Key Points
New Delhi:The Centre-appointed panel to review the need for digital market regulation has recommended the introduction of a separate Digital Competition Act (DCA) with ex-ante, i.e., pre-emptive, measures to regulate large digital enterprises selectively..
In February last year, the Ministry of Corporate Affairs (MCA) constituted the Committee on Digital Competition Law (CDCL) to examine issues linked to the need for a separate law on competition in digital markets in India, including the need for an ex-ante regulatory framework..
In its report, the CDCL has recommended ex-ante legislation, specifically applicable to large digital enterprises, to supplement the competition Act and ensure that behaviours of large digital enterprises are proactively monitored and that the CCI intervenes before instances of anti-competitive conduct transpire...
According to the draft bill, an enterprise will be considered a Systemically Significant Digital Enterprise (SSDE) in respect of a Core Digital Service if it has a turnover of at least Rs 4,000 crore in India or a global turnover of at least $30 billion or a gross merchandise value of at least Rs 16,000 crore in India or global market capitalisation or fair market value of $75 billion, and if its core digital service has at least one crore end-users or at least 10,000 business users in India in each of the preceding three financial years...
The draft law has recognised that digital markets are dynamic and has wisely left room for the ministry or the CCI to periodically review and revise various aspects such as the thresholds for designation of entities on which the law would apply and the conduct requirements of a digital service, he said...
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