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Digital competition law will provide more teeth to CCI to regulate digital markets, legal experts say

However, they feel that two co-existing anti-trust laws may lead to over-regulation and add to the compliance burden of firms, the burden of which ultimately the consumer may have to bear.

March 15, 2024 / 16:13 IST
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Digital competition law and its implications

Legal experts say  that the proposed digital competition law, if brought into force in its current form, will give more teeth to India’s anti-trust regulator, the Competition Commission of India (CCI) .

Tech companies such as Apple, Amazon, Flipkart, Zomato, Google, etc.,  are likely to be affected if the law comes into play.

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However, a section of experts feel that two anti-trust laws (the Competition Act, and this) may lead to over-regulation and a manifold increase in the compliance cost of  companies, the burden of which  consumers may have to bear.

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 (GMV), global market capitalisation, number of users, and other factors.