Conflict with the Indian government over the new IT rules is proving to be harmful for Twitter. This has led to a fall in its shares. Along with this, the company has to bear many other losses.
Twitter dispute with Indian government
Popular microblogging site Twitter, which refuses to accept the new IT rules of the Indian government, has suffered a major setback. Due to showing obstinate attitude to the government, it has been denied many exemptions. Along with this, his special status is also on the verge of ending. This is affecting the shares of the company. Twitter’s shares have fallen more than 25 percent in the market. It has come down from the 52-week high.
According to media reports, the company’s market capitalization has declined by Rs 13.87 billion, or Rs 1.03 lakh crore, due to Twitter’s dispute with the Indian government. On Wednesday, the company’s stock closed at $ 59.93, down 0.50 percent on the New York Stock Exchange. However, right now the company was seen trading close to $ 60.71.
Action after warning
Twitter was given the last warning by the Center on June 5 to comply with the new IT rules, but this warning did not have any effect on Twitter, due to which the government is being forced to end its intermediate platform status. Now action can be taken against the microblogging site if any complaint is received regarding the content.
Companies have to follow rules
Sanjeev Sanyal, Principal Economic Advisor in the Ministry of Finance, says that companies will have to follow Indian laws. Especially when foreign companies take sides in India’s internal political debate, such incidents give rise to foreign colonization. While it is not physically possible to do so, digital colonialism is also bad enough.
Police may inquire
It is said that if a user puts illegal or inflammatory posts on Twitter, then the police police will be able to interrogate top officials including the managing director of the company in India. Due to which protection under section 79 of the IT Act will not be available. Whereas Google, YouTube, Facebook, WhatsApp and Instagram will be safe from this.
Also read: This company going to sell 5.1 percent stake to SBI Cards and Payment Services, may prove to be the biggest deal of the year