Why Google, Amazon and Meta are at the centre of India's new trade problem

Google, Amazon, and Meta have moved to the centre of India's most complex new trade dispute, as the United States government increasingly treats Indian digital regulations as non-tariff barriers that must be addressed in any bilateral trade agreement, according to a report by Outlook Business.

At issue are a range of Indian policies — including data localisation requirements, the proposed digital services framework, and competition rulings against Big Tech platforms — that Washington argues disadvantage American technology companies operating in India. US trade negotiators have reportedly pressed New Delhi to provide clearer market access and more predictable regulatory treatment for these firms as a condition of any deal.

For India, the tension is acute. New Delhi has been building a regulatory architecture designed to give it greater control over data and digital markets, including through the Digital Personal Data Protection Act and the scrutiny of platform dominance by the Competition Commission of India. Backing down on these frameworks to appease US trade demands would be politically difficult and could set a problematic precedent.

The standoff matters far beyond the tech sector. With a broader India-US trade deal now described as close to finalisation, how both sides resolve the Big Tech question could determine whether an agreement is struck — and on what terms. For Indian consumers and businesses that rely daily on these platforms, the regulatory outcome will shape everything from app store fees to data privacy rights.