Other BriefingsIndia’s Digital Competition Bill Advances with Industry Insights
India is currently reviewing stakeholder feedback on the Draft Digital Competition Bill (DCB), which seeks to curb anti-competitive practices in the digital space. The Ministry of Corporate Affairs (MCA) is evaluating input submitted during the March 12 to May 15, 2024, consultation period, as part of a balanced and consultative approach to promote a fair and inclusive digital economy.
India’s Minister of State for Corporate Affairs, Harsh Malhotra, emphasized that the Digital Competition Bill will follow a comprehensive legislative process before being finalized. Speaking at a conference in New Delhi on March 16, 2025, he noted that the central government intends to thoroughly review proposed revisions before proceeding with implementation.
In June 2024, the Ministry of Electronics and Information Technology (MeitY) conducted stakeholder consultations on the bill and is awaiting additional feedback. According to media reports, MeitY has suggested deferring the inclusion of the ex-ante provision, which would impose preemptive regulations on dominant digital platforms.
With over 100 stakeholders, including digital businesses and legal experts, having submitted their views, India is currently assessing their inputs before finalizing the bill.
Need for deliberation and balanced approach
Emphasizing the importance of adopting global best practices, the minister referred to regulatory frameworks from the European Union (EU), Japan, and Australia as reference points for shaping a digital competition framework suited to India’s unique ecosystem.
While recognizing the rising demand for a digital competition law, Malhotra underlined that India is aiming to strike the right balance between regulatory enforcement and voluntary compliance, reiterating that a robust and well-regulated digital market is essential for the country’s long-term economic growth and digital transformation.
He further emphasized the need to create a fair and equitable digital marketplace—one where global tech giants do not overshadow domestic firms, and at the same time, Indian companies do not take undue advantage of smaller players. He also noted that a comprehensive report from the MeitY is awaited to support and inform further discussions.
Regulatory frameworks to match with technological advancements
Adding to the discussion, Ravneet Kaur, Chairperson of the Competition Commission of India (CCI), highlighted the necessity for regulatory frameworks to evolve in tandem with emerging technologies, particularly in light of the increasing integration of artificial intelligence (AI) in market practices.
She pointed out that algorithmic pricing, automated decision-making, and non-human collusion are presenting new-age challenges to market fairness and competition. India’s digital marketplace now operates through complex systems involving strategic behavior, efficiencies, and evolving incentive structures—requiring regulators to remain proactive and agile.
Kaur also referred to the settlement and commitments mechanism introduced under the recent Competition Amendment Act, which encourages enterprises to engage with the CCI early during the investigation process. Through this mechanism, firms can offer corrective actions, which the Commission can evaluate for expedited resolution and market correction.
Furthermore, she noted that penalties based on global turnover will be enforced in cases where companies fail to disclose or provide local turnover data—an important tool to ensure effective deterrence.
Understanding India’s Digital Competition Bill
India’s Digital Competition Bill is a notable legislative initiative currently under consideration, aimed at addressing anti-competitive practices in the digital space. Led by the Ministry of Corporate Affairs (MCA), the bill stems from recommendations made by the Committee on Digital Competition Law (CDCL), constituted in 2023 to examine regulatory gaps in the existing competition law framework.
As India’s digital economy continues to expand at an unprecedented pace, concerns have intensified over the market dominance, self-preferencing, predatory pricing, and barriers to market entry created by a handful of large digital platforms, commonly referred to as big-tech.
The proposed legislation aims to transition towards a preventive, ex-ante regulatory framework, enabling early intervention against unfair market conduct and ensuring a level playing field for all market participants.
Legislative progress on the digital competition bill
The legislative process surrounding the bill has gathered momentum over the past year. In February 2024, CDCL submitted its final report and a draft Digital Competition Bill to the MCA. Subsequently, in March 2024, the central government initiated a public consultation process to gather feedback from diverse stakeholders.
On one hand, startups, small and medium enterprises (SMEs), and civil society organizations have largely welcomed the bill, considering it a positive step toward creating a level playing field. On the other hand, large tech companies have raised concerns about the broad criteria for designating Systemically Significant Digital Enterprises (SSDEs), potential regulatory overlaps, and compliance burdens.
The CCI has endorsed the proposed framework, emphasizing the importance of ex-ante tools to proactively curb market distortions. Discussions are currently underway across ministries, with inter-ministerial consultations ongoing as of March 2025. The bill is expected to be tabled in the Indian Parliament later in 2025, after revisions based on stakeholder inputs.
One of the institutional developments being explored is the establishment of a Digital Markets Unit (DMU) within the CCI to oversee implementation, enforcement, and compliance under the new digital competition regime.
Future outlook
The Digital Competition Bill represents a paradigm shift in India’s regulatory approach to the digital economy. It underscores India’s intent to create a more inclusive, innovation-friendly, and competitive digital marketplace, while preventing market dominance by large technology firms.
Its effective implementation will be critical to balancing regulatory oversight and market freedom, ensuring that digital innovation thrives without compromising on fair competition, consumer welfare, and business opportunities for smaller players.
As India prepares to usher in this regulatory transformation, the Digital Competition Bill could emerge as a model framework for digital economies in the Global South, aligning India’s competition law regime with evolving global best practices.
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