Lok Sabha Question No. 81 (UNSTARRED), answered on 2023-12-04
Subject: Digital Competition Law
Ministry: CORPORATE AFFAIRS
Asked by: S. Jagathrakshakan

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 81

ANSWERED ON MONDAY, DECEMBER 4, 2023/AGRAHAYANA 13, 1945 (Saka)

## DIGITAL COMPETITION LAW QUESTION

## 81. SHRI S. JAGATHRAKSHAKAN:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether  the  Government  subscribes  to  the  view  that  self-regulation  must  be encouraged in tandem with infusing agility in the Digital Competition Law to adopt global best practices that enable companies to navigate through the evolving trends in digital markets effectively;
- (b) if so, the details of the steps that are proposed to be taken by the Government in this regard; and
- (c) if not, the reasons therefor?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF  THE  MINISTRY  OF  PLANNING  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF CORPORATE AFFAIRS.                                                                    (RAO INDERJIT SINGH)

(a)to(c):  The Competition Commission of India (CCI), under its advocacy mandate, issues self-regulation advisories to stakeholders, where it is deemed necessary, based on its market study findings. In the digital space, self-regulation advisories have been issued in two sectors, namely, e-commerce sector and cab-aggregator industry.

A market study on e-commerce in India  was commissioned  by the CCI with a  view  to  better  understand  the  functioning  of  e-commerce  in  India  and  its implications  for  markets  and  competition.  The  objective  was  also  to  identify impediments to competition, if any, emerging from e-commerce and to ascertain the Commission's enforcement and advocacy priori ties in light of the same. The report enumerated certain areas for self-regulation by the e-commerce marketplace platforms. The Commission under its advocacy mandate urged the ecommerce  platforms  to  put  in  place  transparency  measures  such  as  search ranking, collection, use and sharing of data, user review and rating mechanism, revision in contract terms, transparent discount policy etc. The detailed study can be accessed at market-study-on-e-commerce-in-india-key-findings-andobservations1653547672.pdf (cci.gov.in)

CCI has also conducted a market study, through the study partner to analyse competition  and  regulatory  issues  pertaining  to  online  Cab  Aggregators,  with special reference to their policy of 'surge pricing'. Based on the recommendations of  the  Study,  CCI,  as  part  of  its  advocacy  mandate,  issued  advisory  to  cab aggregators to adopt self-regulatory measures, to address information asymmetry and transparency concerns. The detailed study can be accessed at -https://www.cci.gov.in/economics-research/market-studies/details/40/1.

Further, on the recommendations of the Parliamentary Standing Committee on Finance on Anti-Competitive Practices by Big Tech Companies, the Government of  India  has  constituted  a  Committee  on  Digital  Competition  Law  (CDCL)  on 06.02.2023  to  examine  the  need  for  a  separate  law  on  competition  in  digital markets.  The  Terms  of  Reference  (ToR)  of  the  CDCL,  inter-alia,  include,  (a)  to review whether existing provisions in the Competition Act, 2002, and the Rules and Regulations framed thereunder are sufficient to deal with the challenges that have emerged from the digital economy; (b) to examine the need for an ex-ante regulatory mechanism for digital markets through a separate legislation; (c) to study the international best practices on regulation in the field of digital markets; (d)  to  study  other  regulatory  regimes/  institutional  mechanisms/  government policies  regarding  competition  in  digital  markets;  (e)  to  study  the  practices  of leading players/ Systemically Important Digital Intermediaries (SIDIs) which limit or have the potential to cause harm in digital markets; and (f) any other matters related to competition in digital markets as may be considered relevant by the

Committee.

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