In a significant development, a group of members from the Internet and Mobile Association of India (IAMAI) have publicly opposed the industry body's stance on the draft Digital Competition Bill. These members, which include notable digital companies such as Bharat Matrimony, Match Group, ShareChat and Hoichoi, have urged the Ministry of Corporate Affairs to expedite the introduction of ex-ante regulations aimed at curbing the anti-competitive practices of Big Tech companies.
In a letter addressed to the Ministry, the dissenting companies stressed the urgency of implementing these regulations to address persistent concerns of Indian startups. They argue that such measures are crucial to curtail practices that stifle innovation, limit consumer choice, and hinder the growth of emerging businesses in India.
A key aspect highlighted in the letter is the need to reconsider the criteria for designating Systematically Significant Digital Enterprises (SSDEs) under the proposed Bill. The companies suggest raising the thresholds to ensure that nascent digital products and services remain protected, targeting only the actual gatekeepers of the internet. This, they argue, would help curb monopolistic practices while allowing Indian startups the freedom to thrive both domestically and internationally.
This push for stricter regulations comes in the wake of the Committee on Digital Competition Law (CDCL) publishing its report in March 2024. The report outlined various anti-competitive challenges in digital markets, including anti-steering, self-preferencing, and tying and bundling practices. The proposed Digital Competition Bill, as per the report, aims to introduce ex-ante regulations to address these issues.
