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Government may exempt early-stage startups from data protection regulations

The government is considering exempting early-stage startups from mandatory data protection compliance under the draft Digital Personal Data Protection Bill, 2022.

According to an official source cited by ET, the exemption may be granted for a limited period of time to ensure that early-stage startups are not overburdened with compliance and can develop and innovate their business models. The government cited the same compliance burden on startups as one of the reasons for withdrawing the previous iteration of the bill. The Centre has been championing the draft DPDP Bill and assuring citizens that the government will not be able to violate their privacy.

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