Nithyakalyani Narayanan. V
The draft Digital Competition Bill, a piece of proposed law aimed at curbing the anti-competitive behaviours of Big Tech businesses, was made available for public review by the Ministry of Corporate Affairs (MCA) on March 12, 2024.
The law seeks to impose limitations on larger businesses according to their number of users, global market capitalization, turnover, gross merchandise value, and other variables. This occurs at a time when Indian businesses and Big Tech giants are frequently at odds over a variety of problems.
Businesses that violate competition regulations may be subject to fines of up to 10% of their worldwide revenue and up to three years in jail.
“Systemically Significant Digital Enterprises” (SSDEs) that offer fundamental digital services in India and have a sizable presence and substantial financial strength in the nation are to be particularly regulated, according to the draft bill.
The report that the Committee on Digital Competition Law (CDCL) issued to the Ministry of Corporate Affairs on February 27 includes the proposed bill.
In 2022, the Parliamentary Standing Committee on Finance requested the government to look into the necessity for a new law on competition in digital marketplaces, and the ministry acted on this suggestion to form the committee.
The report is available on the website of the Ministry of Corporate Affairs. The report and the draft bill shall be available under the e.consultation module on 15.03.2024 for comments and suggestions. Stakeholders may submit their comments/suggestions up to 15.04.2024.