Those with knowledge of the situation suggested that the government might implement a specific digital competition law to control big tech. According to them, the corporate affairs ministry is considering a different piece of legislation rather than making minor adjustments to the newly modified Competition Act.
It will take time to introduce a measure to this effect because of the complex nature of the problem and the conflicting opinions of the stakeholders. It will take some time because it will be a new law, according to one of the people who want to remain anonymous.
The person stated that the government is not in a rush to introduce a legislation on digital competition for the sake of doing so and that it plans to do so after careful consideration. “Even in countries like the UK and the US, the idea of a law to regulate large digital players has been under discussion for some time,” the individual stated.
Also read, IT Hardware Companies: Defer laptop import curbs by 9-12 months.
First report of the law submitted:
The first draught of a report by an official committee headed by corporate affairs secretary Manoj Govil, which was established to look at the necessity for any ex-ante regulatory framework for digital markets through a separate law and to research global best practices, among other things, is expected to be finished this month.
Stakeholder consultations have been completed, including with small businesses in the area and major international players like Apple, Amazon, Google, Meta, and Twitter.
Ex-ante rules in India are apparently opposed by major international IT corporations. The study will likely serve as the foundation for the government’s ensuing course of action. According to a second person, the current Competition Act has already been modified this year to allow it to address current difficulties and address concerns about fair trade that span sectors.
Therefore, he continued, “the current Act does not need to be amended again.” It is anticipated that the new law will strengthen the current Competition Act. According to insiders, the panel would probably define SIDI based on a number of factors, including the type of business, turnover, and user base (both local and global). In addition to its own inputs, the panel’s report will take into account the stakeholder recommendations and the parliamentary standing committee on finance’s report from December 2022.
For more business news, click here.