#FactCheck -AI-Generated Image Falsely Claims Mukesh and Nita Ambani Gifted Luxury Car to Suryakumar Yadav

Introduction

The Telecom Regulatory Authority of India (TRAI) issued a consultation paper titled “Encouraging Innovative Technologies, Services, Use Cases, and Business Models through Regulatory Sandbox in Digital Communication Sector. The paper presents a draft sandbox structure for live testing of new digital communication products or services in a regulated environment. TRAI seeks comments from stakeholders on several parts of the framework.

What is digital communication?

Digital communication is the use of internet tools such as email, social media messaging, and texting to communicate with other people or a specific audience. Even something as easy as viewing the content on this webpage qualifies as digital communication.

Aim of Paper

• Frameworks are intended to support regulators’ desire for innovation while also ensuring economic resilience and consumer protection. Considering this, the Department of Telecom (DoT) asked TRAI to offer recommendations on a regulatory sandbox framework. TRAI approaches the issue with the goal of encouraging creativity and hastening the adoption of cutting-edge digital communications technologies.
• Artificial intelligence, the Internet of Things, edge computing, and other emerging technologies are revolutionizing how we connect, communicate, and access information, driving the digital communication sector to rapidly expand. To keep up with this dynamic environment, an enabling environment for the development and deployment of novel technologies, services, use cases, and business models is required.
• The regulatory sandbox concept is becoming increasingly popular around the world as a means of encouraging innovation in a range of industries. A regulatory sandbox is a regulated environment in which businesses and innovators can test their concepts, commodities, and services while operating under changing restrictions.
• Regulatory Sandbox will benefit the telecom startup ecosystem by providing access to a real-time network environment and other data, allowing them to evaluate the reliability of new applications before releasing them to the market. Regulatory Sandbox also attempts to stimulate cross-sectoral collaboration for carrying out such testing by engaging the assistance of other ministries and departments in order to give the starting company with a single window for acquiring all clearances.

What is regulatory sandbox?

• A regulatory sandbox is a controlled regulatory environment in which new products or services are tested in real-time.
• It serves as a “safe space” for businesses because authorities may or may not allow certain relaxations for the sole purpose of testing.
• The sandbox enables the regulator, innovators, financial service providers, and clients to perform field testing in order to gather evidence on the benefits and hazards of new financial innovations, while closely monitoring and mitigating their risks.

What are the advantages of having a regulatory sandbox?

• Firstly, regulators obtain first-hand empirical evidence on the benefits and risks of emerging technologies and their implications, allowing them to form an informed opinion on the regulatory changes or new regulations that may be required to support useful innovation while mitigating the associated risks.
• Second, sandbox customers can evaluate the viability of a product without the need for a wider and more expensive roll-out. If the product appears to have a high chance of success, it may be authorized and delivered to a wider market more quickly.

Digital communication sector and Regulatory Sandbox

• Many countries’ regulatory organizations have built sandbox settings for telecom tech innovation.
• These frameworks are intended to encourage regulators’ desire for innovation while also promoting economic resilience and consumer protection.
• In this context, the Department of Telecom (DoT) had asked TRAI to give recommendations on a regulatory sandbox framework.
• Written comments on the drafting framework will be received until July 17, 2023, and counter-comments will be taken until August 1, 2023. The Authority’s goal in the digital communication industry is to foster creativity and expedite the use of emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), and edge computing. These technologies are changing the way individuals connect, engage, and access information, causing rapid changes in the industry.

Conclusion

According to TRAI, these technologies are changing how individuals connect, engage, and obtain information, resulting in significant changes in the sector.

The regulatory sandbox also wants to stimulate cross-sectoral collaboration for carrying out such testing by engaging the assistance of other ministries and departments in order to give the starting company with a single window for acquiring all clearances. The consultation paper covers some of the worldwide regulatory sandbox frameworks in use in the digital communication industry, as well as some of the frameworks in use inside the country in other sectors.

Data localisation refers to restrictions in the data flow by limiting the physical storage and processing of data within a given jurisdiction’s boundaries.  

An obvious benefit contributing to the importance of data localisation is the privacy benefits it offers. In addition to this, data localisation also has the potential to safeguard sensitive data and decrease the probability of cyber-attacks. In India, data localisation has become a key issue in the last decade due to the increase in the discourse for data privacy. 

The Legal Framework in India

India passed the Digital Personal Data Protection Act of 2023 which directs the data fiduciaries (collectors and processors of digital personal data) to store the data of Indian citizens within India. This push for data localisation aligns with India’s position to enhance privacy, national security and regulatory control. It further requires data fiduciaries to adhere to the principles of data minimisation, purposeful limitation and consent of the data principles. Further, Section 17 of the Act prohibits the transfer of sensitive personal data to foreign jurisdictions unless they meet satisfactory privacy protection standards. 

The Reserve Bank of India, via a circular for Payments Data Regulation in 2018, has mandated that all payment data be stored in India, though it can be processed abroad. It requires the telecom sector to ensure local storage and local processing of subscriber information. It further prohibits the transferring of subscribers’ account information overseas.

MeitY’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, emphasise data localisation, specifically when it involves government or critical data. The main idea behind this is that data related to Indian citizens or government activities should remain accessible to Indian law enforcement agencies and is not subject to external jurisdiction.

Common Misinformation about Data Localisation and its Impact

Misconceptions fuel misinformation and influence public perception and policy debates. A common misconception is that all data must be stored in India. It should be noted that non-critical and non-sensitive data are not subject to localisation, and can be cleared for cross-border transfers under specific circumstances.

Another misconception is that data localisation alone ensures complete security. A robust cybersecurity approach, infrastructure and capabilities are what guarantee security and this holds true regardless of the location of where the data is stored. 

The notion that small businesses and startups will suffer the most is untrue. While data localisation policies may lead to increased costs, they foster innovation in the domestic infrastructure and services. This potentially fuels development and innovation in these small businesses and startups. Claims that data localisation will stifle global business are unfounded. 

Proper regulations for data transfers can help balance data flows, enabling international trade while ensuring data sovereignty.

Real Impact of Data Localisation

Data localisation impacts several domains and has both positive and negative outcomes.

• It can be a driver for investment in local data centres and infrastructure, thereby inducing employment generation and boosting the domestic economy. And in contrast, the compliance costs may rise especially for MNCs that need to maintain multiple data storage systems. 
• It can expedite the growth of local technology ecosystems while encouraging innovation in cloud computing and data storage solutions. On the other hand, small businesses might face struggles to afford the required infrastructure updates and upgrades.
• Law enforcement agencies will be able to gain access to data more swiftly while avoiding lengthy processes such as the Mutual Legal Assistance Treaties (MLATs). However, it should be noted that storing data locally does not automatically ensure that they are immune from attacks and breaches.
• A balance between sovereignty and global partnerships is a challenge that emerges with data localisation. International Trade Relationships are vulnerable to data localisations where countries favour a free data flow. This can hamper foreign collaborations with companies that rely on global data systems.

CyberPeace Outlook

It is important to clear misinformation about data localisation, some strategies that can be undertaken are:

• Launching public awareness campaigns to educate the stakeholders about the real requirements and the benefits of data localisation. Misinformation about data restrictions and security guarantees should be tackled fairly quickly. 
• A balanced approach that promotes local economic development while at the same time allowing for the necessary cross-border data flows and creating a flexible and friendly business environment is important.
• India should work on international frameworks to streamline the process of data-sharing with other nations. This would protect national interests while making global cooperation easier.

Conclusion

Data localisation in India presents a valuable opportunity to enhance privacy, bolster national security, and stimulate economic growth through local infrastructure investment. Yet, addressing common misconceptions is crucial; the belief that all data must be stored domestically or that localisation alone ensures security is misleading. 

It’s vital to pair local data storage with robust cybersecurity measures and foster international cooperation. Supporting small businesses, which may face challenges due to localisation requirements, is equally important. By addressing misinformation, promoting flexible regulations, and working towards global data-sharing frameworks, India can effectively manage the complexities of data localisation, safeguarding national interests while encouraging innovation and economic development. 

References

• https://www.thehindu.com/sci-tech/technology/are-data-localisation-requirements-necessary-and-proportionate/article66131957.ece 
• https://carnegieendowment.org/research/2021/04/how-would-data-localization-benefit-india?lang=en
• https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=2995
• https://www.meity.gov.in/writereaddata/files/Information%20Technology%20%28Intermediary%20Guidelines%20and%20Digital%20Media%20Ethics%20Code%29%20Rules%2C%202021%20%28updated%2006.04.2023%29-.pdf 

The Delhi High Court vide order dated 21st November 2024 directed the Centre to nominate members for a committee constituted to examine the issue of deepfakes. The court was informed by the Union Ministry of Electronics and Information Technology (MeitY) that a committee had been formed on 20 November 2024 on deepfake matters. The Delhi High Court passed an order while hearing two writ petitions against the non-regulation of deepfake technology in the country and the threat of its potential misuse. The Centre submitted that it was actively taking measures to address and mitigate the issues related to deepfake technology. The court directed the central government to nominate the members within a week. 

The court further stated that the committee shall examine and take into consideration the suggestions filed by the petitioners and consider the regulations as well as statutory frameworks in foreign countries like the European Union. The court has directed the committee to invite the experiences and suggestions of stakeholders such as intermediary platforms, telecom service providers, victims of deepfakes, and websites which provide and deploy deepfakes. The counsel for the petitioners stated that delay in the creation, detection and removal of deepfakes is causing immense hardship to the public at large. Further, the court has directed the said committee to submit its report, as expeditiously as possible, preferably within three months. The matter is further listed on 24th March 2025.

CyberPeace Outlook 

Through the issue of misuse of deepfakes by bad actors, it has become increasingly difficult for users to differentiate between genuine and altered content created by deepfakes. This increasing misuse has led to a rise in cyber crimes and poses dangers to users' privacy. Bad actors use any number of random pictures or images collected from the internet to create such non-consensual deepfake content. Such deepfake videos further pose risks of misinformation and fake news campaigns with the potential to sway elections, cause confusion and mistrust in authorities, and more.

The conceivable legislation governing the deepfake is the need of the hour. It is important to foster regulated, ethical and responsible consumption of technology. The comprehensive legislation governing the issue can help ensure technology can be used in a better manner.  The dedicated deepfake regulation and deploying ethical practices through a coordinated approach by concerned stakeholders can effectively manage the problems presented by the misuse of deepfake technology. Legal frameworks in this regard need to be equipped to handle the challenges posed by deepfake and AI. Accountability in AI is also a complex issue that requires comprehensive legal reforms. The government should draft policies and regulations that balance innovation and regulation. Through a multifaceted approach and comprehensive regulatory landscape, we can mitigate the risks posed by deepfakes and safeguard privacy, trust, and security in the digital age.

References

• https://www.devdiscourse.com/article/law-order/3168452-delhi-high-court-calls-for-action-on-deepfake-regulation
• https://images.assettype.com/barandbench/2024-11-23/w63zribm/Chaitanya_Rohilla_vs_Union_of_India.pdf

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