India is in “no hurry” to introduce and enact the much-anticipated Digital Competition Bill (DCB) and will move forward only after due diligence, Harsh Malhotra, Minister of State for Corporate Affairs (MCA), said on Sunday.
Speaking at the 10th National Conference on Economics of Competition Law, organized by the Competition Commission of India (CCI) in New Delhi, Malhotra emphasized the need for further study of global best practices, particularly those adopted by the European Union, Japan, and Australia, in regulating anti-competitive practices in digital markets. “We must examine how these frameworks fit into India’s digital regulatory ecosystem and whether modifications are needed,” he said.
The remarks come amid growing discussions on the necessity of an ex-ante regulatory framework for digital markets, which would allow proactive measures against monopolistic practices rather than the current ex-post approach, which addresses issues after they occur.
Ongoing Stakeholder Consultations and Regulatory Considerations
Malhotra highlighted that the MCA had already received over 100 suggestions on the draft DCB, which was published for public consultation. Additionally, the government is awaiting a report from the Ministry of Electronics and Information Technology (MeitY), which has conducted independent stakeholder consultations.
“We are committed to ensuring a level playing field in digital markets. Small and emerging players must be protected from any abuse of dominance by large global tech firms. Ensuring fair competition is our national responsibility,” Malhotra said. He also stressed the importance of real-time market monitoring and analysis to effectively regulate fast-evolving digital businesses.
“The digital world is fast-moving—things change within a span of just one or two months. There should be no adverse impact of monopolies on our 140 crore consumers. Fair competition is essential for a healthy economy,” he added.
Ex-Ante vs. Ex-Post Approach
The proposed DCB is expected to grant the CCI preemptive powers to regulate digital gatekeepers—large platforms that control critical digital infrastructure such as e-commerce, search engines, and app ecosystems. The bill is designed to introduce measures ensuring algorithmic transparency, data portability, and non-discriminatory practices.
Currently, India follows an ex-post regulatory model, where anti-competitive practices are addressed after they have caused harm. An ex-ante framework, in contrast, proactively curbs potential market abuses before they occur.
Malhotra’s comments come amid speculation that the government’s initial urgency to enact an ex-ante framework for digital markets may have slowed after an initial push following a December 2022 Standing Committee on Finance report. The MCA had subsequently formed a committee on digital competition law in February 2023 to study the issue further.
CCI’s Push for an Ex-Ante Framework
CCI Chairperson Ravneet Kaur recently reiterated the regulator’s support for an ex-ante framework, calling it a beneficial tool to maintain a competitive and fair digital marketplace. Kaur highlighted that digital markets require new regulatory mechanisms distinct from traditional competition laws due to their rapid growth, network effects, and data-driven nature.
A recent MeitY report, Estimation and Measurement of India’s Digital Economy, estimated that India’s digital economy contributed ₹31.64 lakh crore ($492 billion) to GDP in 2022-23, accounting for 11.74 per cent of national income. The report projected that the digital sector would grow nearly twice as fast as the overall economy, potentially contributing one-fifth of GDP by 2029-30.
Addressing Big Tech Dominance
The government’s focus on digital market regulations stems from concerns about the dominance of gatekeeper platforms, which wield significant control over consumer choices and market outcomes. These firms, by leveraging their scale and vast datasets, can stifle competition by prioritizing their own services over those of smaller competitors.
“The Digital Competition Bill aims to address these concerns by identifying gatekeeper platforms based on criteria such as market size, user dependency, and control over key digital services,” Malhotra explained. The proposed framework is expected to introduce obligations for greater transparency in platform operations, curbs on preferential treatment, and safeguards for emerging businesses.
Industry experts believe such regulations are essential to preserving innovation and consumer choice. “This is a step in the right direction. The digital economy is unlike traditional markets, and its regulation requires forward-thinking tools that preempt anti-competitive behavior before it harms consumers or innovation,” said a senior industry analyst.
Future Course: Striking a Balance
Despite acknowledging the importance of fair competition in digital markets, Malhotra indicated that India would not rush into enacting the DCB without thorough analysis. The government remains focused on fostering a regulatory environment that promotes competition, encourages innovation, and safeguards consumer interests.
“India’s economy is growing at a rapid pace and is on track to become the third-largest in the world within the next four years. A dynamic, competitive, and well-regulated digital market will play a crucial role in achieving this goal,” Malhotra said.
As consultations continue, stakeholders—including domestic startups, global tech firms, and policymakers—are closely watching how India balances regulatory oversight with the need to foster digital innovation. The evolving framework will determine how the country navigates the complexities of digital competition in the years to come, economy watchers said.
