Digital Competition Law for tech companies likely after Lok Sabha polls: Sources

By Parikshit Luthra

The Centre's plan to introduce a Digital Competition Law faces uncertainty, marked by significant resistance from major players in the tech industry and a lack of consensus among the government-appointed panel members.

Sources indicate that due to the upcoming general elections and the anticipated imposition of the model code of conduct, a decision on the proposed law might be deferred until after the general elections or postponed to the next government post-May 2024.

The committee responsible for formulating the Digital Competition Law, consisting of legal experts, government representatives, and the CCI chairperson, has convened approximately nine times without reaching a consensus. Notably, the committee has not convened in the last three months.

The parliamentary finance committee had earlier recommended a separate Digital Competition Law for India to regulate Big Tech companies, emphasising the need for specific criteria to identify such companies and prevent them from negatively impacting competition or hindering startup growth.

Sources say that influential figures within the government have received strong representations from Big Tech companies, urging caution in the formulation of Digital Competition Law to avoid potential harm to innovation and overall economic growth.

The committee on Digital Competition Law had been exploring the possibility of enacting legislation akin to the European Union's Digital Marketplace Act. The committee also aimed to establish criteria for identifying systematically important intermediaries and prevent them from exploiting data for their advantage.

Additionally, the committee considered imposing at least 10 obligations, including those related to interoperability and anti-steering, on these companies. However, the committee's progress appears to have encountered obstacles at present.