India is weighing a standalone Digital Competition Bill to regulate large technology platforms through ex-ante rules—a proactive shift aimed at curbing anti-competitive behavior before it harms the market. This marks a strategic pivot from case-by-case enforcement under the Competition Act of 2002 to a sector-specific framework targeting dominant digital players.
Status & Intent
- Paused for Refinement: As of September 2025, the bill is undergoing a fresh market study to recalibrate thresholds and obligations.
- Standalone Law Favored: The government prefers a new law over amending existing competition statutes.
- Focus on SSDEs: Targets Systemically Significant Digital Enterprises across app stores, ad tech, search, social media, e-commerce, and OS platforms.
Key Features Under Review
- Designation Criteria: Moving beyond blunt metrics (e.g., turnover, user base) to qualitative factors like control over bottlenecks, network effects, and incentive structures.
- Conduct Rules: Includes bans on self-preferencing, anti-steering, bundling, default settings, and mandates for data access and portability.
- Startup Safeguards: Thresholds are being revised to ensure only dominant platforms are regulated, avoiding unintended burdens on emerging players.
Stakeholder Dynamics
- Big Tech Pushback: Industry groups call the bill “prescriptive” and “regressive.”
- Startup Support: Indian startups broadly support the bill but advocate for higher thresholds to avoid overreach.
Comparative Table: India vs. Global Digital Competition Regimes
| Feature / Jurisdiction | 🇮🇳 India – Digital Competition Bill (Draft) | 🇪🇺 EU – Digital Markets Act (DMA) | 🇰🇷 South Korea – Online Platform Fairness Act | 🇯🇵 Japan – Digital Market Competition Enhancement Act |
|---|---|---|---|---|
| Legal Structure | Standalone ex-ante law (under review) | Standalone ex-ante regulation | Amendment to existing Fair Trade Act | Amendment to Anti-Monopoly Act |
| Regulator | Competition Commission of India (CCI) | European Commission | Korea Fair Trade Commission (KFTC) | Japan Fair Trade Commission (JFTC) |
| Platform Scope | Systemically Significant Digital Enterprises (SSDEs) | Gatekeepers (based on size & impact) | Large platforms with bargaining power | Digital platform operators with significant market power |
| Designation Criteria | Qualitative + Quantitative (under revision) | Quantitative thresholds (turnover, users) | Bargaining power, transaction volume | Market dominance, data control |
| Key Obligations | No self-preferencing, anti-steering, bundling, data portability | Similar obligations + interoperability | Fair contract terms, transparency | Transparency, fair data use, algorithm accountability |
| Enforcement Style | Ex-ante + case-by-case flexibility | Strict ex-ante with fixed obligations | Ex-ante + ex-post hybrid | Ex-post with some ex-ante elements |
| Penalty Mechanism | Fines + behavioral remedies | Fines up to 10% of global turnover | Fines + corrective orders | Fines + improvement orders |
| Startup Safeguards | Thresholds under review to protect startups | Exemptions for smaller players | Focus on platform–SME fairness | Tailored obligations for smaller platforms |
| Status (as of Sep 2025) | Paused for refinement, new market study | Fully in force since 2023 | Passed, enforcement ongoing | Enforced, with annual reviews |
Sources: Government briefings, regulatory filings, legal commentary.