Lok Sabha Question No. 120 (UNSTARRED), answered on 2025-12-01
Subject: Amendments to Competition Act, 2002
Ministry: CORPORATE AFFAIRS
Asked by: Shri P C Mohan

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 120

## TO BE ANSWERED ON MONDAY, DECEMBER01, 2025

## AMENDMENTS TO COMPETITION ACT, 2002

## QUESTION

120. Shri P C Mohan

## Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government has proposed or notified any amendments to the Competition Act, 2002 to address challenges arising from digital markets, and if so, the details thereof;
- (b) whether the Competition Commission of India (CCI) has specific provisions or powers to regulate the collection, processing, and use of user data by firms, especially large digital platforms, if so, the details thereof;
- (c) whether the Government has any provisions or proposed measures  to  prevent  misuse  of  user  data  for  anti-competitive practices such as data dominance or exclusionary conduct, if so, the details thereof; and
- (d) the steps taken/being taken by the Government to strengthen the legal framework to promote fair competition and protect consumer  interests  in  digital  markets  in  view  of  the  growing digital  economy  and  startup  ecosystem  in  Bengaluru  and  other major cities?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER  OF  STATE  IN  THE  MINISTRY  OF  ROAD  TRANSPORT  AND HIGHWAYS.

(SHRI HARSH MALHOTRA)

(a):To address challenges in digital markets, the Competition (Amendment)  Act,  2023  introduced  key  reforms  that  empower  the Competition  Commission  of  India  (CCI)  to  effectively  regulate  such markets  by:  introducing  a  ₹2,000  crore  Deal  Value  Threshold  along with  the  Substantial  Business  Operations  in  India  (SBOI)  criterion  to capture high-value digital market transactionsthat previously were not within the purview; settlement and commitment mechanisms for faster case  resolution;  inclusion  of  hub-and-spoke  facilitators  within  cartel provisions; global-turnover -based proportional penalties. The Act also expands  the  scope  of  Section  3,  which  governs  anti-competitive agreements,  by  enabling  the  inclusion  of  'any  other'  categories  of agreements within its ambit.

(b)&(c):  The  Competition  Act  does  not  have  any  specific  provisions relating to collection, processing, and use of user data.While access to  data  enables businesses to engage in data-driven innovations and helps  them  to  better  assess  consumer  demand,  habits,  needs  and preferences, lower data protection standards can harm consumers by reducing the quality of services, creating entry barriers for potential competitors,  entrenching  dominant  firms  and  distorting  competition across various markets. CCI's role comes into play when usage of data as a non- price parameter leads to anti-competitive practices.

Further,  the  enactment  of  the  Digital  Personal  Data  Protection Act,  2023  ('the  Act') by  Ministry  of  Electronics  and  Information Technology  (MeitY),  establishes  a  robust  framework  governing  the processing  of  digital  personal  data  in  India.  The  Act  is  now  fully  in force and is operationalised through the Digital Personal Data Protection  Rules,  2025,  notified  on  14  November  2025.  The  above framework encourage responsible, transparent and purpose-bound use of personal  data,  naturally  supporting  a  fair  and  trusted  digital ecosystem.

(d):  In  addition  to  what  has  been  mentioned  in  Para  (b)  &  (C),  the Department of Consumer Affairs has notified the Consumer Protection (E-Commerce)  Rules,  2020  on  23rd  July,  2020  under  the  Consumer Protection  Act,  2019,  to  prevent  unfair  trade  practices  and  protect consumers in the e-commerce sector. The Rules inter-alia mandate ecommerce entities to integrate with the National Consumer Helpline, appoint a grievance officer, and ensure complaints are acknowledged within  48  hours  and  resolved  within  one  month.  Marketplace  ecommerce entity must ensure accuracy of product information, display complete seller details including GSTIN and PAN details etc, provide clear  information  on  returns,  refunds,  warranties  and  delivery,  and disclose  ranking  parameters  and  any  differentiated  treatment  of sellers. No e-commerce entity shall manipulate the price of goods or services to gain unreasonable profit or impose unjustified prices, nor shall  it  discriminate  between  consumers  of  the  same  class  or  make arbitrary classifications that affect consumer rights under the Act.

Under the provisions of the Consumer Protection Act, 2019, the Central  Consumer  Protection  Authority  (CCPA),  an  executive  agency, came  into  existence  on  24.07.2020.  It  is  designed  to  intervene,  to prevent consumer detriment arising from unfair trade practices and to initiate  class  action(s),  including  the  enforcement  of  recalls,  refunds and return of products.

The CCPA, in exercise of the powers conferred by Section 18 of the Consumer  Protection Act, 2019, has issued 'Guidelines for Prevention  and  Regulation  of  Dark  Patterns,  2023'  on  30 th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark  patterns  identified  in  e-Commerce  sector.  These  dark  patterns include  false  urgency,  Basket  Sneaking,  Confirm  shaming,  forced action, Subscription trap, Interface Interference, Bait and switch, Drip Pricing, Disguised Advertisements,  Nagging,  Trick  Wording,  Saas Billing and Rogue  Malwares.  Further, an 'Advisory in terms  of Consumer Protection Act, 2019 on Self-Audit by E-Commerce Platforms for  detecting  the  Dark  Patterns  on  their  platforms  to  create  a  fair, ethical  and  consumer  centric  digital  ecosystem'  was  issued  by  the CCPA on 5th June, 2025.

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