India studies scope and thresholds for Digital Competition Bill

India's Ministry of Corporate Affairs (MCA) has initiated a study to determine which major tech companies and digital services will be subject to the country's upcoming Digital Competition Bill (DCB). The findings will help the government finalize the legislation.

According to information obtained via a Right to Information (RTI) request, the study will focus on defining criteria, such as revenue thresholds, for identifying large digital enterprises. It will also assess whether the bill should cover more or fewer digital services and evaluate the impact of the regulations on competition, market entry, and smaller businesses. International regulatory approaches and the balance between competition and innovation will be examined.

The ministry released a draft of the DCB in March 2024 and invited public comments until mid-April. The draft proposes an ex-ante regulatory framework, imposing obligations on designated Systemically Significant Digital Enterprises (SSDEs) before anti-competitive conduct occurs. India's parliamentary finance committee has previously recommended finalizing the bill and expanding its scope to include virtual assistants and cloud services.

The study will assess the effectiveness of the bill's proposed thresholds and the need for revisions to identify SSDEs. It will also estimate how many companies would fall under the bill with revised criteria and how the regulation might affect major tech companies and market dynamics. The objective is to establish a balanced and forward-looking digital competition framework that considers innovation and the costs for smaller businesses.