Four IAMAI members pen letter of dissent against draft Digital Competition Bill

New Delhi: A group of IAMAI members have voiced their dissent to the industry body's submission of the draft Digital Competition Bill and exhorted the Ministry of Corporate Affairs to move ahead with ex-ante regulations at the earliest. 

In a letter to the Ministry, four digital companies including Bharat Matrimony, Match Group, ShareChat, and Hoichoi have expressed a divergent view from the submission made by IAMAI. These companies have emphasised the need for ex-ante regulations to curb anti-competitive practices of Big Tech companies to address long-standing concerns of Indian startups to rein in practices that stifle innovation, limit consumer choice, and hinder the growth of young businesses.

"While we share similar concerns over the thresholds for designation of Systematically Significant Digital Enterprise (SSDE), IAMAI’s submission on the rest of the draft DCB seems to present obtuse concerns which go against the broader imperative of fostering fair competition across all core digital services in India, supporting the growth of startups and protecting consumer welfare in India’s digital economy,” their letter said.

The letter however underlines that the criteria for the designation of Systematically Significant Digital Enterprises (SSDEs) under the Bill requires reconsideration from the point of view of its impact on Indian startups. The letter suggests revising the thresholds upwards to make sure that nascent digital products and services remain protected and only the real gatekeepers of the internet are targeted under the Bill.

The letter argues that through this careful targeting, the government can curb monopolistic practices while ensuring that Indian startups have the freedom to thrive both domestically and internationally.

The Committee on Digital Competition Law (CDCL) published its report in March this year outlining the challenges associated with anti-competitive practices of digital enterprises such as anti-steering, self-preferencing, tying and bundling in the digital markets in India. The report proposed a Digital Competition Bill providing for ex-ante regulations to curb these anti-competitive practices. The report was open for public consultation and the last date for submission of comments was May 15 2024. IAMAI had submitted its comments on the report opposing the ex-ante regulations proposed in the Bill.