New digital competition law proposed to regulate big tech

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A high-level official panel under corporate affairs secretary Manoj Govil has proposed a new digital competition law with a set of dos and don'ts under an ex-ante framework to address potential abuse of dominance or other antitrust concerns involving big tech companies...

The new law, the panel says, would apply only to "systemically significant digital enterprises" (SSDE) that have "significant presence" in India, leaving small firms out of its ambit to not stifle innovation..

The penalty for violations of the law could be as high as 10% of the relevant entity's global turnover, it suggests...

ET had on August 12, 2023 reported that, on the basis of the panel's report, the MCA could recommend a separate digital competition Act, instead of tweaking the existing anti-trust law, with an ex-ante framework to regulate big tech...

The panel's report said: "Such an ex-ante law should ensure that behaviours of large digital enterprises are proactively monitored, and that the CCI intervenes before instances of anticompetitive conduct transpire.".

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