RETHINKING THE DIGITAL COMPETITION BILL IN INDIA

Abstract

India’s digital economy has seen an unprecedented rise in online platforms and digital services which resulted in new competition challenges that the traditional Competition Act, 2002 struggles to address. The proposed Digital Competition Bill (DCB) looked to introduce an ex-ante regulatory framework aimed at preventing anti-competitive conduct before it occurs. Drawing inspiration from the European Union’s Digital Markets Act and the United Kingdom’s Digital Markets, Competition and Consumers Act, the Bill proposed the designation of Systemically Significant Digital Enterprises (SSDEs) and their Associated Digital Enterprises (ADEs) to regulate core digital services such as search engines, app stores, and social media. However, the Bill faced significant resistance from industry stakeholders, who criticized its subjective thresholds, potential misuse, and lack of clarity in showing SSDEs. Consequently, the government withdrew the draft, opting to design a framework more suitable to India’s unique digital ecosystem. This paper traces the historical evolution of competition law in India—from the MRTP Act, 1969 to the Competition Act, 2002—and critically examines the need for specialized digital competition legislation. It also offers a comparative perspective with global regimes and evaluates the implications of adopting an ex-ante model in India. The study concludes that while India urgently needs a regulatory framework tailored to its digital economy, such a law must be context-specific, balanced, and designed to foster innovation alongside fair competition.

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