Tech giants like Google, Apple, and others Oppose Ex-Ante Regulation on Digital Competition Law
Major tech companies like Google, Apple, Flipkart, Amazon, and Uber are pushing back against proposed regulations outlined by an expert committee on digital competition law. They argue that imposing ex-ante regulation could hinder innovation and lead to unintended consequences such as limited consumer choice and higher prices. On the other hand, Twitter and Paytm support the idea, with Paytm suggesting regulations be applied only to large digital enterprises with significant market influence.
Amazon highlights its existing heavy regulation under foreign direct investment policy, while Apple India suggests a light-touch regime to foster innovation, proposing the establishment of a Competition Commission of India office in Bengaluru for better access to the country’s tech ecosystem.
Flipkart echoes similar sentiments, stating that India’s current ex-post regulatory framework is adequate for overseeing digital markets and cautioning against adopting a one-size-fits-all approach like the European Digital Markets Act.
MakeMyTrip favors limited ex-ante regulation, focusing on large horizontal platforms with extensive digital ecosystems. The expert committee suggests regulating enterprises with a significant presence in providing core digital services in India and the ability to influence the Indian digital market.
The discussion coincides with global scrutiny of tech giants like Google and Apple for alleged market abuses involving user data. Last year, the Competition Commission of India imposed hefty penalties on Google in two separate cases.
The proposed Bill requires digital companies to notify the Competition Commission of India if they qualify as Systemically Significant Digital Enterprises (SSDE) based on specific criteria. SSDEs must adhere to transparency, fair practices, and non-discrimination, and refrain from favoring their products or using non-public data from business users.
Some experts warn that such regulation could impede innovation and result in reduced consumer choice and higher prices. Key criteria for identifying SSDEs include turnover in India, global turnover, gross merchandise value in India, global market capitalization, and user numbers for core digital services.
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