Source: Mint
Context:
India is exploring a standalone Digital Competition Act to regulate Big Tech with upfront rules of conduct, rather than relying solely on the Competition Act, 2002 which acts only after breaches occur.
Key Highlights:
- Targeted Firms: Large technology platforms like Google, Meta, Amazon, and major domestic tech companies.
- Focus Areas:
- Use of consumer data
- Treatment of smaller competitors
- Maintaining fair competition for startups
- Segments covered: search, social networking, e-commerce, operating systems, cloud services
Policy Approach:
- Ex-ante / Pre-emptive Regulation: Rules are forecast-based, specifying ‘dos and don’ts’ upfront.
- Financial and market thresholds will identify companies capable of influencing markets.
- Aims to prevent dominance from being established before regulators can intervene.
- Alternative Approach: Adding a new chapter to the existing Competition Act, 2002, but this is less preferred as it acts post-breach and is considered too slow for digital markets.
