Govt extends Digital Competition Bill consultations to 15 May
NEW DELHI : The ministry of corporate affairs has extended the timeline for consultations on the draft Digital Competition Bill, as well as the report filed by the committee on digital competition law, to 15 May. The Bill and the CDCL report propose a standalone regulation on tackling big tech firms, and the impact of their market might in India.
If and when it is notified, the law will see India take a similar approach as the European Union. The EU in November 2022 introduced the Digital Markets Act (DMA) to address competition and market practices issues specific to the likes of Amazon, Apple, Meta’s Facebook and Instagram, Google, and Microsoft.
In its present shape, the Bill has proposed a penal structure for those found guilty of anti-competitive practices, and has also suggested restrictions to cross-sharing of data and breaking up of groups of apps and services that serve only specific companies. Industry stakeholders have so far stated that lengthy consultations will be likely before any version of the Bill is tabled in Parliament.
“Right now, quite a few definitions under the Bill and the CDCL report are not astutely clear. We also need to understand that breaking up app ecosystems is not that easy—and a fair business ecosystem does not necessitate putting bigger firms at a disadvantage," a senior partner at a law firm in Delhi told Mint, requesting anonymity since the firm’s own consultations for the Bill are underway.
A second senior competition lawyer in Delhi, who also requested anonymity on similar grounds, added that while the present Bill is “largely based" on the EU’s DMA, it “may not be the best approach… since EU laws are very stringent due to them being a consumption-led economy". “India, on the other
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