Google, Meta, and other major technology firms have requested the Indian government to soften provisions in the proposed Digital Competition Bill (DCB), according to Moneycontrol on October 6. This contrasts with over 40 Indian startups that support the bill's preventive regulations for large digital platforms. The concerns were raised during consultations in September conducted by the Management Development Institute, Gurugram, which is studying the bill for the Ministry of Corporate Affairs (MCA).
During the consultations, large tech companies expressed acceptance of an ex-ante regulatory framework in principle but sought specific changes. They requested a clear appeal mechanism to contest designation as a Systemically Significant Digital Enterprise (SSDE), especially if a company lacks significant market presence in a service. They also urged that preventive obligations be imposed only after evidence of repeated violations or market failures within India, emphasizing the need for India-specific data rather than adopting rules from other jurisdictions. The companies cited the European Union’s experience to argue for proportionate obligations with lower compliance costs and fewer business restrictions.
The differing positions highlight a divide between global tech giants and Indian startups on regulating digital markets. Indian startups advocate for preventive rules to curb the dominance of large platforms, while the global firms seek a regulatory approach tailored to India’s unique market structure. The MCA will examine the responses as part of the ongoing market study by MDI Gurugram, which aims to balance innovation with fair competition in India’s digital economy.
The MCA is expected to review the consultation feedback and decide on the bill’s final provisions. The study by MDI Gurugram, which began consultations in September, will inform the government’s next steps on the Digital Competition Bill.