May 17, 2024

The Digital Competition Bill (DCB) aims to regulate Systemically Significant Digital Enterprises (SSDEs) and their Associate Digital Enterprises (ADEs) to prevent Anti-Competitive Practices (ACPs) by drawing inspiration from the Digital Markets Act (DMA) of the European Union. Here are its key provisions: Ex-Ante Regulation: DCB empowers the Competition Commission of India (CCI) to intervene preemptively, preventing potential ACPs before they occur. Core Digital Services (CDS): Services susceptible to market concentration are listed in Schedule I, forming the basis for identifying SSDEs. These are enterprises with significant market presence in CDS, as designated by the CCI. Obligations of SSDEs: SSDEs must report to the CCI regarding their ADEs involved in providing CDS. They are also prohibited from favoring their own products/services, using non-public business user data, or hindering end users’ ability to access third-party applications. Coverage of Enterprises outside India: CCI can initiate inquiries against non-compliant enterprises irrespective of their location. The Need for DCB arises from: Inadequacy of the current ex-post framework (intervening after an event) under the Competition Act, 2002, which lacks timely resolution of anti-competitive conduct by digital enterprises. Ineffectiveness in addressing irreversible market tipping in favor of large digital firms. Prevalence of practices like data collection and self-preferencing by tech giants. To foster the orderly expansion of the digital ecosystem This will not only help Indian companies to compete but also help some new age Indian Entrepreneurs i.e aspirational Indians who are starting business in various towns in India such as those new Company Registration in Jaipur, where the young Indian wants to compete with these giants as it will create a level playing field for all of them