Navigating the Digital Terrain: New DPDP Rules and Their Impact on Big Tech

The draft Digital Personal Data Protection (DPDP) rules, which require parental consent and potential data localization, pose significant challenges for tech firms. Implementing these regulations will demand structural adjustments and raise issues about data management, consent, and compliance, impacting major companies like Meta, Amazon, and Google.

The new draft of the Digital Personal Data Protection (DPDP) rules suggests significant changes, including parental consent for children's social media accounts and data localization requirements. These proposals carry substantial implications for tech giants such as Meta, Amazon, and Google, who may face hurdles in adapting to these requirements.

According to Deloitte India, firms will need to overhaul their systems to manage consent effectively, requiring significant alterations at both the design and architecture levels. This will necessitate investment in technical infrastructure as well as new consent management systems, complicating data collection and privacy practices.

Industry experts express concerns about various aspects of these rules, particularly data localization mandates. The draft rules provide essential clarity on certain compliance aspects but fall short in others, leaving businesses navigating a challenging regulatory landscape without comprehensive guidance.

(With inputs from agencies.)