MCA Seeks Public Input on Draft Digital Competition Bill, Potential Challenge for Big Techs

The Indian government is taking a big step towards regulating Big Tech companies with the Ministry of Corporate Affairs (MCA) inviting public comments on a new draft Digital Competition Bill. This bill aims to curb anti-competitive practices by large digital players and empower the Competition Commission of India (CCI) to regulate them more effectively.

The draft bill proposes a new legal framework – a Digital Competition Act – to specifically address the challenges posed by the dominance of major digital companies. This "ex-ante" approach allows the government to proactively prevent anti-competitive behavior before it occurs.

Key highlights of the bill include:

• Identifying Big Tech: The bill establishes clear criteria for designating a company as a "Systemically Significant Digital Enterprise" (SSDE) based on factors like user base, market capitalization, and turnover. Companies exceeding these thresholds will face stricter regulations.

• Enhanced Regulatory Powers: The CCI will gain new powers to investigate and penalize SSDEs for violations. These penalties can be substantial – reaching up to 10% of a company's global turnover.

• User Protection: The bill mandates SSDEs to implement transparent grievance redressal mechanisms, prevent fraud and data breaches, and comply with Indian laws like the Data Protection Act.

• Promoting Competition: The draft bill aims to level the playing field by prohibiting SSDEs from restricting users from using third-party apps. This comes after recent tensions between Indian startups and Google over its Play Store billing policies.

This move follows growing concerns about the dominance of Big Tech in India. The government aims to foster a more competitive digital ecosystem that protects both users and businesses. Public comments on the draft bill are open until April 15, allowing stakeholders to weigh in on this significant development.