Fast-Moving Tech Markets Prove Vibrant Competition in India

With the emergence of new, dynamic tech hubs powered by thousands of startups across the country, India's technology industry is among the sector's shining beacons in Asia. More than 240 million Indians are now connected to the web - the third-highest total of any country in the world. And as that figure grows, India's demand for innovative tech solutions that keep up with its increasingly web-oriented, mobile-first sensibilities will grow as well. As the Indian government considers how to nurture and sustain this dynamic landscape, officials should view with caution any regulation that may stifle the very innovation it seeks to protect.

The European Commission's recent antitrust action against Google has garnered international headlines, and comes at a time when the Competition Commission of India is also examining complaints against Google. The EC's recent moves occur even as Google's hard-earned success is being challenged more aggressively than ever by competitors. This raises important questions about the proper regulation of an industry with so much competition that in the five years the European Commission has been investigating Google, the marketplace in Europe and across the globe hardly resembles its former self.

India is a prime example of the enormous amount of competition in the online space. As consumers now spend more and more of their time on mobile devices, we're seeing increasing competition in ways to find information online - from new entrants like Housing.com and Zomato, to voice-recognition services like Siri, to a rising number of mobile apps. And in the ad space, Facebook is now a major player because of the shifting of television advertising dollars to the web. This mobile revolution is particularly important in a country like India, which is among the largest emerging markets for this technology in the world.

Given the rapid rise of homegrown startups such as Flipkart, Ola Cabs, Hike and Quikr, Indian regulators should be optimistic about the future of home-grown innovation. Founded in 2007, Flipkart is now India's largest e-commerce company, offering 30 million products to its 45 million registered users across 1,000 cities and towns - with a potential valuation of $15 billion in its next round of funding. And since launching just last year, the auto-rickshaw and taxi-hire service Ola Cabs has grown from 10 to 127 cities and recently raised $400 million from investors in a deal valuing the company at $2.5 billion. If Indian policymakers continue to invest in infrastructure and expanding access to the Internet, this growth could be further accelerated.

For any tech company - whether it's an industry mainstay like Google or a nascent startup like Ola Cabs - success today in no way guarantees success tomorrow, especially during this period of rapid disruption. With an exploding number of entrants in the information-discovery space and users moving from desktops toward mobile and social, such vibrant competition makes the prior success of a company like Google hardly relevant.

While Indian competition authorities continue their investigation into Google, it's important to note that the United States Federal Trade Commission (FTC) declined to bring a formal complaint against Google. After a two-year, in-depth investigation, the FTC found that far from harming consumers, Google's products and services are of benefit to consumers. The investigation was balanced and thorough, and eventually reached a fair resolution - one that accounts for the dynamism and competitiveness of tech markets and the welfare of consumers. Considering the fierce competition we now see for our online attention, the FTC's decision is clearly correct and of greater value to consumers.

At the 2015 CES® - The Global Stage for Innovation - a number of Indian companies exhibited innovative technology solutions. Among the local firms on display: design firm Tata Elxsi, home health monitoring company Avantari Medical Systems and wearables maker Ducere Technologies. These innovators joined thousands of others from across the continents in Las Vegas - an illustration of how technology's growth and innovation are blossoming worldwide. These are exactly the kinds of businesses Prime Minister Narendra Modi is committed to growing through his "Digital India" and "Make in India" initiatives. By all signs we are on the right course, but we need to be cautious not to construct new regulatory roadblocks along the way.

While all regulators should take into account the benefits consumers receive from rapid industry growth and the intense competition that naturally comes with it, this is especially important in India. By allowing a competitive marketplace to flourish - with companies competing on the merits of their respective products - India can ensure consumers will continue to benefit from greater choices and lower prices, while also enjoying the fruits of incredible innovations.

Gary Shapiro is president and CEO of the Consumer Electronics Association (CEA)®, the U.S. trade association representing more than 2,000 consumer electronics companies, and author of the New York Times best-selling books, Ninja Innovation: The Ten Killer Strategies of the World's Most Successful Businesses and The Comeback: How Innovation Will Restore the American Dream. His views are his own. Connect with him on Twitter: @GaryShapiro.