Digital Competition Bill: Ex-Ante Regulation of Big Tech in India

The Indian Digital Competition Bill (DCB) is a paradigm shift in regulation from ex-post to  ex-ante regulation, regulating "Systemically Significant Digital Enterprises" (SSDEs), which  offer core digital services. The regime adds to the existing Competition Act of 2002 (amended  in 2023)1 by introducing pre-determined conduct rules for large digital platforms before any  anti-competitive injury is done. Until September 2026, the DCB is still in draft form after the  March 2024 Committee Report on Digital Competition Law2, with recommendations made in  August 2025 by the Parliamentary Standing Committee on Finance3. 

1) Baseline: The Parent Act and Regulatory Framework Before the  DCB 

1.1 The Competition Act, 2002 

Enactment: The Competition Act, 2002 was passed by Parliament in 2002 and received  Presidential assent on 13 January 2003 (Act No. 12 of 2003)4. 

Entry into force: The Act came into effect on 31 March 2003. 

Regulator: The Competition Commission of India (CCI) is the statutory body responsible for  enforcing the Act. 

Original Objective: The Act was designed to:  Prohibit anti-competitive agreements (Section 3) 

1 The Competition Act, 2002, No. 12 of 2003, § 3–6 (India) (enacted Jan. 13, 2003) 

2 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024) 

3 Standing Comm. on Finance, 25th Report: Evolving Role of Competition Commission of India in the  Economy, particularly in the Digital Landscape (Aug. 11, 2025) 

4 The Competition Act, 2002, No. 12 of 2003, § 3–6 (India) (enacted Jan. 13, 2003)

a Prohibit abuse of dominant position (Section 4) 

b Regulate combinations (mergers, acquisitions, amalgamations) having appreciable adverse effect on competition (Sections 5–6)5 

Original Regulatory Approach: The Competition Act, 2002 operates on an ex-post enforcement model the CCI intervenes after anti-competitive conduct has occurred and harm  has been established through lengthy inquiry proceedings. 

1.2 The Competition (Amendment) Act, 2023 

Enactment: Received Presidential assent on 11 April 2023 (Act No. 9 of 2023). Key Amendments Relevant to Digital Markets: 

5 The Competition (Amendment) Act, 2023, No. 9 of 2023, § 5–6 (India) (enacted Apr. 11, 2023)

Notified Provisions: MCA notified certain provisions effective 18 May 2023 (Sections 1–5,  9–11, 13–18, 19 except clause (f), 25–27, 29, 31–32, 36–37, 39, 41–44, 45 except 64B).  Remaining provisions await separate notifications6. 

Regulator's Capacity Building: The CCI established a Digital Markets Division (DMD) in  2025 to develop expertise in technology markets, algorithmic pricing, AI, and big data  challenges. 

2)Legislative and Regulatory Timeline 

6 Ministry of Corporate Affairs, Notification on Partial Enforcement of Competition (Amendment) Act, 2023  (May 18, 2023) 

7 Standing Comm. on Finance, 53rd Report: Anti-Competitive Practices by Big Tech Companies (Dec. 22,  2022), 

8 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024) 

9 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024); Draft Digital Competition Bill, 2024 (Mar. 12, 2024), annexed to Report;  Press Information Bureau, Press Release No. PRID=2013947 (Apr. 15, 2024). 

10 Standing Comm. on Finance, 25th Report: Evolving Role of Competition Commission of India in the  Economy, particularly in the Digital Landscape (Aug. 11, 2025).

3) Rules, Forms & Subordinate Legislation 

3.1 Draft Digital Competition Bill, 2024 (Proposed Subordinate  Framework) 

Status: Draft Bill annexed to CDCL Report (March 2024); not yet introduced in Parliament as  of September 202611. 

Notifying Authority (Proposed): Central Government (Ministry of Corporate Affairs) via  Official Gazette notification. 

Key Features of Draft DCB: 

(A) Scope and Applicability 

• Applies to pre-identified Core Digital Services (CDS) listed in Schedule (amendable  by Central Government): 

a. Online search engines 

b. Online social networking services 

11 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024); Draft Digital Competition Bill, 2024 (Mar. 12, 2024), annexed to Report.

c. Video-sharing platform services 

d. Interpersonal communications services 

e. Operating systems 

f. Web browsers 

g. Cloud services 

h. Advertising services 

i. Online intermediation services 

(B) Designation of Systemically Significant Digital Enterprises (SSDEs) Twin Test for SSDE Designation: 

Self-Assessment Obligation: Enterprises meeting thresholds must inform CCI within 90 days. 

Qualitative Criteria (Residuary Powers): CCI may designate enterprises not meeting  quantitative thresholds if they have "significant presence" and ability to influence the market  based on12: 

• Resources and control over data 

• Volume of data aggregated 

• Network effects and economies of scale 

12 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024); Draft Digital Competition Bill, 2024 (Mar. 12, 2024), annexed to Report.

Associate Digital Enterprises (ADEs): Group enterprises providing same CDS are designated  as ADEs to ensure comprehensive compliance across corporate groups. 

(C) Obligations Under Chapter III of Draft DCB 

Regulatory Flexibility: CCI to frame service-specific regulations detailing obligations for  each CDS, with differential obligations based on business model and user base size. 

(D) Exemptions13 

a Statutory Exemptions: Grounds for exemption provided in statute (like Section 54 of  Competition Act) 

b Regulatory Exemptions: CCI to specify features through regulations based on CDS  and business models 

c Government Exemptions: Central Government may exempt classes of enterprises in  public interest 

13 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024); Draft Digital Competition Bill, 2024 (Mar. 12, 2024), annexed to Report.

(E) Enforcement & Remedies 

3.2 Existing Subordinate Legislation Under Competition Act, 2002  (as amended) 

4) Implementation and Rollout Status 

4.1 Current Status (as of September 2026)

4.2 Pending Actions 

a Government Decision: MCA to finalise draft Bill after market studies and stakeholder  consultations; no timeline announced 

b Parliamentary Introduction: Bill to be introduced in Lok Sabha/Rajya Sabha after  Cabinet approval; passage timeline uncertain 

c Rulemaking: CCI to draft service-specific regulations for each CDS after Bill  enactment. 

d Designation Process: CCI to establish procedures for SSDE/ADE designation, self assessment reporting, and compliance monitoring14.  14 Standing Comm. on Finance, 25th Report: Evolving Role of Competition Commission of India in the  Economy, particularly in the Digital Landscape (Aug. 11, 2025); Legal 500, An Update on India's Proposed  Digital Competition Law (Aug. 26, 2026).

4.3 Transition Provisions (Proposed in Draft DCB) 

a 90-Day Self-Assessment Window: Enterprises meeting SSDE thresholds must notify  CCI within 90 days of commencement 

b Phased Compliance: CCI may specify staggered compliance deadlines for different  obligations based on CDS complexity 

c Grace Period: No explicit grace period in draft; penalties applicable from date of  designation unless exemptions granted15 

5)Enforcement and Compliance Actions (Under Existing Framework) 

5.1 CCI Enforcement in Digital Markets (Ex-Post, Under  Competition Act, 200216) 

15 Comm. on Digital Competition Law, Ministry of Corporate Affairs, Report of the Committee on Digital  Competition Law (Mar. 12, 2024); Draft Digital Competition Bill, 2024 (Mar. 12, 2024), annexed to Report. 16 The Competition Act, 2002, No. 12 of 2003, § 3–6 (India) (enacted Jan. 13, 2003).

5.2 CCI Compliance Circulars and FAQs 

6) Judicial and Legislative Challenges 

6.1 Pending Litigation on Digital Market Cases

6.2 Parliamentary Questions and Industry Representations 

6.3 Comparative Challenges (International Context)

7) Comparative Angle 

7.1 International Comparators 

17 Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on  contestable and fair markets in the digital sector (Digital Markets Act), 2022 O.J. (L 265) 1.

7.2 Connected Indian Legislation 

18 Digital Markets, Competition and Consumers Bill 2023 (UK) (Bill No. [●], 2022–23 Parl. Sess.).

8) Dated Source Log 

Primary Sources 

19 The Digital Personal Data Protection Act, 2023, No. 22 of 2023 (India) (assented to 11 Aug. 2023).meity+1 

20 Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, G.S.R.  139(E) (Feb. 25, 2021) (India) [hereinafter IT Rules, 2021].static.pib.gov+1 

21 Consumer Protection (E-Commerce) Rules, 2020, G.S.R. 462(E) (July 23, 2020) (India).

Secondary Sources

9) Comprehensive Report: Evolution of India's Digital Competition  Framework 

9.1 The Original Act: Competition Act, 200222 

The Competition Act, 2002 superseded the Monopolies and Restrictive Trade Practices Act,  1969 (MRTP Act) to harmonize India’s competition laws with international standards and  requirements of the liberalized economy. The act mandates the creation of the Competition  Commission of India (CCI), an independent regulatory body responsible for: 

1. Prohibition of Anti-Competitive Agreements (Section 3): Cartelization (horizontal  agreements) and exclusive dealings (vertical agreements) causing appreciable adverse  effect on competition (AAEC)23.  

2. Abuse of Dominant Position (Section 4): Ensuring that companies holding dominant  positions in the market do not indulge in predatory pricing, denial of market access, or  any form of discrimination.  

3. Combination (Sections 5-6): Mergers, acquisitions, and amalgamations of enterprises  above certain threshold limits. 

22 The Competition Act, 2002, No. 12 of 2003 (India) (assented to 13 Jan. 2003). 

23 The Competition Act, 2002, No. 12 of 2003, § 3 (India) (prohibiting anti-competitive agreements, including  horizontal cartelisation and vertical exclusive dealings that cause an appreciable adverse effect on competition).

Enforcement Model: The Act adopted an ex-post approach CCI intervenes after anti competitive conduct occurs, following a fact-intensive inquiry process that can take 2–4 years.  This model was designed for traditional markets where harm unfolds gradually, and remedies  (penalties, behavioural orders) can restore competition. 

9.2 First Major Amendment: Competition Law Review Committee  (CLRC) Report, 2019 

As part of its efforts to evaluate the effectiveness of the 2002 Act, MCA established the  Competition Law Review Committee (CLRC) in 2018. CLRC 2019 Report has highlighted  some shortcomings in addressing issues in digital markets: 

a Time-consuming investigations: Digital markets tip quickly; after-the-fact  enforcement is unable to stop dominance in the market.  

b Narrow remedies: Fines and behavioural remedies might not be enough for restoring  contestability in digital markets where the winner takes most of the pie.  • Asset/turnover threshold: Big Tech mergers frequently involve companies with small  assets and turnover but high strategic importance. 

CLRC Recommendations: 

a Introduce deal value threshold for combinations 

b Strengthen CCI's technical capacity 

c Consider ex-ante tools for digital markets (deferred for separate study) 

9.3 Second Major Amendment: Competition (Amendment) Act,  2023 

Based on CLRC recommendations, MCA introduced the Competition (Amendment) Bill, 2022  in August 2022. The Bill was passed by Lok Sabha on 29 March 2023, Rajya Sabha on 6 April  2023, and received Presidential assent on 11 April 2023 (Act No. 9 of 2023)24.  24 The Competition (Amendment) Act, 2023, No. 9 of 2023 (India) (introduced as the Competition  (Amendment) Bill, 2022 in Aug. 2022; passed by Lok Sabha on 29 Mar. 2023 and Rajya Sabha on 3 Apr. 2023;  received Presidential assent on 11 Apr. 2023)

Key Changes Introduced: 

1. Deal Value Threshold (DVT): Transactions exceeding ₹2,000 crore require CCI  approval if target has "substantial business operations in India" (Section 5(d)). a. Rationale: Capture Big Tech acquisitions of startups (e.g., Facebook WhatsApp, Google-Fitbit) that previously escaped scrutiny due to low target  turnover/assets. 

2. Settlement and Commitment Mechanisms: Introduced Sections 48A (settlement)  and 48B (commitments) to enable faster resolution of anti-competitive conduct. a. Rationale: Reduce litigation time; allow enterprises to offer remedial measures  without admitting guilt. 

3. Expanded Definition of "Control": Broadened to include "material influence" over  management or strategic decisions, capturing minority stakes with veto rights common  in tech investments. 

4. Increased Penalties: Turnover-based penalties now calculated on global turnover (not  just India turnover), aligning with EU/UK practices. 

Partial Notification: MCA notified certain provisions effective 18 May 2023; DVT and  related regulations awaited CCI's (Combinations) Regulations, 2024. 

9.4 Parliamentary Push for Ex-Ante Regulation: 53rd Report of  Standing Committee on Finance (December 2022) 

On 22 December 2022, the Parliamentary Standing Committee on Finance submitted its 53rd  Report on "Anti-Competitive Practices by Big Tech Companies" to Lok Sabha. 

Key Findings: 

a Identified 10 predominant anti-competitive practices (ACPs) by Big Tech: a. Self-preferencing in search rankings 

b. Mandatory use of proprietary payment systems 

c. Pre-installation of own apps 

d. Data aggregation across services to entrench dominance 

e. Tying and bundling of services 

f. Restrictions on third-party app stores

g. Algorithmic collusion 

h. Killer acquisitions of potential competitors 

i. Interoperability denial 

j. Opaque terms for business users 

• Network effects and economies of scale in digital markets lead to "winner-takes-most"  outcomes, making markets irreversibly polarised once dominance is established. • Ex-post enforcement is insufficient: By the time CCI concludes inquiries (2–4 years),  markets have already tipped; remedies cannot restore contestability. 

Recommendations: 

a Enact a dedicated Digital Competition Act with ex-ante obligations for large digital  enterprises. 

b Designate "Systemically Significant Digital Intermediaries" (SSDIs) based on  quantitative thresholds (turnover, users, GMV). 

c Prohibit specific conduct (self-preferencing, data combination, tying) for designated  enterprises. 

d Impose penalties up to 10% of global turnover for non-compliance. 

9.5 Committee on Digital Competition Law (CDCL) and Draft  DCB, 2024 

Constitution: Following the 53rd Report, MCA constituted the Committee on Digital  Competition Law (CDCL) on 6 February 2023, chaired by Dr. Manoj Govil (Secretary, MCA). 

Mandate: 

a Review Competition Act, 2002's efficacy for digital markets 

b Examine need for ex-ante regulatory framework 

c Study international practices (EU DMA, UK DMCC, German ARC amendments) • Draft legislation if needed 

Deliberations: CDCL held consultations with: 

a Industry chambers (NASSCOM, FICCI, ASSOCHAM)

b Government ministries (MeitY, RBI, SEBI, CCI) 

c Legal and economic experts 

d International regulators (EU DG COMP, UK CMA, Australian ACCC) 

Report Submission: CDCL submitted its Report along with Draft Digital Competition Bill,  2024 on 12 March 2024. 

Key Recommendations: 

1. Introduce Digital Competition Act: Supplement Competition Act, 2002 with ex-ante framework targeting large digital enterprises. 

2. Designate Systemically Significant Digital Enterprises (SSDEs): a. Quantitative thresholds: Twin test of financial strength (turnover, GMV,  market cap) and spread (1 crore end-users or 10,000 business users in India). b. Qualitative criteria: Residuary powers for CCI to designate enterprises with  significant market influence despite not meeting thresholds. 

3. Core Digital Services (CDS): Pre-identified list of 9 services (search, social  networking, video-sharing, communications, OS, browsers, cloud, advertising,  intermediation) susceptible to concentration. 

4. Conduct Obligations: Prohibit self-preferencing, data misuse, tying, and restrictions  on third-party apps; CCI to frame service-specific regulations. 

5. Enforcement: Borrow procedural framework from Competition Act; penalties up to  10% of global turnover; separate NCLAT bench for digital appeals. 

Public Consultation: MCA placed CDCL Report and Draft DCB on its website for public  comments from 12 March to 15 May 2024. 

9.6 Parliamentary Reconsideration: 25th Report of Standing  Committee on Finance (August 2025) 

Presentation: Standing Committee on Finance presented its 25th Report on "Evolving Role of  CCI in the Economy, particularly in the Digital Landscape" before Parliament on 11 August  2025.

Context: By mid-2025, industry stakeholders (startups, venture capital, Big Tech) raised  concerns about DCB's potential impact: 

• Compliance burden: Startups fear being designated as SSDEs prematurely, diverting  resources from innovation. 

• Overbreadth: Obligations may stifle product development and experimentation. • Global misalignment: India's thresholds may capture firms not designated as  gatekeepers in EU/UK, creating regulatory arbitrage. 

Key Recommendations: 

1. Retain Ex-Ante Framework: Endorse ex-ante regulation but with refined thresholds  to avoid inadvertently capturing fast-growing domestic firms. 

2. Introduce Rebuttal Mechanism: Allow enterprises to rebut SSDE designation in  exceptional cases (like EU DMA's efficiency defence). 

3. Evidence-Based Approach: Conduct market studies to identify specific harms before  finalising obligations; avoid "blanket restrictions.” 

4. Protect MSMEs and Startups: Exempt enterprises below certain turnover/user  thresholds; provide grace periods for compliance. 

5. Strengthen CCI Capacity: Expand Digital Markets Division; hire technical experts in  AI, algorithms, and data science. 

6. Inter-Regulatory Coordination: Formalise MoUs with MeitY, RBI, SEBI, and Data  Protection Board to avoid overlapping obligations. 

Government Response: MCA acknowledged recommendations; media reports in August  2025 indicated government "pausing" DCB's ex-ante provisions to conduct further market  studies and stakeholder consultations. 

9.7 Current Status (September 2026): Pending Enactment 

As of September 2026, the Digital Competition Bill has not been introduced in Parliament. Ongoing Developments: 

a CCI Digital Markets Division (DMD): Operational since 2025; conducting market studies on search, app stores, cloud services, and online intermediation.

b MCA Consultations: Holding closed-door meetings with industry bodies (NASSCOM, Startup India, Big Tech) to refine thresholds and obligations. 

c Parliamentary Pressure: Opposition parties and some MPs urging government to introduce DCB in upcoming Parliament session (Winter 2026). 

Likely Next Steps: 

1. Cabinet Approval: MCA to submit revised Draft DCB to Cabinet for approval (timeline uncertain). 

2. Parliamentary Introduction: Bill to be introduced in Lok Sabha (or Rajya Sabha) post-Cabinet approval. 

3. Parliamentary Committee Review: May be referred to Standing Committee on Finance for further scrutiny. 

4. Passage and Notification: If passed, Central Government to notify effective date; CCI to frame regulations within 6–12 months.

Siya Holkar