India Inc Raises Alarm Over Draft Digital Competition Bill 2024

India's tech industry voiced its concerns over the proposed Digital Competition Bill 2024 during a meeting led by MeitY Secretary S Krishnan. The session, initially set for June 13 but delayed, included representatives from the Competition Commission of India and the Ministry of Corporate Affairs. The Internet and Mobile Association of India (IAMAI) critiqued the bill, suggesting that it unfairly encompasses all digital firms under the definition of significant digital players, thus questioning the draft's scope.

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The Digital Competition Bill (DCB), inspired by the European Union's Digital Market Act 2022, aims to regulate big tech firms with a global turnover exceeding USD 30 billion. It introduces obligations for these firms, including news aggregators, to foster fair competition in the digital arena. However, IAMAI argues that issues addressed by the EU's DMA have already been resolved by India's existing Competition Act and suggests that unresolved matters could be better handled through amendments to the IT Act and Competition Act.

The bill has sparked mixed reactions from industry stakeholders, with major tech companies opposing it and startups largely in favor, advocating for its enactment. In April, a collective of 21 entities and 26 individuals expressed their concerns in a letter to Corporate Affairs Secretary Manoj Govil, highlighting potential impacts on various sectors of the digital economy.

Currently, India's Competition Act operates on an ex-post intervention framework, where actions are taken after anti-competitive conduct occurs. The absence of the India Cellular & Electronics Association (ICEA) from the meeting was noted. Meanwhile, Prateek Jain from the Alliance of Digital India Foundation (ADIF) praised the proposed law as a visionary step towards establishing India as a leader in the digital economy.

Jain emphasized that the legislation would promote innovation while ensuring fair competition, benefiting consumers and fostering sustainable growth. He assured ADIF's support in working with policymakers to create an ecosystem driven by innovation and inclusivity.

With at least two more rounds of consultations planned by MeitY, the future course of action regarding the Digital Competition Bill remains under deliberation. This ongoing dialogue underscores the complexity of regulating digital markets and balancing stakeholder interests in India's rapidly evolving digital landscape.