During the event, a report by the Esya Centre titled “A Survey-Based Assessment of the Draft Digital Competition Bill’s Impact on Consumer Welfare in Digital Markets” was also launched. This report analyzes the potential effects of the DCB on consumer welfare and digital markets.
NEW DELHI: On Tuesday (16th July): Supreme Court judge Hima Kohli emphasized that the Constitution of India serves as the foundational basis for all legislation and that contemporary laws, such as the proposed Digital Competition Bill, 2024, must adhere to constitutional principles of checks and balances.
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During the event, a report by the Esya Centre titled “A Survey-Based Assessment of the Draft Digital Competition Bill’s Impact on Consumer Welfare in Digital Markets” was also launched. This report analyzes the potential effects of the DCB on consumer welfare and digital markets.
Justice Kohli noted that India, as the world’s second-largest internet market with 881 million users, faces critical challenges in the digital market, including preferential pricing, deep discounting, and the accumulation and use of big data. She stressed the necessity for the new Bill to address these issues effectively.
Justice Hima Kohli emphasized that the Constitution of India is the cornerstone of all legislation and that modern laws must align with constitutional principles of checks and balances and uphold the standards of a society governed by the rule of law. She made these remarks during her keynote address at an event.
These challenges include “preferential pricing, deep discounting, anti-steering, bundling and tying, accumulation and use of big data, network effects, exclusive tie-ups, search and rank preferencing, restricting third-party applications, and advertising policies.”
She stressed
“Need for the upcoming inter-ministerial consultation on the Digital Competition Bill (DCB) to address these issues effectively. She highlighted that the Bill’s impact on various sectors and aspects of the digital economy, such as user experience, data protection and security, supply chains, investments, business costs, and consumer affordability, must be thoroughly examined”.
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Justice Kohli emphasized the importance of considering industry concerns before finalizing consultations, striking a balance between promoting competition and avoiding the stifling of innovation. She also suggested learning from the experiences of other antitrust regulators globally.
She outlined
key provisions of the DCB, which would empower the Competition Commission of India (CCI) to regulate Systemically Significant Digital Enterprises. She compared the Bill’s flexible, principles-based approach with the European Union’s Digital Markets Act, noting that these measures aim to ensure market fairness and transparency.
Justice Kohli mentioned that proponents believe the DCB will foster innovation and enhance consumer choice, while critics warn of potential high compliance costs and market growth hindrances. She reiterated the importance of balancing regulation with the need to avoid deterring innovation.
Additionally, she underscored the importance of considering industry concerns, ensuring market competitiveness without stifling innovation, and learning from other antitrust regulators globally.
Kohli highlighted the Bill’s key features, which include empowering the Competition Commission of India to regulate significant digital enterprises, while balancing these regulations with the need to foster innovation and offer consumer choices.
