Digital Competition Bill: Shaping the Future of Big Tech in India

The Digital Competition Bill is India’s new step towards regulating big tech companies and ensuring fair competition in the digital world. Introduced in 2023, it focuses on keeping large digital companies in check, especially those known as Systematically Significant Digital Enterprises (SSDEs). This new law is designed to cover gaps left by the older Competition Act, 2002, which wasn’t built to handle modern digital business practices.

What’s the Purpose of This Bill?

The Bill aims to:

• Encourage innovation and healthy competition among businesses.

• Protect users from unfair practices by big tech companies.

• Ensure that digital markets are fair, open, and transparent.

Key Features of the Digital Competition Bill

1. Proactive Regulation (Ex-Ante Framework):

2. Unlike older laws that stepped in after a problem occurred, this Bill allows the Competition Commission of India (CCI) to act before unfair practices harm the market. This helps prevent issues like favouring their own products over competitors’ or misusing user data.

3. Big Tech Under Watch:

4. Big companies like global tech giants will have to follow strict rules. If they break these rules, they could face fines up to 10% of their global earnings.

5. Mandatory Reporting:

6. Companies meeting certain size or user thresholds must report their activities to the CCI. This helps keep their operations transparent.

7. New Law – The Digital Competition Act:

8. A new law will be introduced to handle digital business practices separately, making regulations clearer and more flexible.

9. Rules for Big Digital Companies (SSDEs):

10. Companies will be identified as SSDEs based on their market size, revenue, and number of users. These companies will have extra responsibilities to ensure they don’t misuse their power.

11. Fair Play Rules:

12. SSDEs must:

    • Deal fairly with users and competitors.

    • Handle user data responsibly.

    • Not promote their own products unfairly or block competitors.

      
      

Real-World Case Studies: How Other Countries Are Regulating Big Tech

1. European Union – The Digital Markets Act (DMA):

2. The EU’s Digital Markets Act targets big companies like Google, Apple, and Amazon. For example:

   • Google was fined €4.3 billion for using its Android system to push its own apps over competitors’.

   • Apple faced scrutiny for controlling its App Store, making it tough for other app developers to compete fairly.

3. United States – Antitrust Lawsuits:

4. In the US, companies like Facebook (Meta) and Amazon have faced lawsuits for:

   • Facebook was accused of buying rivals like Instagram and WhatsApp to crush competition.

   • Amazon was investigated for giving its own products better visibility than third-party sellers.

5. South Korea – App Market Regulations:

6. South Korea passed a law forcing Google and Apple to allow other payment systems in their app stores. This stopped them from charging high fees and controlling in-app purchases.

   
   

What Does This Mean for Businesses in India?

• Higher Compliance Requirements: Businesses will need to follow strict rules about data usage and fair competition.

• Avoiding Legal Risks: Companies must ensure they don’t engage in unfair practices, or they risk heavy fines.

• Staying Updated: Since the law is evolving, businesses should keep track of new rules and possibly seek legal advice to stay compliant.

  
  

Conclusion :

The Digital Competition Bill is a big step towards ensuring that India’s digital markets are fair and competitive. It reflects global trends where countries are taking stronger actions against big tech’s unfair practices.

If you’re a business looking to understand how this Bill might impact you, or if you need help with compliance, feel free to reach out to us at dCorpo Legal. Our experts can guide you through the legal landscape with ease. Visit Us- https://www.dcorpo.legal/