The Indian government is taking a measured approach before introducing the Digital Competition Bill, ensuring that it aligns with global best practices and effectively regulates Big Tech while fostering fair competition in the country’s digital economy.
Union Minister for Corporate Affairs Harsh Malhotra stated that while the need for a Digital Competition Bill is being felt, the government is in no rush to introduce it without thorough deliberation.
“We are not in a big rush. After due process, the government wants to bring this Bill,” Malhotra said at the 10th National Conference on Economics of Competition Law in New Delhi.
The minister emphasized that India must study global models from jurisdictions like the European Union, Japan, and Australia before finalizing the framework. He added that discussions are ongoing to ensure Indian players are not dominated by global giants, while also preventing monopolistic practices by large domestic companies.
Malhotra also stressed the importance of self-regulation and compliance alongside government enforcement, as India’s economic growth depends on a competitive, fair market.
AI Regulation and the Future of Digital Competition
The Competition Commission of India (CCI) is also keen on regulating AI-driven market practices. Ravneet Kaur, CCI Chairperson, highlighted that AI adoption is rapidly changing market structures, creating risks like algorithmic collusion and dynamic pricing discrimination without explicit human intervention.
“Markets are no longer shaped by simple supply and demand. There are detailed complex systems, operating currently, where incentives, efficiencies, and strategic behavior intertwine,” Kaur said.
The CCI is now focusing on trust-based regulation, urging stakeholders to come forward voluntarily to make commitments and market corrections when competition violations are identified.
She further noted that penalties on global turnover will apply in cases where companies fail to disclose turnover figures in competition cases.
Big Tech Cases Under CCI Scrutiny
Kaur provided updates on ongoing Big Tech antitrust cases, including the much-discussed WhatsApp-Meta case and the Amazon-Flipkart dominance inquiry.
WhatsApp-Meta Case: The companies will soon submit their compliance report to the regulator, following the CCI’s decision that found their data-sharing practices to be anti-competitive.
Amazon-Flipkart Case: The Karnataka High Court is currently handling 46 petitions related to the case, slowing down the investigation process.
“The commission has been very active in ensuring that we do not get lost in procedural delays when delivering final orders,” Kaur said.
The Indian government is also expected to release new guidelines on AI regulations, ensuring ethical AI deployment and preventing AI-driven anti-competitive behavior in digital markets.
With the Digital Competition Bill in the pipeline, India is working towards striking a balance between fostering innovation, protecting consumer interests, and ensuring a level playing field in the digital economy.
