India’s Digital Competition Bill: Towards Proactive Regulation Of Big Tech
- IJLLR Journal
- 15 hours ago
- 1 min read
Vyshnavi Epari, Lovely Professional University
INTRODUCTION:
India is on the verge of a regulatory change in the digital economy. The Digital Competition Bill 2024 (Bill) is a proposed legislation which intends to curb the increasing market power, and anti-competitive conducts of the large Technology firms, by shifting paradigm from reactive enforcement model to a preventive model. This change from ex-post to ex-ante regulation is a major evolution in the Indian competition law that is suitable for the intricacies of digital markets.
WHY EX-ANTE REGULATION?
The digital markets are significantly different from the traditional market. They are marked by network effects, data-based dominance, and incredibly high entry barriers that enable a set of big players to establish their positions very quickly. Under the Competition Act 2002 (Act), ex-post regulation of anti-competitive conduct is currently being made by the Competition Commission of India 2002 (CCI) ie. intervening after harm has occurred. But in the spaces of supercharged digitality, such damage might be already irreparable once something is done about it.
As such, having acknowledged these challenges, the Standing Committee on Finance, while issuing its 2023 report, has noted a “growing imbalance in bargaining power between digital platforms and market participants” and has recommended adopting an ex-ante approach for regulation of “systemically significant digital intermediaries”.
GLOBAL CONTEXT: COMPARATIVE DEVELOPMENTS:
The Indian action falls in line with the latest regulatory activity in other jurisdictions:
