Anti-competitive Practices:

·       Examples include self-preferencing, where dominant companies prioritize their own products or services over others, and the restriction of third-party applications, limiting competition and innovation.

·       An illustration of this is Apple’s control over the installation of third-party applications on iPhones, which restricts user choice and competition.

Limited Consumer Choices:

·       Digital monopolies often employ anti-steering provisions to prevent users from leaving their platforms and using alternatives.

·       Mandating the use of proprietary payment systems within app stores limits consumer choice and stifles competition.

Data Privacy and Security Concerns:

·       Concentration of user data in the hands of a few dominant companies poses risks such as surveillance, privacy breaches, and targeted marketing.

·       Lack of competition may reduce incentives for companies to prioritize robust data privacy and security measures.

Recommendations (Standing Committee on Finance Report, 2022)

 Systemically Important Digital Intermediaries (SIDIs):

·       Propose categorizing leading players in digital markets as SIDIs.

·       Subject them to specific ex-ante provisions to ensure fair competition and prevent monopolistic practices.

Legal and Institutional Measures:

·       Advocate for the enactment of a Digital Competition Act to address anti-competitive practices in the digital space.

·       Strengthen the Competition Commission of India (CCI) to effectively regulate and enforce competition laws in the digital sector.

Measures to Address Digital Monopolies

 Competition Commission of India (CCI):

·       Acts as a statutory body under the Competition Act, 2002, protecting Indian markets against anti-competitive practices by enterprises.

·       Responsible for investigating and taking action against monopolistic behaviour in the digital market.

Consumer Protection (E-Commerce) Rules, 2020:

·       Aim to regulate e-commerce platforms and ensure the protection of consumer rights.

·       Provide guidelines for fair practices and transparency in digital transactions.

Digital Personal Data Protection Act, 2023:

·       Intended to ensure data privacy and security in the digital realm by regulating the collection, storage, and use of personal data.

·       Aims to safeguard user privacy and mitigate the risks associated with data concentration in the hands of digital monopolies.