Indian online startups and tech product companies are urging a parliamentary panel to enhance the threshold for preventive regulations in the Digital Competition Bill to safeguard domestic innovation.
The panel has sought input from the Ministry of Corporate Affairs regarding the feedback provided by Indian online players on the draft bill released for public comments in March last year.
The bill, inspired by the EU framework, aims to regulate large digital companies to address anti-competitive practices and define the role of the Competition Commission of India (CCI) in the digital sphere.
It classifies certain digital entities as systematically significant digital enterprises (SSDE) based on turnover or user count criteria.
The bill's thresholds include INR 4,000 Cr turnover or INR 16,000 Cr GMV in India over three years for SSDE classification.
Additionally, a digital entity serving over 1 Cr users or 10,000 enterprises will also be considered a SSDE under the bill.
Discussions on the Digital Competition Bill have resumed after prior delays related to the US-India trade negotiations.
US-India Business Council members, including tech giants like Google and Amazon, opposed the bill last year, citing its broad scope compared to the EU law.
The need for the Digital Competition Bill arises from instances of anti-competitive conduct by big tech companies in India, prompting calls for regulation to ensure fair competition.
CCl is investigating cases involving ecommerce giants like Flipkart and Google for potential anti-competitive behavior.
Some startups support the bill, while the Internet and Mobile Association of India (IAMAI) warns that it could deter tech startup investments.
The draft bill aims to balance regulation to prevent anti-competitive practices while protecting domestic innovation in India's digital market.
The bill reflects growing concerns over market dominance and unfair competition in the digital space, necessitating regulatory intervention.
The Indian startup ecosystem is divided over the implications of the Digital Competition Bill, with differing opinions on its potential impact on innovation and investment.
The role of the Competition Commission of India in overseeing digital markets is a key aspect addressed in the proposed bill.
Key players in India's digital economy have emphasized the importance of protecting domestic innovation while addressing anti-competitive behavior in the industry.
The evolving digital landscape in India necessitates a regulatory framework to maintain fair competition and prevent market dominance by large tech companies.
The parliamentary panel is considering input from various stakeholders to refine the Digital Competition Bill and ensure it supports both innovation and competition in India's digital economy.