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Committee on Digital Competition Law

Why is it in the news?

  • The Committee on Digital Competition Law, established by the Ministry of Corporate Affairs in February, released a report recommending legislation to regulate the market power of Big Tech firms like Google and Meta.

 Some of the Key Highlights

  • The report highlights concern regarding the market dominance of these Big Tech firms, attributing it to their ability to rapidly expand their user base and establish difficult-to-dislodge market power through network effects.
  • It suggests that the current Competition Act of 2002, designed for a different era, is insufficient to address the challenges posed by digitalization.
  • The proposed legislation, termed the Digital Competition Act, aims to supplement the Competition Act by introducing ex-ante regulations specifically for large digital enterprises.
  • Firms with a “significant presence” in the market for Core Digital Services would be designated as Systemically Significant Digital Enterprises (SSDEs) under the proposed law.
  • SSDEs would be required to determine their own designation, and failure to do so could result in penalties based on the entire corporate group’s global turnover.
  • However, experts anticipate significant impacts on major tech enterprises like Google, Apple, and Amazon, potentially leading to stifled innovation due to burdensome regulations.

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