Centre In No Hurry To Introduce Digital Competition Bill, Says Harsh Malhotra

Malhotra highlighted the importance of analysing digital competition laws in other jurisdictions, such as Australia, the EU, and Japan to evaluate how relevant they are for the Indian market

The minister said that the Digital Competition Bill aimed to prevent anti-competitive practices by major tech companies to ensure a level playing field in the country’s digital economy.

Source : PTI

Minister of State for Corporate Affairs, Harsh Malhotra, said that the Indian government is not in a rush to bring the Digital Competition Bill as the authorities want to follow due process and conduct elaborate discussions on the proposed legislation before taking it forward.

Speaking at the 10th National Conference on Economic of Competition Law in Delhi on Sunday, the minister said that the government plans to carefully assess the revisions in the legislation before moving ahead with the implementation, reported Business Standard.

Looking Into Global Practices

Malhotra further stressed the importance of analysing digital competition laws in other jurisdictions, such as Australia, the European Union, and Japan to evaluate how relevant they are for the Indian market

"There is a need being felt for a Digital Competition Bill. We are not in a big rush. After due process, the government wants to bring this Bill. Indian players in the digital market should not be dominated by global players, and they should not dominate the smaller players - these discussions are on. Electronics ministry report on this has to come,” the minister noted.

While acknowledging that strict regulatory interventions were necessary, Malhotra also stressed the importance of encouraging self-regulation and compliance among market participants. He asserted that India's economic future depended on the strength of its markets and that fair competition played a vital role in sustaining growth.

The minister said that the Digital Competition Bill aimed to prevent anti-competitive practices by major tech companies to ensure a level playing field in the country’s digital economy.

AI and New-Age Market Regulations

At the event, Competition Commission of India (CCI) Chairperson Ravneet Kaur underscored the need for regulation that fostered innovation. She pointed out that as artificial intelligence (AI) gained widespread adoption, new forms of market collusion could emerge without human intervention. These included price coordination through algorithms and algorithmic discrimination under dynamic pricing models.

“Regulators need to be up to date and ahead in the adoption of technology and its implications for competition. Markets are no longer shaped by simple supply and demand. There are detailed complex systems, operating currently, where incentives, efficiencies, and strategic behaviour interwine,” Kaur explained.

Discussing the settlement and commitments provision under the Competition Amendment Act, she mentioned that the CCI was focused on a trust-based regulatory approach. This framework allowed stakeholders to present their case even at the stage of a primary facie opinion if a contravention was identified.

If stakeholders demonstrated a willingness to make commitments, the regulator remained open to evaluating them and ensuring timely market corrections.

Kaur also addressed the issue of penalties, noting that global turnover figures would be applied in cases where companies either failed to provide turnover data or did not disclose relevant financial details.

Developments in Big Tech Cases

In reference to the ongoing WhatsApp-Meta case, Kaur revealed that the companies were preparing to submit their compliance reports. The CCI had previously ruled that WhatsApp’s data-sharing practices constituted an abuse of dominance, leading to a penalty and market correction directives.

Regarding the Amazon-Flipkart abuse of dominance case, she stated that 46 petitions were filed by different parties, all of which have been transferred to the Karnataka High Court. She assured that the CCI remained committed to delivering final orders without unnecessary delays. “The commission has been very active in (ensuring) that we should not be lost in the way of delivering final orders,” Kaur stated.