Breaking Down Digital Silos: The Case for Independent Compliance Standards

In a revealing analysis of India’s digital economy, stark contrasts have emerged across different sectors that share similar digital DNA. While OTT platforms demonstrate a robust 71% technical compliance rate, digital astrology services lag significantly at 14%, with online gaming positioned at 39%. These numbers tell a story larger than individual industry performance – they…

21 October, 2024 Article, News
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In a revealing analysis of India’s digital economy, stark contrasts have emerged across different sectors that share similar digital DNA. While OTT platforms demonstrate a robust 71% technical compliance rate, digital astrology services lag significantly at 14%, with online gaming positioned at 39%. These numbers tell a story larger than individual industry performance – they highlight the critical need for standardized, independent evaluation frameworks that can compare digital businesses across sectors.

“The digital economy doesn’t operate in silos,” explains Sameer Kochhar, Chairman of SKOCH Group. “Whether it’s gaming, OTT, digital lending, or astrology services, these platforms share common challenges in user protection, data handling, and responsible business practices. Yet, until now, we’ve lacked the tools to make meaningful comparisons across these sectors.”

The implications of this gap became evident when the Directorate General of GST Intelligence (DGGI) recently classified digital gaming as a high-risk sector. This classification, made without comparative industry benchmarks, highlights the vulnerability of individual sectors to regulatory scrutiny when viewed in isolation.

SKOCH’s comprehensive framework, developed through extensive consultations with government bodies, academia, and industry stakeholders, offers a solution. With over 80 specific indicators for the gaming sector alone, it provides granular insights that neither industry associations nor self-regulatory organizations can match due to inherent conflicts of interest.

The framework’s effectiveness is demonstrated through its initial findings. While OTT platforms excel in content classification and user protection, achieving 100% compliance in device neutrality and IPR protection, digital astrology services show significant gaps in age restrictions and mental health safeguards. Online gaming falls between these extremes, revealing both strengths in age verification and areas needing improvement in credit restrictions.

“What makes these comparisons powerful is their ability to identify best practices across sectors,” notes Kochhar. “When we see OTT platforms achieving high compliance rates, it creates a roadmap for other digital businesses to follow.”

This cross-industry perspective serves multiple purposes. For businesses, it provides clear benchmarks and competitive insights. For regulators, it offers objective data to inform policy decisions. For users, it ensures consistent protection standards across digital services.

The framework’s independence is crucial. While industry associations play valuable roles, their focus on specific sectors limits their ability to drive broader digital economy standards. SKOCH’s position as an independent evaluator, endorsed by diverse stakeholders from the Ministry of Information and Broadcasting to the NHRC, enables it to maintain objectivity while fostering cross-industry learning.

As India’s digital economy evolves, the need for such independent, comparative frameworks becomes more pressing. The initial compliance scores – ranging from 71% to 14% across sectors – demonstrate significant variations in digital responsibility standards. These gaps present both challenges and opportunities for improvement.

Looking ahead, this framework promises to shape more nuanced policy discussions. Rather than treating each digital sector as an isolated entity, it enables evidence-based comparisons that can inform balanced regulatory approaches. For businesses, particularly in sectors like digital gaming that face increased scrutiny, participating in such independent evaluations offers a path to demonstrate commitment to responsible practices while benefiting from cross-industry insights.

The message is clear: in today’s interconnected digital economy, independent cross-industry compliance standards aren’t just beneficial – they’re essential for sustainable growth and effective regulation.

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