Modern bills like proposed digital competition law must conform to Constitution: SC judge Kohli

New Delhi: Terming the Constitution as the "bedrock" of any legislation, Supreme Court judge Hima Kohli has said modern laws like the proposed Digital Competition Bill, 2024, must be in line with the constitutional principles of checks and balances.

The judge was addressing an event "Taking Stock: Evaluating the Progress of India's Draft Digital Competition Bill, 2024" at the India Habitat Centre on Tuesday.

"The bedrock of any legislation is the Constitution of India. Modern legislations must be in line with constitutional principles of checks and balances, and meet the standards of a society governed by the rule of law," Justice Kohli said while delivering the keynote address.

Justice Kohli said India, which is the second largest internet market with 881 million users, has been facing significant problems in the digital market.

These are "preferential pricing, deep discounting, anti-steering, bundling and tying, accumulation of big data and its usage, network effects, exclusive tie-ups, search and rank preferencing, restricting third-party applications, advertising policies etc,” she said.

The inter-ministerial consultation process on the Digital Competition Bill (DCB), which is anticipated soon, must deal with the concerns of the digital market, Justice Kohli said.

"The impact of the Bill on various sectors and domains of the digital economy, including user experience, data protection and security, supply chains, investments, business costs and consumer affordability would have to be seen," she said.

"Before finalising industry consultation, it is crucial to carefully consider concerns voiced by companies and allied associations to thread the needle between promoting a competitive environment without deterring innovation, allaying concerns of all stakeholders and being on the lookout for the burgeoning lessons from the other antitrust regulators," Justice Kohli said.

She outlined the DCB's key provisions which empower the Competition Commission of India (CCI) to regulate Systemically Significant Digital Enterprises.

Noting the Bill's "flexible, principles-based approach" and contrasting it with the Digital Markets Act of the European Union, Justice Kohli said these measures aim to ensure market fairness and transparency.

She said proponents argue that the DCB will foster innovation and improve consumer choice, but critics warn that it might impose high compliance costs and stifle market growth.

Justice Kohli underlined the importance of balancing regulation with the need to avoid deterring innovation.

During the event, a roundtable meeting, a report by the Esya Centre, "A Survey-Based Assessment of the Draft Digital Competition Bill's Impact on Consumer Welfare in Digital Markets" was also launched.

The report provides an analysis of the potential effects of the DCB on consumer welfare and digital markets.