead to arbitrary rulings, affecting startups and smaller firms.

Regulation of tech companies in other countries:

Country | Mechanism | Description

Europe | Digital Markets Act (DMA) and Digital Services Act (DSA) | The Digital Markets Act (DMA) aims to ban harmful business practices by large digital players, creating a fairer and more competitive economic space. The Digital Services Act (DSA) targets various online services, including websites, internet infrastructure services, and online platforms.

USA | Anti-trust legislation | The United States has adopted anti-trust legislation to address the dominance of Big Tech companies. These measures include giving states greater power in competition cases and increasing funding for federal regulators.

Australia | Competition watchdog recommendations | The competition watchdog in Australia has recommended tighter regulations for Facebook and Google to improve media competition.

Additionally, the Online Safety Act grants the power to force social media companies to delete posts constituting online bullying and imposes fines on companies and hosts involved in the alleged abuse.

The Standing Committee on Finance submitted its report on ‘Anti-Competitive Practices by Big Tech Companies’ in December 2022.

Key observations and recommendations include:

• Regulating Digital Markets: Evaluate competitive behaviour in digital markets before monopolization occurs, suggesting the identification of Systemically Important Digital Intermediaries (SIDIs) and yearly reporting to the Competition Commission of India (CCI).

• Digital Competition Act: Introduce legislation to ensure a fair digital ecosystem.

• Self-Preferencing: SIDIs must not favour their own services over competitors’ on their platforms.

• Data Usage: SIDIs should handle user data responsibly, avoiding merging data from core services without consent and restricting data access to third-party services.

• Revamping CCI: Strengthen the CCI with a specialized digital markets unit to monitor SIDIs and address anti-competitive behaviour.

• Third-Party Applications: SIDIs should allow and technically enable the use of third-party applications without transferring data to foreign governments.

• Bundling and Tying: SIDIs should not force users to subscribe to additional services to use their core platform.

• Anti-Steering: SIDIs should not restrict business users from steering customers to offers outside the platform.

To read more about regulatin of Big Tech firms: Click Here (Regulating Big Tech Companies in India and the world)

Conclusion

Collaborative efforts can help address the challenges posed by emerging technologies, promote ethical and responsible technology use, and ensure a globally inclusive and sustainable digital future.

Insta Link:

RBI to regulate bigtech and fintech

Mains Link:

There is growing support for regulating big tech companies such as Facebook and Google. Discuss the reasons. (15M)

Prelims Link:

With reference to ‘consumers’ rights/privileges under the provisions of law in India, which of the following statements is/are correct? (UPSC 2012)

• Consumers are empowered to take samples for food testing.

• When a consumer files a complaint in any consumer forum, no fee is required to be paid.

• In case of death of consumer, his/her legal heir can file a complaint in the consumer forum on his/her behalf.

Select the correct answer using the codes given below:

(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

Ans: C

World Telecommunication and Information Society Day

#### Content for Mains Enrichment (CME)

Source: PIB

Context: India Celebrates ‘Telecom Diplomacy’ on World Telecommunication and Information Society Day

World Telecommunication and Information Society Day is an international day proclaimed in November 2006 by the International Telecommunication Union Plenipotentiary Conference in Antalya, Turkey, to be celebrated annually on 17 May

What is Telecom Diplomacy?

Telecom Diplomacy is the strategic effort by a country to use its telecommunications industry to attract business ventures, form international partnerships, and secure a leading role in the global telecommunications landscape.

Key initiatives by India include:

• Strategic Partnerships: Collaboration with countries and companies, exemplified by the ‘US-India OpenRadio Access (ORAN) Network Acceleration Roadmap’.

• R&D and Innovation: Exploring collaborations to advance R&D, innovation, and the startup ecosystem in Quantum Communications.

• India Mobile Congress (IMC): Efforts to elevate IMC to a global level like the Mobile World Congress by 2025.

• Exported telecom equipment worth Rs 25200 crores last year.

• Secured Indian interests in international forums and future 5G deployments.

• Hosting the World Telecommunication Standardization Assembly (WTSA) for the first time in India.

About the International Telecommunication Union (ITU):

It is the United Nations specialized agency for information and communication technologies (ICTs). Founded in 1865, it is the oldest of the UN’s 15 specialized agencies. ITU allocates global radio spectrum and satellite orbits, develops technical standards for network interconnectivity, and aims to improve ICT access for underserved communities. Based in Geneva, Switzerland, ITU is part of the UN Development Group and operates 12 regional offices. It functions as an intergovernmental public-private partnership with 193 member states and around 800 sector members. India, a member since 1952, was re-elected to the ITU Council for the 2019-2022 term.

Nor’westers

#### Facts for Prelims (FFP)

Source: IE

Context: India is establishing its first research testbed to study severe thunderstorms known as Nor’westers, primarily affecting the eastern and northeastern regions.

• It is a collaboration between the India Meteorological Department (IMD), the Indian Institute of Tropical Meteorology (IITM), Pune, and the National Centre for Medium-Range Weather Forecasting (NCMRWF), Delhi.

• The testbed aims to improve the accuracy and lead time of thunderstorm predictions and warnings, which currently have a three-hour lead time.

About Nor’westers are severe thunderstorms that occur during the pre-monsoon season (March to May) in Bangladesh and the Indian states of Bihar, Jharkhand, Odisha, Tripura, Assam, and West Bengal. They are also known as Kalbaisakhis in India and bordoisilas in Assam.

Formation: The warm, moist, southerly low-level flow from the Bay of Bengal and a cool, dry westerly or NW upper-level flow existing over the region gives rise to a favourable synoptic setting for the formation of Nor’westers.

Supreme Court Orders in News

#### Facts for Prelims (FFP)

Source: TH, TH

SC orders | Descriptions

SC limits ED’s power to arrest PMLA accused | Background of the case: The judgment stemmed from Tarsem Lal’s appeal against the ED after being denied anticipatory bail by the Punjab and Haryana High Court. It raised questions on whether an accused appearing in a special court could seek bail under CrPC provisions

SC decisions: Enhancement of Right to Personal Liberty: Individuals summoned by a special court under PMLA are not considered in custody and don’t need to apply for bail under PMLA’s strict conditions

Limitation on ED’s Powers to Arrest: ED must apply separately for custody after a special court acknowledges a case, providing specific reasons for custodial interrogation.

Additional Relief for Accused: An accused, who appears in a special court pursuant to its summons, could be exempted from personal appearance in the future. However, if an accused does not appear after a summons is served, the special court could issue a bailable warrant followed by a non-bailable one.

About Prevention of Money Laundering Act (PMLA), 2002: Enacted in January 2003, the PMLA aims to prevent and control money laundering, confiscate laundered property, and address related issues in India. The Act has been amended multiple times, most recently by the Finance Acts of 2015, 2018, and 2019.

Section 3 defines money laundering as engaging in activities with proceeds of crime.

Section 45 of the PMLA imposes stringent bail conditions, requiring the accused to prove innocence and assure no further offences while on bail, posing significant challenges for bail.

SC order on Right to Property | The Supreme Court ruled that compulsory acquisition of property without proper procedures and fair compensation is unconstitutional, affirming the right to private property as a constitutional and human right.

SC stated that Article 300A has been characterised both as a constitutional and also a human right. Article 300A states that “no person shall be deprived of his property save by authority of law”

The court stated that procedural justice is a cornerstone of Article 300A when the acquisition of private property by the State is for a public purpose and on the payment of compensation.

Seven basic rights: The court laid down seven basic procedural rights of private citizens which constitute the “real content of the right to property under Article 300A” that the state should respect before depriving them of their private property. They include:

1.Right to notice or the duty of the state to inform the person that it intends to acquire his property
2.Right of the citizen to be heard or the duty of the state to hear the objections to the acquisition
3.Right of the citizen to make a reasoned decision or the duty of the state to inform the person of its decision to acquire property
4.Duty of the state to demonstrate that the acquisition is exclusively for public purpose
5.Right to fair compensation of the citizen
6.Duty of the state to conduct the process of acquisition efficiently and within prescribed timelines
7.Right of conclusion i.e. the conclusion of the acquisition proceedings leading to the vesting of fair compensation

Right to Property in Indian Constitution: Initially considered a fundamental right protected under Article 31 and Article 19(1)(f) of the Constitution, this status was altered (44th Amendment Act of 1978) as both articles were deleted and replaced with a single provision, Article 300A, housed in Part XII. This amendment redefined the legal status of the right to property, shifting it from a fundamental to a constitutional right.

Enhancement of Right to Personal Liberty:

The Act has been amended multiple times, most recently by the Finance Acts of 2015, 2018, and 2019.

Article 300A states that *“no person shall be deprived of his property save by authority of law”*

They include:

De-recognition or De-Registration of Political parties

#### Facts for Prelims (FFP)

Source: TH

Context: ECI lacks explicit powers to de-register parties for non-participation in elections. The Supreme Court has ruled that de-registration can only occur under exceptional circumstances.

Derecognition of Political Parties | Definition: Withdrawal of recognition by ECI, relegating parties to registered-unrecognized status.

ECI’s Power: Derecognition for violating constitutional provisions or the Representation of the People Act, 1951.

Grounds for National Party Derecognition

Failure to secure 6% of total votes in LS/ State LA or 4 MPs in LS elections

Failure to secure at least 2% of seats in LS from 3 states

Failure to secure 8% of total valid votes in state elections or LS elections from the state

Failure to submit audited accounts or hold organizational elections on time

Deregistration of Political Parties | Definition: Cancellation of party registration; ECI lacks authority to deregister parties

Effects: Deregistered parties cannot contest elections.

Grounds for Deregistration:

Registration was obtained by fraud.

Declaration of illegality by Central Government.

Amendment of internal constitution conflicting with the Indian Constitution.

As per the ECI, there are 2,790 active registered political parties in India (as of May 2024). Section 29A of the Representation of the People Act, 1951 (RP Act) sets out the criteria for political party registration with the Election Commission of India (ECI). However, the RPA lacks provisions for deregistration. Despite this, the ECI has consistently advocated for authority over both registration and deregistration processes for political parties.

Co-Lending Loans

#### Facts for Prelims (FFP)

Source: BS

Context: The Finance Ministry has tasked SBI with forming a committee to address co-lending issues, aiming to boost credit flow.

What is Co-lending?

Co-lending, also known as co-origination, is a collaborative lending arrangement involving multiple lenders to extend loans to borrowers.

E.g., a business needs a large sum of money for a business project. Instead of relying solely on one bank, two financial institutions—let’s say a bank and a non-banking finance company (NBFC)—join forces to provide the loan. This collaborative approach helps to spread the risk between the two lenders while increasing the overall amount of money available for lending. So, co-lending allows borrowers to access larger loans while diversifying risk for the lenders.

As per RBI, banks and NBFCs can co-lend loans to priority sectors, with a minimum 20% credit risk on NBFCs, and the rest on banks. Banks are not allowed to enter into a co-lending arrangement with an NBFC belonging to the promoter Group.

Mitogenome

#### Facts for Prelims (FFP)

Source: DTE

Context: A recent study has traced the ancestry of South African leopards to an ice age, revealing their origins from two unique clades in southern and central Africa.

• This research involved analysing the mitogenomes—DNA found outside the cell nucleus and inherited maternally.

• These mitogenomes provide a reliable record of genetic mutations over time, allowing scientists to track the evolution and migration of leopards.

Mitogenomes, short for mitochondrial genomes, are DNA molecules found outside the nucleus of a cell, within the mitochondria.

Mitochondria are often referred to as the powerhouses of the cell because they generate the cell’s energy.

Plunging regions

#### Facts for Prelims (FFP)

Source: TOI

Context: Researchers from Oxford University have provided the first observational proof of “plunging regions” around black holes, confirming a key prediction of Einstein’s theory of gravity.

• The study demonstrated that there are areas near black holes where matter ceases to orbit and plunges directly into the black hole, experiencing some of the strongest gravitational forces in the galaxy.

• It confirms Einstein’s theory, which states that particles close to a black hole cannot maintain circular orbits and instead rapidly fall inwards at nearly the speed of light.

Lunar Polar Exploration Mission (LUPEX)

#### Facts for Prelims (FFP)

Source: The Print

Context: The India-Japan joint moon mission, the Lunar Polar Exploration Mission (LUPEX), is expected to launch in a few years.

• This collaboration between the Indian Space Research Organisation (ISRO) and the Japan Aerospace Exploration Agency (JAXA) aims to explore the lunar surface and search for subsurface water.

• ISRO is developing the lander, while JAXA is responsible for the rover and launch vehicle.

• The mission will also carry instruments from NASA and the European Space Agency (ESA), enhancing its scientific potential.

AI in drug development

#### Facts for Prelims (FFP)

Source: TH

Context: AI has significantly enhanced the efficiency and speed of drug development, a traditionally costly and time-consuming process.

AI Tools in Drug Development:

AlphaFold 3 and RoseTTAFold All-Atom:

• Developers: AlphaFold is developed by DeepMind, a Google company, and RoseTTAFold by the University of Washington.

• Functionality: These tools use deep neural networks to predict the three-dimensional structures of proteins and their interactions with drugs. They provide a major leap in predicting not just static protein structures but also dynamic interactions with various biological molecules, including DNA, RNA, and small molecules.

• Performance: In tests, AlphaFold 3 accurately predicted drug interactions 76% of the time, outperforming RoseTTAFold All-Atom at 40%.