India recently unveiled the Digital Competition Bill (DCB), and it’s got Big Techs sweating like a laptop under the Sun. The draft bill is part of the report presented by the Committee on Digital Competition Law (CDCL), which was set up by the central government in February 2023. India’s Ministry of Corporate Affairs (MCA) on March 12 released the draft Digital Competition Bill, 2024, for public consultation.
DCB targets Systemically Significant Digital Enterprises (SSDEs) basically, the Googles, Amazons, and Apples of the World, with a dominant market presence and financial muscle. The DCB wants everyone to have access to all the corners of the internet, not just the ones the big guys want us to see. The bill introduces several key provisions which we shall now discuss.
Imagine a fruit market where the vendor only pushes his own apples, burying oranges and mangoes under the counter. The DCB prohibits SSDEs from indulging in such self-preferencing as per Section 6 of the bill, ensuring a fair marketplace for smaller businesses offering competing digital services. In 2018, the European Commission fined Google €2.42 billion for giving an unfair advantage to its own comparison shopping service (called CSS). This provision dives into the murky waters of competition neutrality obligations, a hotly debated concept in courts. The moot question raised is how can the government ensure true neutrality without stifling innovation within the platform itself?
The DCB tackles anti-steering practices under Section 7, where SSDEs might act as bullies and manipulate users towards their own products or limit access to rival platforms. This provision delves into the world of interoperability, forcing SSDEs to play nice with competitors. For example, Facebook’s acquisition of WhatsApp raised concerns about anti-competitive behaviour. Critics argued that Facebook’s integration of WhatsApp with its own platform could limit users’ access to alternative platforms and hinder innovation.
The DCB empowers users by giving the centre stage to data transparency. It mandates SSDEs to be transparent about data collection and usage under Section 8 of the bill. This fosters trust and allows users to make informed choices about their data. But the bill doesn’t go as far as some European regulations, which grant users the right to be forgotten – the ability to have their data completely erased. One can expect DCB to be strengthened in future iterations to address this gap.
The DCB isn’t a silver bullet. It’s a draft, and the final version might see some revisions. The Optimist argue that the DCB is a significant step towards a more level playing field. It discourages anti-competitive practices, fosters innovation by smaller players, and empowers users with control over their data. Competition also breeds variety. The DCA could pave the way for a wider range of innovative digital services. Increased competition can lead to more competitive pricing, potentially benefiting consumers.
On the other hand, the sceptics arguethat the bill might be overly complex and difficult to enforce. The DCB needs to strike a balance between encouraging innovation and preventing anti-competitive practices. While fostering a healthy digital ecosystem is crucial, overly stringent regulations could stifle creativity. This debate lies at the heart of competition law, with the DCB needing to find a sweet spot that promotes both fair competition and technological advancement. Moreover, the criteria for designating an SSDE are still under scrutiny as per Section 2. How big is big enough? The final definition needs to be clear and objective to avoid loopholes and ensure fair implementation.
So, what does this mean for you and me? Well, hopefully, more choices, fairer prices, and a little more control over our precious online data. We might even see some new players emerge, shaking things up and offering innovative ideas. All in all, while the final draft and its impact remain to be seen, the conversation about fair play in the digital world has gotten a whole lot louder.
– This article has been written by Samika Verma (4th Year).
