Indian startups urge MCA to ensure transparency in digital competition market study

In a united appeal to the government, a group of prominent Indian startup founders and digital economy advocates have written to Finance and Corporate Affairs Minister Nirmala Sitharaman, urging the Ministry of Corporate Affairs (MCA) to ensure transparency, independence, and inclusivity in the proposed market study on Digital Competition.

Read more: Industry endorses withdrawal of draft Digital Competition Bill

The letter, dated September 15, 2025, comes amid reports that the government plans to withdraw the current draft of the Digital Competition Bill, 2024 and instead commission a detailed market study before revisiting an ex-ante regulatory framework for digital markets.

" We see this development to conduct a market study not as a pause, but as an opportunity for deeper consultation and evidence-based policymaking. We respectfully submit that the underlying need for an ex-ante framework to regulate digital markets remains as urgent as ever," the startsup said.

Primarily proposed to prevent anti-competitive practices in the digital space, the draft DCB was released on March 12 (in 2024), and has been under the scanner ever since, mostly because of the proposed ex-ante regulatory framework. "We strongly believe that the current draft of the Bill should be withdrawn and have full faith in the PM Narendra Modi-led government that they will not enact legislation that is counterproductive to MSMEs (micro, small, medium enterprises) in India," Vinod Kumar, President, India SME Forum earlier told Storyboard18.

Big Tech’s anti-competitive practices under spotlight

In its latest letter to the FM, the startups, representing sectors from matrimony to regional OTT, said the need for ex-ante regulation remains urgent. They highlighted anti-competitive practices by large technology platforms, including:

- App store commission rates as high as 30% imposed on developers.

- Arbitrary deplatforming of Indian apps last year, which restricted innovation and market access.

“These practices create significant barriers for Indian startups, curbing their ability to compete fairly,” the letter noted, while welcoming the government’s earlier intent to introduce a proactive regulatory framework through the draft Digital Competition Bill.

Read more: Startups call for higher thresholds in ex ante regulations under Draft Digital Competition Bill

The letter was signed by Murugavel Janakiraman, Founder & CEO, Matrimony.com; Anupam Mittal, Founder & CEO, People Group; Snehil Khanor, Co-founder & CEO, TrulyMadly; Amit Gupta, Co-founder & CTO, TrulyMadly; Vinay Singhal, Co-founder & CEO, STAGE; Prateek Jain, Associate Director, Alliance of Digital India Foundation (ADIF); and Ravi Mittal, Founder & CEO, QuackQuack

Call for balanced policymaking

According to the signatories, much of the public discourse opposing ex-ante provisions has been shaped by research funded by global Big Tech firms and digital gatekeepers, often using “contestable methodologies.” They warned that this proliferation of one-sided reports could disproportionately influence perceptions and policy debates in India.

“To ensure policymaking remains balanced, evidence-based, and reflective of India’s unique needs, it is critical that the upcoming market study is conducted in an independent, rigorous, and transparent manner,” the founders wrote.

Key demands for the market study

The startup community outlined four key considerations for the government’s Terms of Reference (ToR) and the selection process for the agency that will conduct the study:

Clear and well-defined ToR: Objectives of the study should explicitly consider perspectives in favor of ex-ante regulation, covering issues like consumer welfare, innovation, and competitiveness of Indian startups.

Inclusivity of expertise: The study must engage not just large consultancies but also independent experts, academics, think tanks, and civil society voices with credibility and domain experience.

Enabling fair participation: The RFP should avoid restrictive criteria like the ₹50 crore turnover threshold for three consecutive years, which had earlier excluded smaller but capable institutions from the CCI’s market study on AI. Relaxing such conditions would encourage participation from specialized think tanks and academicians.

Transparency in bidder funding: Institutions bidding for the study must disclose funding sources and potential conflicts of interest to ensure credibility and public trust.

Read more: MeitY report on Digital Competition Bill awaited; stakeholders demand startups, MSMEs exemption

The startups expressed confidence that a neutral and inclusive market study would create a credible evidence base for future reforms, safeguarding the interests of both Indian startups and consumers.

“A level playing field is essential”

“India’s thriving startup community is committed to building an innovative and competitive digital economy. For this ecosystem to grow equitably, a level playing field must be ensured,” the letter concluded, adding that the signatories stood ready to support the government in shaping a forward-looking digital competition framework.

The letter was also copied to the Secretary, Ministry of Corporate Affairs.