India's Digital Competition Bill Delayed by Market Study

India's government has postponed the finalization of its Draft Digital Competition Bill, initiating a comprehensive market study to inform key aspects of the proposed legislation. The Ministry of Corporate Affairs stated it has adopted an "evidence-based and adaptive approach" after considering stakeholder feedback.

The market study will specifically examine thresholds for identifying Systemically Significant Digital Enterprises (SSDEs) and the core digital services covered by the bill. It will also assess the proposed framework's impact on competition, innovation, market entry for new businesses, and smaller players including startups and MSMEs. According to the government, the study's findings will aid in "finalizing a balanced and forward-looking digital competition framework." A request for proposals was issued on November 3, 2025, with a bid deadline of January 5, 2026.

The Ministry has issued official responses and comments in November 2025 and January 2026, but the results of the market study are not yet public. The study aims to gather empirical evidence before determining the framework for ex-ante regulations, including defining qualitative and quantitative thresholds for identifying SSDEs and core digital services.

More broadly, the assessment will review the proposed thresholds and the list of core digital services. It will examine the implications of the bill for various stakeholders, including impacts on competition and market access. The goal is to ensure "fairness, competitive neutrality, and innovation," while equipping the Competition Commission of India (CCI) with suitable tools to effectively regulate digital markets.

The government also highlighted its use of existing market studies by the CCI, including one on artificial intelligence. There are currently no plans to revive the National Competition Policy, as amendments made to the Competition Act in 2023 already support its objectives.