The Ministry of Corporate Affairs (MCA) has highlighted that the proposed Digital Competition Bill (DCB), which includes key provisions on anti-steering and self-preferencing, is aimed at curbing anti-competitive practices by Systemically Significant Digital Enterprises (SSDEs) and fostering a fairer digital marketplace in India.
In a written reply to the Rajya Sabha, Minister of State for Corporate Affairs Shri Harsh Malhotra stated that the draft Bill, developed by the Committee on Digital Competition Law (CDCL), seeks to ensure enhanced consumer choice, boost innovation across sectors, and promote an inclusive digital economy.
The provisions on anti-steering and self-preferencing will prevent dominant digital platforms from unfairly favouring their own services or restricting users from accessing competing services. This move is expected to significantly shape the innovation strategies of large digital enterprises operating in India.
Malhotra further emphasized that the Bill draws lessons from international frameworks such as the European Union’s Digital Markets Act (DMA), 2022, which selectively regulates large digital players in an ex-ante manner. He noted that similar laws are being enacted in jurisdictions like the UK and the US, reflecting a global trend towards stricter oversight of digital markets.
Following extensive stakeholder consultations with industry associations, civil society groups, legal experts, and domestic as well as foreign digital enterprises, the government has stressed the need for an evidence-based approach. “Market studies are essential to build a robust foundation for ex-ante regulation, especially since the global implementation of such laws is still at a nascent stage,” the Minister added.
The Digital Competition Bill, once enacted, is expected to align India’s digital market regulations with international best practices while balancing innovation and competition.
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