Stifling Edtech Platforms In China : Can This Be A Scenario In India?
INTRODUCTION
Various online platforms, including social media, along with the Edtech companies played a major role in imparting education to the kids, students and learners, which was stifled during Covid-19 lockdown. Government platforms and different other start-ups including various Edtech companies even provided free education so that even the children who have suffered the pangs of financial poverty during those times can also have access to learning. However, after the end of Covid-19, schools and universities have started at their full-fledged pace, thereby to keep the user base intact, different edtech platforms have started employing unethical practices that are sometimes even detrimental to the users. Thus, the question arises is about the regulation of these platforms.
While during continuance of the debate on this question in India, China released sweeping set of policy measures stifling the online education environment by causing death of Edtech companies. This blog is an attempt to analyse the Chinese policies and further make readers understand why they cannot be implemented in India as Edtech regulations.
EDUCATION CANNOT BE COMMERCIALISED: ANALYSING CHINESE EDTECH REGULATIONS
In India, the Hon’ble Apex Court in a number of rulings has time and again iterated that Education is neither a ‘business’ nor a ‘commercial activity’,rather it is a noble profession. The same intention can also be deciphered from the Chinese Edtech regulation policies. Titled as the “Guiding Opinions on Further Reducing the Homework Burden and Off-campus Training Burden of Students in Compulsory Education” (hereinafter may be referred to as ‘Guiding Opinions’), the regulations in the name of ‘Guiding Opinions’ aim to improve school education and off-campus training, and reduce the homework burden and off-campus training burden on the students. Edtech companies in China provide for the off-campus training after schools. The policies show a bona fide face by mentioning their aims and objectives such as building a high-quality education system in China by strengthening school education, building a good educational ecology within China, alleviating the anxiety of parents, etc.
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The first 8 paragraphs seem like guidelines, however the third part of the ‘Guiding Opinions’ in paragraph 12 provides that the schools shall ‘strengthen and optimize free online learning services.’ The Opinions direct that in order to provide the students with high-quality thematic education and learning resources for free, the education department shall develop and collect high-quality online education and teaching resources. and use national as well as local education and teaching resource platforms and high-quality school network platforms.
However, the major breakthrough arises in Paragraph 13 of the Guiding Opinions that mentions that no new subject-based Edtech platforms (i.e., off-campus training institutions) will be approved by the localities now onwards as well as the existing Edtech platforms will be uniformly registered as ‘non-profit institutions.’ The Edtech platforms whose application is still in the pipeline for the approval will have to go through new approval system. The Guiding Opinions also provided that all provinces ‘must’ conduct a comprehensive investigation of the Edtech platforms that have been filed, and re-approved. If they fail to pass the approval stage, then the original registration and permit issued by the Ministry of Industry and Information Technology of China will be cancelled.
The Edtech platform running without approval of the Government and do not have the requisite qualifications shall be investigated severely and further dealt with. The Guiding Opinions also prohibit the Edtech platforms from going public for financing, and capitalization operations. Further, the listed companies are also prohibited from investing in the Edtech platforms through stock market financing and purchasing their assets through shares or cash. The investment of foreign capital is also prohibited through mergers and acquisitions, entrusted operation, etc. The Guiding Opinions mention that those ‘who have violated these regulations shall be cleaned up and rectified.’
IMPACT OF CHINESE REGULATIONS IN CHINA & IMPLEMENTING THEM IN INDIA
India is one of the major fastest growing economy in the world; thanks to the technological revolution. Implementing the Chinese Guiding Opinions in India is likely to do more wrong than good to our education system. It is well-known that the regulations for Edtech platforms is absent in India as a result of which they adopt mala fide practices, thereby harming customers. Moreover, the self-regulation mechanisms as adopted by these platforms are reportedly failing day-by-day. In this extreme urgency, regulation of Edtech platforms is necessary. However, Chinese Guiding Opinions cannot be adopted.
The haphazard introduction of such guiding opinions by the China immediately stifled the growth of Edtech platforms. The economic structure of Edtech platforms jolted while the parents and people hating private Edtech start-ups were happy with the introduction of such regulations. Edtech companies like New Oriental Education & Technology, Gaotu Techedu, and TAL Education Group faced immediate fall of 50 percent in their shares after the introduction of these regulations. This marked the commencement of slow death of the Edtech infrastructure existing in China as the very intention behind setting up of such private institutions i.e., to earn profit got demolished through the regulations.
Thus, implementing such regulations in India would not only stifle the Edtech platforms and Indian economic structure but the free learning available to marginalised class at their comfort also get badly impacted.
IN CASE, CHINESE REGULATIONS SEE LIGHT OF THE DAY IN INDIA
If the Guiding Opinions or some alike regulations are enforced in India, then they have to first pass through the parliamentary proceedings i.e., debate, discussion and deliberations. However, if the Government notifies them as ‘rules’, then if inconsistent with the public policy or constitution of India, the same can be challenged in the Hon’ble High Court or the Apex Court of India in a similar manner as Information Technology 2021 rules were challenged.
However, the concern would be how the Hon’ble Courts analyse ‘imparting Education’ as mentioned earlier, in plethora of occasions, the Hon’ble Apex Court has said that the Education is not a business, thereby the Edtech platforms cannot even claim Article 19(1)(g) of the Constitution unlike e-gaming platforms. Considering the past pronouncements, the Hon’ble Apex Court is likely to support the Government move to enforce said law.
Moreover, the argument that traditional coaching and tuition centres exist, then the Edtech platforms must have their presence too is itself flawed as both are significantly different in their approach of imparting education. Moreover, even some states in India have laws to regulate coaching institutions. However, regulating Edtech platforms by a state legislation would be difficult as though they are competent by virtue of Seventh Schedule List III Entry 25, there is likelihood of different laws in different state, which would be detrimental to the interests of Edtech platforms.
CONCLUSION
The policy of present Indian Government if watched keenly has always aspired for the facilitation of Indian economy by pumping domestic or foreign investment, helping start-ups, etc., thereby providing for ‘ease of doing business’. Moreover, the Government itself during Covid-19, launched various online portals free of cost to ensure that the learning of students might not get affected example being Swayam portal and Swayam courses. Thus, there is likelihood that no such stringent regulations as are in China would see light of the day in India.
Author: Kaustubh Kumar is a third-year law student pursuing B.A., LL.B. (H), National University of Study and Research in Law, Ranchi, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing.
