Panel on Digital Competition Law wants ex ante antitrust regulations for digital enterprises
A proactive strategy has been suggested by the Committee for internet Competition Law to address the anti-competitive actions of major internet corporations. The committee has suggested an ex-ante law that would expressly apply to major digital firms as a supplement to the Competition Act in its draft report, which was made public on Tuesday.
According to the draft paper, “such an ex-ante law should ensure that the CCI intervenes before instances of anti-competitive conduct transpire, and that the behaviors of large digital enterprises are proactively monitored.”
The committee suggests that a predetermined list of Core Digital Services that are susceptible to concentration should be included under the Digital Competition Act. Additionally, it suggests that market research, new international standards, and the enforcement experience of the Competition Commission of India be taken into consideration while compiling this list.
The Committee suggests that only businesses with a “significant presence” in India that may impact the country’s digital market and provide Core Digital Services should be subject to the Digital Competition statute.
The group has suggested two tests: considerable financial strength and significant spread, to help identify these major digital actors. Based on these tests, the businesses must do a self-evaluation and, if they pass, submit it to the CCI. If the criteria is not followed, there might be severe penalties, up to 10% of worldwide revenue.
The committee justifies the necessity for an ex-ante competition legislation for digital corporations like as Google, Apple, and Amazon by stating that the Competition Act’s ex-post style of regulation necessitates time-consuming fact-finding and investigation procedures by design. It claims that drawn-out enforcement actions impede early discovery and remedy.
Additionally, it noted that incumbents can benefit quickly from shifts in digital marketplaces, highlighting the need for a regulatory approach that prioritizes the prevention of anti-competitive behavior.
