MCA releases draft Digital Competition Bill for public consultation

The committee that studied the need for a digital competition law submitted its report to the government in February 2024

The Ministry of Corporate Affairs (MCA) on March 12 released the draft Digital Competition Bill, a proposed legislation that aims to tackle Big Tech firms' anti-competitive practices, for public consultation.

The bill aims to bring in regulations for bigger companies based on their turnover, gross merchandise value, global market capitalisation, number of users and other factors.

This comes at a time when Big Tech firms and Indian companies have often locked horns over various issues. For instance, recently, when Google delisted (then eventually restored) several Indian apps for non-compliance to its billing policies.

The draft bill is a part of the report that Committee on Digital Competition Law (CDCL) submitted to the Ministry of Corporate Affairs on February 27.

The committee was formed by the ministry based on the recommendations of the Parliamentary Standing Committee on Finance, which in a report from 2022, urged the government to examine the need for a separate law on competition in digital markets.

The MCA is inviting public comments on the said report and the Draft Bill until March 15.

It is important to remember, that in 2023, a huge controversy erupted over a consultation process that was taken up on the need for a digital competition bill.

Industry body IAMAI in their official comments had argued against the need for one. Following that, that many of its members criticised the trade body. The sentiment played a huge role in the trade body's governing body election as it resulted in the ouster of its Big Tech members from its governing council.